We're in one of those times when market players are shunning crypto investments. Factors such as persistent inflation, a declining likelihood of interest rate cuts (typically a major catalyst for crypto price pops), and outflows from once-hotly popular crypto exchange-traded funds (ETFs) have put the hurt on even the most prominent digital coins and tokens.
Given that, it's worthwhile to consider another high-potential technology -- artificial intelligence (AI). Despite huge growth opportunities ahead, AI has also taken it on the chin lately as well. It still has a bright future, and I believe investors can still hop on this train with a company that's not a pure play, but one deeply -- albeit not exclusively -- involved in the technology.
Read on to see what AI giant I believe can outpace even the most popular cryptocurrencies.
Image source: Alphabet.
Alphabet is advancing AI
That company is none other than Google owner Alphabet (GOOG 1.76%)(GOOGL 1.67%). Although it's still known, with some justification, as a search engine operator, the company has been neck-deep in AI for years. It's developed both hardware and the large language models (LLMs) powered by it, and it clearly aims to be a top name in this technology.
I have no doubt it can succeed. Google's AI component Gemini is now fused into the company's search and many other features (like Google Mail). This makes it a convenient option for web searchers querying for more than basic information on a subject. Its functionalities are also integrated into offerings like Google Docs, where users can harness AI to help with their writing. The Gemini platform itself is a hot item, with a monthly active user count now topping 750 million.
On the hardware front, Alphabet is not only actively developing and deploying Tensor Processing Units (TPUs) -- chips designed to power AI functionality -- it invented them. Originally designed to bolster the company's AI capabilities, the processors are now being sold to external customers, opening another revenue stream.
NASDAQ: GOOG
Key Data Points
AI is a growth catalyst for Alphabet
Alphabet doesn't break out the revenue it derives from AI hardware and services, so we can't put a precise number on how much the technology is bringing in for the company.
Still, it's clearly foundational these days -- the phrase "AI" was mentioned 94 times during management's fourth-quarter and full-year 2025 earnings conference call. And the tech giant stated in the accompanying earnings release that "We're seeing our AI investments and infrastructure drive revenue and growth across the board."
Alphabet's two main revenue buckets, Google Services and Google Cloud -- both of which feature AI-enhanced products -- have seen robust increases. The former's revenue grew 14% year over year during the quarter to almost $96 billion, while the latter's skyrocketed 48% to just under $18 billion.
The numbers don't lie. Even if the economy slows or inflation remains stubborn, demand for Alphabet's impressively large suite of AI products and services will remain strong. I'd feel much more confident parking my money in this AI stock than gambling it on a wobbly cryptocurrency.
