AI sets up Alphabet for new growth

Article Excerpt

Alphabet’s class A shares hit a new all-time high of $207 in February 2025, but they have dropped 16% since then. The decline is largely due to the company’s plan fpr a 40% increase in spending on new datacentres (to power its artificial intelligence products). However, these outlays will help Alphabet compete with other AI offerings from rival online platforms. Ultimately, the spending is meant to protect the company’s dominance in the Internet search market, particularly as advertisers continue to shift away from traditional TV and print ads. What’s more, new innovations, such as computer chips powered by quantum technology, could become a hugely profitable business in the next decade. ALPHABET INC. is a buy for aggressive investors. The holding company (Nasdaq symbols GOOG $175 [class C: non-voting] and GOOGL $173 [class A: one vote per share]; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 12.2 billion; Market cap: $2.1 trillion; Price-to-sales ratio: 6.2; Dividend yield: 0.5%; TSINetwork Rating: Above Average; www.abc.xyz) is the parent…