Artificial intelligence (AI) has been a focal point in the investing community, given the massive amount of capital being invested in this industry, coupled with its huge potential, . There are a lot of businesses in the stock market that might catch your attention, but one stands out above the rest.
This company, a technology powerhouse with a $4 trillion market cap, is the ultimate AI stock to buy with $1,000. Here's one reason why.
Image source: Alphabet.
Alphabet has a presence in all phases of AI development
Any investor who wants AI exposure needs to take a closer look at Alphabet (GOOGL 1.43%) (GOOG 1.52%). It has long been a dominant force in the internet age and is poised to be a leader in the AI age. It has a presence in AI research, chip development, and cloud computing (with its Google Cloud Platform).
What's more, Alphabet's Gemini large language models (LLMs) support an app that has 650 million monthly active users. The company's numerous platforms, like Search, YouTube, and Gmail, among others, integrate AI-powered tools to improve the user experience. In addition, AI helps Alphabet boost outcomes for its advertising customers.
NASDAQ: GOOGL
Key Data Points
The valuation isn't expensive
It's a good idea if investors act with a sense of urgency. Alphabet shares currently trade at a forward price-to-earnings ratio of 29.3. I don't view this as being an expensive valuation, especially when you understand that the company posts double-digit earnings growth on a consistent basis.
