This Is the One AI Stock I Can’t Stop Buying
This Is the One AI Stock I Can’t Stop Buying
Vandita JadejaSun, July 5, 2026 at 2:20 PM UTC
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GOOG crushed Q1 estimates 94% while Cloud revenue surged 63% and GenAI product revenue grew nearly 800% year over year.
Surging CapEx now guides to $185 billion for 2026, but a $460 billion Cloud backlog signals customers are lined up faster than Alphabet can build.
Alphabet trades at a forward P/E of 25 while bundling a search giant, cloud platform, AI lab, video network, and robotaxi service in one ticker.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut. Grab the names FREE today.
I keep buying Alphabet (NASDAQ:GOOG) because every quarter it hands me a new reason to. This is the one AI position where the receipts arrive on schedule, the moat is visible in the numbers, and the price still lets me add without holding my nose. I am compounding into a business that is now printing cash on a scale most companies will never approach.
Google owns the front door to the internet and is turning that traffic into an AI toll road while the rest of the industry is still building on-ramps.
When Sundar Pichai said on the Q1 call, "We are genuinely differentiated. We're unique in the market because of our vertically optimized AI stack", I read it as a description of the income statement. Custom TPUs, Gemini models, Cloud, Search, YouTube, Android, Waymo. One company, one stack, one cash engine.
The numbers that keep my finger on the buy button
Q1 2026 EPS came in at $5.11 against a $2.63 consensus, a 94.10% beat and the fourth consecutive EPS beat. Revenue hit $109.90 billion, up 21.8% year over year, with operating income at $39.70 billion and a 36.1% operating margin. Full year 2025 revenue crossed $402.84 billion for the first time. Return on equity sits at 38.9%.
Google Cloud revenue grew 63% year over year to $20.03 billion, and backlog nearly doubled quarter on quarter to over $460 billion. Cloud operating margin expanded from 17.8% a year ago to 32.9%.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut. Grab the names FREE today.
Gemini is running at 16 billion tokens per minute through the API, up from 10 billion the prior quarter, and GenAI product revenue grew nearly 800% year over year. This is enterprise money landing.
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Alphabet raised its quarterly dividend 5% to $0.22 per share, sits on $38.06 billion in cash against $478.75 billion in shareholders' equity, and trades at a trailing P/E of 27 and a forward P/E of 25. Fifty-eight buy ratings, zero sells.
The stock is up 98.71% over the past year and 13.65% year to date, and I am still adding.
The risk I am not glossing over
The real concern is capital intensity. CapEx more than doubled year over year to $35.67 billion in Q1, and management now guides 2026 CapEx to $180 billion to $190 billion, with 2027 expected to increase further. Free cash flow fell 46.63% year over year to $10.12 billion. If AI demand cools before those data centers are paid for, the return on that spend gets ugly.
That $460 billion Cloud backlog is a signed answer to the demand question. CFO Anat Ashkenazi called it "unprecedented internal and external demand for AI compute resources", and Pichai flatly said the company is "compute constrained". When customers are lined up and you cannot ship fast enough, spending is a moat.
GOOG Price Scenario — 24/7 Wall St.
Search revenue still grew 19% to $60.40 billion, paid subscriptions crossed 350 million, and Waymo is doing over 500,000 fully autonomous rides per week. I own a search company, a cloud company, an AI lab, a video platform, and a robotaxi operator inside one ticker at a market multiple. That is why I cannot stop buying.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut. Grab the names FREE today.
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Source: “AOL Money”
