What Is One of the Best Artificial Intelligence (AI) Stocks to Buy Now?
This business boasts several AI achievements, yet its stock remains reasonably valued.
Nvidia often captures attention as a top artificial intelligence stock. But another business has poured over $22 billion into tech infrastructure in the second quarter alone to support its AI ambitions.
That company is Google parent Alphabet (GOOGL -0.91%) (GOOG -0.94%). Its shares hit an all-time high the week ending Sept. 19 after climbing nearly 35% in 2025. Here are some of the factors that make it a leading AI stock.
Image source: Getty Images.
Alphabet’s many AI strengths
Alphabet’s business escaped relatively unscathed from legal penalties related to its Google search engine being declared an illegal monopoly. After the presiding judge delivered the verdict this month, the tech giant’s appeal as an AI stock has taken off, and it’s understandable why.
The company’s AI enhancements to its search engine resulted in increased consumer usage, enabling the company’s second-quarter sales to soar 14% year over year to $96.4 billion. More importantly, the additions demonstrate Google’s ability to maintain its users in the face of stiff competition from AI rivals such as OpenAI and Perplexity. Alphabet is just getting started. Its AI-powered robotaxi service, Waymo, is quickly expanding across the U.S. thanks to partnerships with businesses such as Uber and Lyft. Waymo has logged over 100 million miles on public roads as of Q2.
Alphabet stock maintains a reasonable valuation despite its share price increase. This is evident when comparing its price-to-earnings (P/E) ratio against AI superstar Nvidia, and AI competitor Microsoft, which also challenges Google in search, cloud computing, and digital advertising.
Data by YCharts.
Alphabet’s P/E multiple remains well below the others’, indicating a better value for investors. With an attractive valuation, and its AI investments yielding rising revenue, Alphabet stands out as a strong AI stock.
Robert Izquierdo has positions in Alphabet, Microsoft, Nvidia, and Uber Technologies. The Motley Fool has positions in and recommends Alphabet, Microsoft, Nvidia, and Uber Technologies. The Motley Fool recommends Lyft and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
