Usman Salis
⬤ Alphabet's Class A shares have jumped 66% year-to-date and nearly 89% over the past year, making it one of the strongest performers in big tech. Despite this momentum, the company still trades at around 21 times earnings—the lowest valuation among the Magnificent Seven. Market data shows GOOGL trading well above its 52-week lows with improving relative strength.
⬤ With a market cap exceeding $3 trillion, Alphabet is outperforming most large-cap peers across both short and long-term windows. The company's valuation discount is striking given its deep presence across the entire AI value chain—from accelerator hardware and cloud infrastructure to foundation models and consumer applications. Few competitors match this level of vertical integration.
⬤ Google operates proprietary TPU accelerators, the Gemini AI suite, and massive data center infrastructure through Google Cloud. This full-stack control—from chips to deployment—gives the company a structural edge in scaling AI workloads. Analysis confirms Google maintains a strong foothold in nearly every segment of the modern AI ecosystem.
⬤ The combination of strong stock performance, comprehensive AI capabilities, and relatively modest valuation continues shaping expectations around sector leadership. Alphabet's ability to expand its chip technology, foundation models, and application ecosystem while maintaining financial discipline keeps it at the center of the AI transformation.
Usman Salis
