Google is the best stock on the market and it’s not even close

Google is absolutely positively the best stock on the market right now and it isn’t even close. One year ago Google was getting torn up given reports of AI taking over search and them lagging in the AI chatbot space.

Although that has all changed as now Gemini has emerged as the favorite in the space. This is due to a few key reasons:

AI Laggard: Investors had highly doubted Google’s ability to build a chat model. These doubts have been quelled as the company by far has the most data to train their models given their dominance in search and video. This has propelled Gemini into a strong long term favorite.

Competitors Shift: Open AI has chosen to focus more heavily on corporate clients, which has caused them to cut costs in the consumer space. Therefore Chat GPT’s quality has struggled, prompting a perfect opportunity for someone to take market share within the consumer chatbot space. Suffice to say, Google (along with Anthropic) has leaped on this opportunity.

Infrastructure: Google has chosen to run and train their models on their in house built TPU’s. A risky yet bold decision given most models run on GPU’s. On one hand, Google through this does not need to rely on Nvidia or AMD to get their chips, allowing them to stay out of a lot of drama revolving GPU demand. On the other, if Google can prove TPU’s deliver lower cost per token, they will not only completely change the AI landscape but can find themselves challenging the likes of Nvidia in space. This second part remains to be unseen.

Elsewhere Google still remains one of the best names in cloud, YouTube still dominates streaming, and Waymo is overtaking the FSD ride share market.

Investors only concerns are their massive capital expenditure. This concern is blasphemy as AI will require large investments eventually so best they show it now. Investors are fine dumping money into AI but as soon as those companies they are pouring money into begin investing in the infrastructure needed, it becomes a problem to investors. Wall Street seems to have a hypocrisy problem when it comes to AI investment.

Overall, Google has shown its ability to step to the plate in AI while maintaining consistent growth in other areas of the business. 28 years ago, Google was founded and quickly became a disruptor. Today, they enter a whole new chapter with AI and have already shown ability to be the disruptor everyone knows them to be. Investors would be remised not to bet on Google’s ability going forward.