Harvard University AI Stock Portfolio: Alphabet (GOOGL)

Harvard’s Stake: $177,413,018

Alphabet (NASDAQ:GOOGL) is proving the AI doubters wrong. The fearfulness was that AI would cannibalize Google Search. The world is the opposite. Search is increasing faster due to the fact that of AI, not slower.

In Q1, Google Search gross roseate astir 19%. Users are not abandoning Google. They are utilizing it more. AI Overviews and AI Mode are driving deeper engagement, not replacing it. YouTube is benefiting too. Ad gross grew 11%, supported by AI-driven targeting that is making ads much applicable and much effective.

Gemini is scaling rapidly. The standalone app has reached astir 750 cardinal monthly progressive users. When you see Google Search AI Overviews and AI Mode, Gemini’s models present powerfulness implicit 2 cardinal monthly users. Enterprise adoption is besides accelerating. More than 8 cardinal paid endeavor seats person been sold crossed thousands of companies. Over 13 cardinal developers globally are present gathering connected Gemini. These are not tiny numbers.

Google Cloud is the biggest catalyst successful the story. Revenue grew 63% successful Q1. Operating margins are expanding sharply arsenic the concern shifts toward higher-value endeavor workloads. The Cloud backlog stands astatine astir $460 billion. That is not imaginable revenue. That is contracted, visible, aboriginal revenue. It gives tremendous assurance successful the maturation runway ahead.

Alphabet (NASDAQ:GOOGL) besides has a hardware vantage that is often overlooked. Its customized TPU chips trim its dependence connected outer AI compute and amended outgo efficiency. As AI workloads scale, this becomes an progressively almighty edge.

L1 Capital International Fund stated the pursuing regarding Alphabet Inc. (NASDAQ:GOOGL) successful its Q1 2026 capitalist letter:

Portfolio adjustments during the March 2026 4th were comparatively modest, but deliberate. We trimmed investments successful AerCap, Alphabet Inc. (NASDAQ:GOOGL), HCA Healthcare and Weir Group astatine prices astir the apical extremity of our assessed just worth range, with each of these businesses benefitting from affirmative sentiment intra-quarter. Alphabet’s stock terms has much than doubled implicit the past 12 months. This reflects beardown .. (Click Here to Read the Letter successful Detail).

While we admit the imaginable of GOOGL arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.