It's hard to fathom the amount of money that's being spent on artificial intelligence (AI) infrastructure. This has become a major contributor to the economy. And it seems the vast majority of businesses on Earth want to leverage these new tools to grow revenue and cut costs.
Investors need to be mindful of what's taking place, figuring out where to allocate capital. Continue reading to find out what AI stock might be the best to own for the next 10 years to take advantage of this growth.
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Meet the comprehensive AI investment opportunity
Investors who want exposure to the entire AI stack should look no further than Alphabet (GOOGL 1.67%) (GOOG 1.76%). The internet pioneer is involved in seemingly every area of the AI industry.
DeepMind is Alphabet's AI research lab. The business is developing its own chips, known as Tensor Processing Units. There's Google Cloud, which just posted 48% year-over-year revenue growth and a stellar 30% operating margin in Q4 thanks to robust demand for AI products and services.
NASDAQ: GOOGL
Key Data Points
Alphabet also has numerous consumer-facing apps that are being enhanced by AI. Its native Gemini app had 750 million monthly active users last quarter. And the company's ad customers, which contribute 72% of its entire revenue base, are better able to target their audiences with AI-powered capabilities.
With shares trading at a reasonable forward price-to-earnings ratio of 28.8, and many years of strong earnings growth ahead of it, this is the leading AI investment opportunity for the next decade.
