If you want to get more AI exposure in your portfolio, there are many options. You have hardware manufacturers, starting with the market leaders NVIDIA. AI infrastructure companies, including Anke Groupwhich provides the data centers and components needed to train large language models (LLMs). There are AI software companies and enterprises at every layer of the AI stack.
Or you could invest in a company that does it all letter (Nasdaq: Google)(Nasdaq: Google)Google’s parent company. While I’m bullish on several AI companies, if I were to put $5,000 into one stock, I would choose Alphabet.
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Alphabet is a rarity in the tech world in that it controls the entire artificial intelligence stack. It has its own artificial intelligence data center and is in the process of expansion, with capital expenditures expected to reach $175 billion to $185 billion by 2026. The company develops the tensor processing unit (TPU), a custom artificial intelligence accelerator chip that Google has used since 2015. It has its own AI model, Gemini, and can easily distribute AI tools through Google’s existing business.
This full-stack approach arguably puts Alphabet in the best position among AI companies. It can better control costs, avoid dependence on other companies, and optimize its TPUs for Gemini models. This approach has allowed Alphabet to increase efficiency while increasing scale. For example, it reduced Gemini service costs by 78% in 2025.
Alphabet also had a very successful 2025. Revenue increased 15% year over year to $402.8 billion, which is decent growth for a company that’s already a tech giant. Google Cloud performed well, with revenue in the segment growing 34% to $58.7 billion. Google Cloud also has $240 billion in backlogged revenue, indicating strong demand for Google’s enterprise AI infrastructure.
On the consumer side, Gemini 3 is a major step forward, putting Google’s AI assistant on par with OpenAI’s ChatGPT and Anthropic’s Claude. Alphabet CEO Sundar Pichai reported last month that the Gemini app has 750 million monthly users. by with appleGemini will also help support the Siri voice assistant on Apple devices.
I wouldn’t say investing in Alphabet stock is cheap, but it also doesn’t have sky-high valuations like many AI companies. As of March 9, the stock’s earnings ratio was 28 times, lower than that of technology stocks Nasdaq 100its price-to-earnings ratio is 36 times.
