Everyone assumes AI chatbots are eating Google’s lunch. Ken Fisher apparently disagrees — to the tune of $11.93 billion.
Fisher’s firm holds one of its largest positions in Alphabet (NASDAQ: GOOGL), ranking it 5th in his AI-focused portfolio. And the case for it isn’t built on blind faith in a legacy brand. It’s built on a number that doesn’t get nearly enough attention: $242.8 billion in remaining performance obligations (RPO) — signed contracts and subscriptions — up a staggering 55% quarter over quarter. That’s not a company in decline. That’s a company accelerating.
Here’s what most bears miss: Google isn’t just defending its search business against AI — it’s monetizing AI inside search in ways that could actually improve margins. Sponsored content can appear inside AI-generated answers. AI recommendations on YouTube are boosting watch time and ad impressions. Gemini, Google’s AI assistant, now has 750 million monthly active users, and the company is testing ads inside AI responses. Early data suggests those ads convert at competitive rates. Meanwhile, AI queries are running three times longer and more specific than traditional search queries, which makes intent-matching more precise — and higher-value ads more justifiable.
The valuation is also reasonable for what you’re getting. GOOGL trades at roughly 25× forward earnings — close to the tech sector average, slightly below Microsoft and Amazon. After the recent selloff, that’s not a premium you’re paying for AI optionality. Google Cloud and Workspace are also pulling in enterprise AI dollars, adding a second revenue lever beyond advertising.
The thesis in one sentence: Google doesn’t have to beat AI — it just has to become AI’s most profitable host. With $242.8 billion already committed and 750 million Gemini users, it’s ahead of schedule.
