Artificial intelligence (AI) stocks soared over the past couple of years amid excitement about how this technology could transform the world — from making our daily tasks easier to making companies more efficient and spurring groundbreaking discoveries. Investors aimed to get in during the early days of the boom and benefit from the entire growth story.
But in recent weeks, concerns about the general economy have overshadowed enthusiasm about the AI boom. President Donald Trump announced his intention to impose tariffs on imports, and stocks tumbled — the concern is such tariffs would result in higher prices at home, and this would hurt both the consumer and companies.
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As a result, some of the world’s best AI companies saw their stock prices fall. But there’s a silver lining in this dark cloud, and that’s the fact that many quality players, following these declines, today are trading for bargain prices. In fact, one in particular may offer you a once-in-a-decade buying opportunity at its current level. It’s an AI giant that Wall Street expects will climb in the double-digits in the coming 12 months. Let’s check it out.
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90% market share
This company is one you probably know well, but you may not immediately associate it with AI. Instead, you may think of this player every time you search for something online. I’m talking about Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the owner of Google Search — the world’s most popular search engine with a market share of about 90%.
Thanks to this market dominance, Alphabet has built a strong source of revenue — advertising. Advertisers are eager to showcase their products and services on Google because they know it’s the ideal place to reach us, their target audience. This has helped Alphabet generate billions of dollars in revenue year after year. And now, the company’s work in AI is supercharging this revenue source and boosting revenue at its Google Cloud business.
Alphabet has gone all in on AI, developing and using it in many ways, from building out infrastructure to designing a large language model — Gemini — and using this model to power a variety of tools and products. The company has used its AI strengths to improve search and improve advertising results. For example, when you use Search, AI Overviews offers you links to help you deepen your research, and AI is helping advertisers better target the right audiences. All of this over time could strengthen Alphabet’s relationship with advertisers and prompt them to spend more.
Double-digit cloud revenue growth
On top of this, Alphabet is seeing great gains in Google Cloud because of the wide variety of AI products and services it offers customers. In the first quarter, Google Cloud revenue advanced 28%, driven by AI infrastructure and generative AI solutions. Customers come to Alphabet to access top Nvidia chips — Alphabet was the first cloud provider to offer Nvidia Blackwell chips — as well as Alphabet’s own chips and a wide range of services.
Even with the risk of an economic slowdown ahead, Alphabet still reiterated its plan for $75 billion in capital spending this year, with much of this intended to support AI.
Wall Street also is optimistic about this AI player, with the average analyst forecast calling for a gain of 26% in the share price over the coming 12 months.
The cheapest of the Magnificent Seven
And right now, this company that’s shown it can be an AI winner is trading for only 16 times forward earnings estimates, making it the cheapest of the Magnificent Seven stocks by this measure.
GOOG PE Ratio (Forward) data by YCharts
The Magnificent Seven are a group of tech innovators that led last year’s stock market gains, but this year they have significantly contributed to declines. Since tech stocks are most vulnerable when economic times are tough and these stocks rely on production abroad, they clearly could be hurt by Trump’s tariff plan.
But it’s important to keep in mind that Alphabet has the financial strength to manage difficult times and the company’s long-term prospects still are extremely bright. All of this makes Alphabet an ideal stock to buy right now and hold onto for the long term — and considering Alphabet has what it takes to soar, today’s dirt cheap price may represent a once-in-a-decade investment opportunity.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
