This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL), Google’s search, cloud and artificial-intelligence giant, gained approximately 0.4% to $346.155 Monday afternoon while the Nasdaq and semiconductor stocks sank. That split matters. Investors were dumping expensive chip names but still buying an AI powerhouse already turning the technology into serious revenue.
The engine is roaring. Second-quarter revenue surged 24% to $119.8 billion, while Google Cloud revenue exploded 82% to $24.8 billion. Cloud backlog ballooned to $514 billion, giving Alphabet a massive runway as companies race to build and deploy AI workloads.
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But this is no bargain-bin stock. Alphabet’s $346.155 share price sits 38.2% above its $250.48 GF Value estimate, showing just how much optimism is already baked in. Regulatory heat, relentless infrastructure spending and the risk that AI assistants disrupt traditional search still hang over the story. Monday’s move says investors see those threatsand are buying anyway.