Alphabet is still an attractive AI stock: AI has not killed search; it is integrating AI into search rather than being disrupted. Q2 2026 revenue grew 24%, search/other ads 17%, Google Cloud 82%. AI capex pressures near-term profit and regulatory risk persists, but the ad-funded business supports long-run flexibility.

Well, my first choice today is a name that everyone who follows artificial intelligence stocks is talking about right now, and that is of course Alphabet, the parent company of Google.

It is impossible to talk about artificial intelligence stocks without mentioning Alphabet. As you know, despite all the talk about artificial intelligence , most of what Alphabet does in this field is aimed at generating profit from its core businesses, such as advertising and cloud computing.

The company still relies primarily on search, with YouTube and its extensive advertising network making up the majority of its revenue, which is generated every time someone clicks on a search ad or watches a video on YouTube.

And then, of course, there's Google Cloud. It is the world’s third-largest provider of cloud computing services alongside Amazon Web Services and Microsoft Azure, and has developed its own family of artificial intelligence models , Gemini.

This model now powers a consumer chatbot application, which we will discuss later, as well as an AI layer built directly into the Google search engine itself.

Interestingly, this company is far from being just an AI infrastructure company. Alphabet, on the other hand, has been experimenting with artificial intelligence from multiple angles simultaneously: a feature in its search engine, a standalone application for consumers, and of course, cloud computing services for enterprises.

All of this is fully funded through a highly profitable balance sheet, generating cash flows, and relying on its long-established advertising business. It does not actually need any of these investments to succeed in order to continue growing.

Now, over the past few years, there has been a prevailing sense of pessimism regarding Alphabet. The prevailing idea is that AI-powered chatbots, such as ChatGPT, will take over a large share of Google's search engine, just as the search engine previously did with print advertising, right?

The idea is that Alphabet's dominance has come to an end . Well, that hasn't happened yet . Search revenues continued to grow, even after Alphabet launched artificial intelligence into search results.

There is an integrated artificial intelligence system within the search engine itself. Essentially, what we are seeing is that Alphabet has managed to integrate artificial intelligence into its existing business rather than acquire it.

This also contributed to accelerating the growth of Google Cloud.

To illustrate this with numbers, in the second quarter of 2026, Alphabet's total revenue grew by 24% year-over-year. Search and other advertising revenue grew by 17%. Google Cloud revenues grew by 82%, a remarkable acceleration compared to previous generous growth.

The value of future contracts contracted in the field of cloud computing reached $514 billion . The cloud computing sector is witnessing remarkable, gradual progress thanks to the integration of artificial intelligence.

Gemini has 950 million monthly active users, and its daily active users have tripled in the past year. There is also Gemini Enterprise, Alphabet 's AI product for businesses, which is now used by nearly 90% of Fortune 100 companies.

Interestingly, if we recall the market's reaction after Alphabet announced its earnings a few months ago , the stock price fell.

I think this is due to investors focusing on the size of Alphabet's spending on AI infrastructure compared to expectations. And of course, as with many other companies in this field, Alphabet continued to increase its projected capital expenditures.

It invests heavily in artificial intelligence infrastructure, Tensor processing units, and data centers, and is working to grow its business.

Ultimately, this will lead to a flow of cash and profits to the company. This is why we are seeing some pressure on profitability growth in the near term. But in the long run , I think this will give it great flexibility in its consumer and business-oriented operations.

Of course, there are always regulatory risks facing Alphabet. This is something Alphabet has overcome time and time again , but it always remains a factor to consider when analyzing any project.

For me, the bottom line is that Alphabet has spent the last few years refuting the idea that artificial intelligence will kill research. In fact, it is improving its search operations using artificial intelligence.

It has its own chip manufacturing division, which consists of TDPs (Tension Processing Units), helping it to reduce its reliance on external suppliers. Although most of the growth is driven by search, advertising, and Google's cloud services, there are other important investments.

There are some of these major investments that Alphabet owns.

Of course, Waymo is one of the most prominent, especially with its expansion into the field of self- driving vehicles. Waymo currently leads the self-driving race in the United States by a wide margin.

The company is also expanding rapidly outside the United States .

But there are other areas where Alphabet is investing, such as isomorphic laboratories and AI- powered drug discovery .

There are many ways you can take advantage of very exciting industry trends by investing in this business. Most importantly, this company’s growth story is built on genuine profitability, cash flow, and steady revenue growth.

As you know, it is the leading company in search advertising and one of the leading companies in cloud computing. So , I believe—and I say this as a long- term shareholder in Alphabet—that Alphabet stock is still an attractive investment option in this space if you are looking for AI stocks.

Its rating also tends to be more attractive than many competitors. Therefore, it is a worthwhile option to consider if you want to add an AI stock to your investment portfolio.

Yes, Google is essentially a very profitable company. It is true that search may be disrupted in the future, but the percentage of search in total revenue has already decreased, and is now close to 50%, because the other side of its business, especially Google Cloud, is growing at a much faster pace and generating huge profits.

Therefore, I think Google is always one of the companies I would put on any list.