Alphabet (GOOG) is Among the Best AI Stocks to Buy According to Reddit

We recently published 10 Stocks Everyone’s Talking About As AI Investments Continue. Alphabet Inc (NASDAQ:GOOG) is one of the stocks analysts were recently talking about.

Wall Street analysts have long been calling Alphabet Inc (NASDAQ:GOOG) an undervalued AI play. However, the stock seemed to be under the influence of two key overhangs: AI-related threats to Google search and antitrust proceedings against the company. But with the recent court ruling largely in favor of the company, the stock is rising, and many believe it has more room to run.

We recently surveyed some of the most popular discussion boards on Reddit to see what retail investors are buying. One of the most popular stocks Redditors are buying these days is Alphabet Inc (NASDAQ:GOOG). Our research is based on investing-related discussions on subreddits like r/Investing and r/Stocks.

Google

Google has an edge over competitors because it’s easier for the billions of users of its search engine to switch to Gemini instead of opting for a completely new model. Google has over 1.5 billion monthly users interacting with its AI-powered Search overviews. OpenAI, Alphabet’s biggest competitor now when it comes to AI search, has less than 5% of its users paying, and its business model is still developing.  Google’s first-quarter results showed continued strength in its cloud unit, with revenue up 28% year over year and solid operating income growth. This supports Google’s broader AI strategy and underscores the scale advantages of its cloud business.

Lakehouse Global Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its second quarter 2025 investor letter:

“We’ll wrap things up with Alphabet Inc. (NASDAQ:GOOG) , which in similar fashion to Hemnet, only experienced a marginal share price decline over the year. That said, Alphabet did meaningfully underperform our average portfolio return as concerns that it’s near monopolistic position in Search (which generates the majority of their advertising revenue) could be eroded by new Artificial Intelligence (AI) alternatives like ChatGPT and Perplexity. When it comes to the potential risks AI poses to the dominance of search, our view is a balanced one. No doubt uncertainty has increased but we believe Alphabet remains well positioned through its massive user distribution (9 products with over 1 billion users each) and long-standing investments and leadership in AI (DeepMind and Google Brain).

Story Continues

While we acknowledge the potential of GOOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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