Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n While smaller AI companies have high revenue growth but burn through money, Alphabet delivers healthy profits while expanding in key markets. It reported almost $130 billion in operating income<\/a> in 2025 and started 2026 strong with $39.7 billion in operating income, which was a 29.7% year-over-year improvement. <\/p>\n Alphabet is best-known for Google Search and YouTube. These two websites continue to attract billions of users each year while delivering high-margin online advertisements. Google Services revenue increased by 16% year over year, showing that this segment is still growing. <\/p>\n Google Cloud stole the show in Alphabet’s Q1 2026 earnings, with a 63% year-over-year growth rate. Google Cloud has become a vital part of enterprise AI infrastructure, and its accelerated growth rate is a clear example of Alphabet generating a positive ROI from its AI investments. Overall revenue was up 22% year over year. <\/p>\n Alphabet has exciting AI opportunities that are in their early stages <\/p>\n Google Search, YouTube, and Google Cloud are the main revenue drivers, but Alphabet is tapping into exciting opportunities that could translate into meaningful revenue growth in future quarters. <\/p>\n Gemini has already been well-received as Google’s AI model. Gemini Enterprise experienced 40% sequential growth in the number of paid monthly active users, once again showing a real connection between AI investments and additional revenue. <\/p>\n Waymo is another exciting AI start-up that is within Alphabet’s corporate profile. Alphabet’s Q1 press release touted Waymo’s achievement of surpassing 500,000 fully autonomous rides per week. Self-driving vehicles could transform transportation and become a meaningful revenue compounder once autonomous rides become more mainstream. <\/p>\n When Alphabet embraces a new AI opportunity, there isn’t much worry about whether Alphabet will go bankrupt or never realize a profit. The company is loaded with cash, especially after an $84.75 billion equity capital raise designed to expand AI infrastructure and compute. <\/p>\n To top it all off, Alphabet still has a compelling valuation. Its price-to-earnings (P\/E) ratio of 25.5\u00a0is lower than the S&P 500’s, despite Alphabet growing faster than most of the companies in the famed index. Alphabet shares are down by almost 20% from all-time highs, and this dip has created a tremendous buying opportunity for investors who want to hold the stock for the next 10 years. <\/p>\n Should you buy stock in Alphabet right now? <\/p>\n Before you buy stock in Alphabet, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $385,055!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,228,089!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 902% \u2014 a market-crushing outperformance compared to 209% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 2, 2026. <\/p>\n Marc Guberti<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. Alphabet offers revenue and profits right now <\/p>\n