Everyone’s worried that AI chatbots will kill Google Search. That hasn’t happened. In fact, Q4 Search usage hit its highest level ever, and AI Mode queries are running 3x longer than traditional searches — meaning people aren’t abandoning Google, they’re going deeper into it. Meanwhile, Google’s Cloud division grew 48% year-over-year and ended the quarter with a $240 billion backlog. That’s not a company losing to AI — that’s a company being turbocharged by it.
Then there’s the chip angle, which almost nobody is talking about. Google has been quietly building out its own Tensor Processing Units (TPUs) as an alternative to Nvidia’s GPUs. Alphabet has a long-term deal with Broadcom running through 2031 to manufacture these chips — and Anthropic (yes, the company behind Claude) has committed to running 3.5 gigawatts of compute on Google’s TPU infrastructure starting in 2027. When your competitor’s AI is running on your chips, that’s a different story than the one the market has been telling.
YouTube is another piece the market consistently underprices. The platform crossed $60 billion in revenue in 2025, surpassing Netflix. Not bad for a property that people still treat as “just video.”
The market has spent months discounting Alphabet on fears about search disruption, regulatory pressure, and competition. Those fears haven’t materialized in the numbers. With the stock trading at a forward P/E well below its Big Tech peers, GOOGL may be one of the better setups in a market full of uncertainty — a dominant business hiding in plain sight while the crowd chases flashier names.
