I Can’t Stop Buying Alphabet Because The AI Talent Narrative is Wrong

3 weeks ago 9

Alex Sirois

Sun, July 19, 2026 astatine 11:12 AM CDT 4 min read

Quick Read

GOOGL's Cloud backlog astir doubled to $460B and Q1 EPS of $5.11 crushed the $2.63 estimate, undercutting the AI encephalon drain narrative.
Alphabet's 63% unreality maturation and 350 cardinal paid subscribers springiness it structural advantages implicit Microsoft's mature unreality and Meta's ad-only model.
Warren Buffett initiated Berkshire's Alphabet involvement and expressed regret for not buying sooner, but $175B successful 2026 CapEx with FCF already down 47% is the superior risk.
Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Google didn't marque the cut. Grab the names FREE today.

I support hitting the bargain fastener connected Alphabet (NASDAQ:GOOGL) due to the fact that the loudest bearish communicative attached to it, the thought that Google is bleeding AI endowment to Anthropic and OpenAI, does not lucifer thing I spot successful the numbers oregon the org chart. It is the cleanest spread betwixt communicative and world I person recovered successful my portfolio, and I americium utilizing it.

A bronze bull figurine stands connected the left, looking upwards and to the right. To its right, a gangly stack of metallic coins is positioned. On the acold right, a metallic carnivore figurine stands, looking towards the left. All figures are acceptable against a plain achromatic background.

The Thesis Behind Every Add

My condemnation rests connected 2 structural facts the encephalon drain communicative ignores. First, the merger of Google Brain and DeepMind nether Demis Hassabis created the densest attraction of world-class AI PhDs connected the planet, operating arsenic 1 coordinated technological portion alternatively than warring interior teams. Second, Google has finalized multi-billion-dollar retention packages that lucifer startup equity portion giving researchers entree to interior TPU clusters that startups physically cannot replicate. If you privation to bid a frontier exemplary without hitting a compute wall, Google is the destination. A fistful of high-profile departures does not alteration that math.

The Receipts

The fiscal grounds backs the org chart. Q1 2026 gross landed astatine $109.90 billion, up 21.8% twelvemonth implicit year, with EPS of $5.11 against a $2.63 estimate. That was the 4th consecutive EPS beat.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Google didn't marque the cut. Grab the names FREE today.

Google Cloud grew 63% twelvemonth implicit twelvemonth to $20.03 billion, and the backlog astir doubled 4th implicit 4th to implicit $460 billion. Gemini is processing 16 cardinal tokens per infinitesimal via nonstop API, up 60% from the anterior quarter. Companies losing their champion researchers bash not vessel merchandise astatine that velocity. Sundar Pichai enactment it plainly connected the Q1 call: "The information that we ain frontier models and ain the silicon truly helps america enactment up of the curve."

The dividend, initiated successful 2024, was raised 5% to $0.22 per stock successful April. The absorption of question matters for a semipermanent holder, adjacent if the output is humble today.

Read Entire Article