One tech titan possesses an edge over its digital advertising rival.
Tech companies Alphabet (GOOGL 0.17%)(GOOG 0.22%) and Meta Platforms (META +0.32%) dominated digital advertising over the last decade. Now, they’re setting their sights on doing the same in artificial intelligence.
Both are spending massive sums to possess potent AI capabilities. For instance, Meta is building a data center the size of a city to house the equipment needed for its AI systems.
With each in a position to replicate past successes in the AI age, which is a better investment for the long haul? Alphabet looks like the superior choice, and here’s why.
Image source: Getty Images.
Alphabet’s advantages
Both Alphabet and Meta are enjoying excellent revenue growth. In 2025, Alphabet’s full-year revenue totaled $402.8 billion, up 15% over 2024’s $350 billion. Meta’s 2025 revenue reached $201 billion, a 22% increase over the prior year’s $164.5 billion.
But what gives Alphabet the edge comes down to its more diversified business portfolio. Although advertising comprises 73% of its revenue, contributing $294.7 billion of 2025’s $402.8 billion, that’s lower than Meta’s near-total reliance on ads, which generated $196.2 billion, or 98%, of its $201 billion in sales.
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Also, Alphabet’s other businesses are expanding. Its Google Cloud division saw 36% year-over-year growth to $58.7 billion, thanks to businesses using the service to adopt AI. This provides a significant tailwind for Google Cloud’s continued expansion.
Adding to Google Cloud’s strengths, Alphabet created custom semiconductor chips to optimize AI system performance. Meta had reportedly considered buying these chips.
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AI is also contributing to Google’s search engine growth. According to Alphabet CEO Sundar Pichai, “Search saw more usage in Q4 than ever before.”
This demonstrates the company’s AI tech is a success, while validating that Google’s leadership remains intact after OpenAI-owned ChatGPT was once considered a threat to its search engine supremacy.
Add Alphabet’s AI-powered Waymo self-driving car business to this mix, which is expanding internationally this year, and the Google parent looks well positioned for AI dominance over the next decade, making it a compelling stock to own.
