Investing in technology companies can be a great way to generate strong long-term returns. There are some very disruptive, innovative, and dominant businesses in this sector, and investors would be wise to take a closer look to find any potential opportunities.
With that being said, here's the smartest tech stock to buy with $1,000 right now.
Image source: Alphabet.
This business is an AI powerhouse
Alphabet (GOOGL +0.06%) (GOOG 0.05%) is a top choice for tech-stock investors. The company is a leader in artificial intelligence (AI), just releasing its latest Gemini 3 Pro large language model, which has been very well-received. Alphabet also makes chips, runs a thriving cloud platform in Google Cloud that is very profitable and growing rapidly, and integrates AI into its user-facing apps.
Alphabet has long dominated the internet age. Its crown jewel segment, Google Search, represented 55% of overall Q3 revenue. And it benefits from a tremendous network effect, which makes it extremely difficult to disrupt.
NASDAQ: GOOGL
Key Data Points
The valuation remains reasonable
Even with the stock up 69% in 2025 (as of Nov. 26), the valuation is reasonable, at a price-to-earnings ratio (P/E) of 31.5. For this valuation, investors are getting one of the most financially sound enterprises on Earth, as Alphabet raked in $24.5 billion in free cash flow last quarter and has $98.5 billion in cash, cash equivalents, and marketable securities on the balance sheet.
Buying $1,000 worth of Alphabet stock may be a very good move.
