We recently published 10 Buzzing AI Stocks to Watch in September. Alphabet Inc. (NASDAQ:GOOG) is one of the stocks to watch in September.
Mark Mahaney, Evercore ISI head of internet research, said in a CNBC program on August 20 that Google is one of the top beneficiaries of the GenAI wave. The analyst also praised Google’s YouTube and Waymo businesses.
The play here really is Gen AI and whether Google is roadkill or the whatever the opposite of roadkill is. And I think they’re the opposite of roadkill,” Mahaney said. “I think that’s been the issue on the stock and I think they’re going to be able to prove that in fact they’re one of the best beneficiaries, largest derivatives of of the growth in in Genai. I think you’re seeing that in their search results. I think you’re seeing that that have been consistently double digit despite all of the focus on the rise of chat GPT. I think you’ve seen that in YouTube and you’re certainly seeing it and maybe the best physical manifestation of AI out there. It’s probably not the smartphone, it’s the car with with Waymo. So look, I I we’ve had a big rally in Google stock. It’s up 25%. Over the last last couple of months, but valuation is still, I think, very attractive at 18 19 times earnings.”
Alphabet Inc. (NASDAQ:GOOG) bulls believe concerns around AI-related threats to Google search are overstated. Google has an edge over competitors because it’s easier for the billions of users of its search engine to switch to Gemini instead of opting for a completely new model. As of April, Google had over 1.5 billion monthly users interacting with its AI-powered Search overviews.
Google’s competitor OpenAI failed to impress the market with its GPT-5 model, while Gemini is gaining traction with new features. Analysts believe the company is strongly positioned to start placing ads in AI search results, which means its core ads business will not be impacted despite the decline in traditional search.
Pershing Square Holdings stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its second quarter 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, is successfully executing on its vast AI potential. The company’s key advantages – stemming from industry-leading models, a full-stack approach to technical infrastructure (including proprietary chips), access to high-quality data, rapidly improving product launch velocity and a robust distribution ecosystem of seven different apps with over two billion users each – are beginning to meaningfully widen Google’s moat and competitive differentiation in AI.
