AI, Quantum Computing, and Self-Driving Taxis: Discovering One "Impressive Seven" Share That Encompasses It All
Investing in cutting-edge technologies like artificial intelligence (AI), quantum computing, and autonomous ride-hailing services (robotaxis) could bring massive returns over the next decade. Instead of buying multiple stocks, consider the "Magnificent Seven" stock, Alphabet (GOOG, GOOGL), which excels in these areas.
Checking off the Boxes
Alphabet has been at the forefront of AI innovation for years. Its researchers developed transformers, the building block of today's large language models like ChatGPT. Google Gemini is among the most powerful AI models available. Alphabet offers a wide range of AI tools through Google Cloud, and its products, like Google Search, YouTube, and various services, extensively utilize AI.
Quantum computing uses qubits instead of bits, offering the potential for faster information processing. Google recently introduced the Willow chip, a breakthrough in developing a large-scale quantum computer. Alphabet's Waymo leads in offering robotaxi services, already available in LA, Phoenix, and San Francisco, with planned expansions to Austin, Atlanta, and Miami.
Outstanding Among the Magnificent
AI will likely benefit all Magnificent Seven stocks, including Amazon, Microsoft, and Nvidia, which are actively pursuing quantum computing and robotaxi markets. However, Alphabet excels in all areas and has significant advantages, such as leading cash reserves (over $93 billion) and a lower price-to-earnings-to-growth (PEG) ratio than most competitors.
Two potential threats to watch:
- Antitrust lawsuits: In 2024, a judge accused Google of creating an illegal monopoly in the search engine market. Google is appealing the decision, with legal experts believing in a relatively narrow impact.
- Generative AI: There's concern that generative AI could significantly impact Google Search. Yet, Google already incorporates genAI into its AI Overviews, and its search and advertising revenue continue to grow, thanks to the new feature.
Considering Alphabet's leadership in AI, quantum computing, and robotaxis, I believe it's one of the best Magnificent Seven stocks to buy now.
Alphabet's strong financial position, with over $93 billion in cash reserves, makes it an attractive choice for investors looking to invest in cutting-edge technologies. Moreover, by investing in Alphabet, an individual is not only supporting a company at the forefront of AI innovation but also gaining exposure to its advancements in quantum computing and robotaxis.
Investors who acknowledge the potential of technologies like AI, quantum computing, and robotaxis and are seeking a well-rounded investment opportunity in this space might find Alphabet an appealing choice due to its remarkable achievements and future prospects.
