Prediction: This Will Be the Best AI Stock to Own for the Next 5 Years

Alphabet (GOOG 2.29%)(GOOGL 2.42%) could be the hottest artificial intelligence (AI) stock on Wall Street right now. Shares have climbed by 68% over the past year, a staggering feat for a stock already worth a trillion dollars.

But even after all that success, it still leaps off the page as arguably the best AI stock investors can buy and hold for the next five years. Predicting that Alphabet will continue to win tremendously in AI moving forward may not be a bold statement, but you don’t always need to go off the board to make a lot of money.

Here is why Alphabet is the no-brainer AI stock to own now and for the future.

Image source: Getty Images.

Alphabet’s dominance of the Internet economy is an overwhelming AI advantage

Alphabet’s dominance goes well beyond Google Search. Alphabet’s YouTube is the leading streaming service. Products like Gmail, Sheets, and Chrome have billions of users. Nearly three-quarters of the world’s smartphones operate on Alphabet’s Android software.

All those products and services generate mountains of first-party data that are helping Alphabet win in AI. Its deep pockets allow it to move quickly and aggressively invest to support its growth opportunities. It’s tough to compete with Alphabet when you stack all of these advantages.

The latest earnings report offered a glimpse into the future

Integrating AI into all these products and services is only strengthening them further, and the results show in Alphabet’s latest earnings.

It seems like a distant memory, but investors once feared that AI would ruin Alphabet’s core ads business by disrupting search engines. Revenue from Google Search soared by nearly 17% year over year, finishing 2025 at a whopping $224.5 billion, up from $175 billion in 2023.

Growth in its Google Cloud segment is accelerating. Fourth-quarter cloud revenue came in at $17.66 billion, nearly 48% higher than a year ago. Gemini AI now has over 750 million monthly active users. Finally, Waymo, its autonomous ride-sharing business, just raised $16 billion at a $126 billion valuation to fund expansion into more than 20 new cities.

Today’s Change

(-2.42%) $-7.72

Current Price

$310.86

Key Data Points

Market Cap

$3.9T

Day’s Range

$309.66 – $321.01

52wk Range

$140.53 – $349.00

Volume

2M

Avg Vol

38M

Gross Margin

59.68%

Dividend Yield

0.26%

Look far ahead to see Alphabet’s compelling value

Analysts estimate that Alphabet’s earnings will grow by almost 16% annually over the next three to five years. With shares trading at 28 times this year’s earnings estimates, Alphabet could still be a game changer for your portfolio over the next five years and beyond.

Is there a catch? Perhaps. Investors may not see immediate returns. The stock has enjoyed a red-hot run over the past year, so it shouldn’t surprise anyone if shares take a breather. Still, it’s going to be hard to keep the stock down for long if Alphabet continues to deliver companywide growth, as it did in its fourth-quarter earnings.