key points
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Alphabet is engaged in both the hardware and software sides of the AI industry.
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Its hardware and software are used by major competitors like OpenAI, Anthropic and Apple.
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The company is fast-growing, profitable and stable due to its size.
There are many companies involved in the artificial intelligence (AI) industry. It can be difficult for an investor to know where to invest his money.
But for a one-ticker game one has to invest in the whole AI industryGoogle’s parent company alphabet (NASDAQ:GOOG)(NASDAQ:GOOGLE) Makes a good case for yourself.
Will AI create the world’s first trillionaire? Our team recently released a report on a little-known company dubbed an “essential monopoly” that provides critical technology needed by both Nvidia and Intel. continue “
After all, it is the only major AI player operating in both software and hardware segments of the industry through its Google Gemini AI platform and Tensor Processing Unit (TPU) hardware.
A rendering of a robot hand projecting a hologram of an AI.
Image Source: Getty Images.
Full-spectrum play
First of all, let’s talk about Gemini, which has made a good share of the market for itself. It has grown from 7% share of the enterprise Large Language Model (LLM) market to 21% by 2023 and is set to overtake OpenAI’s ChatGPT this year if the trend continues.
This software also forms the basis of Alphabet’s “Magnificent Seven” peers. Apple‘s AI program. This partnership turned one of Google’s biggest competitors into a customer.
On the hardware side of the equation, Alphabet’s TPU hardware represents one of the first real competitors NVIDIAThe graphics processing unit (GPU).
And, while Anthropic’s cloud may have a whopping 40% share of the enterprise LLM market, Anthropic announced late last year that it would add more than a gigawatt of online computing capacity with Alphabet TPU chips.
Although it may compete with Gemini in terms of cloud software, it will run partly on Google hardware. OpenAI is also considering using TPU chips to power its software. Therefore, Alphabet is a strong contender on both ends of the AI play.
It also has the financial status you’d expect from Google’s parent company.
Alphabet projects revenue of $402.8 billion in 2025, up 15% from 2024, which is very fast growth given the company’s sheer size. It also has a net profit margin of 32.8% and a very good debt-to-equity ratio of 0.14.
So, if you’re looking for a safe, stable, all-in-one AI play, take a look at Alphabet.
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