Overview
- AI-linked shares have helped drive the S&P 500 to repeated records, but many now trade at rich valuations.
- The latest analysis spotlights two bargain opportunities within AI leaders, with Alphabet presented as a standout.
- Alphabet trades at roughly 27 times forward earnings, positioned as one of the cheaper Magnificent Seven stocks.
- Google advertising revenue rose about 12% to $74 billion and Google Cloud revenue climbed 34% to $15 billion in the most recent quarter.
- Alphabet posted its first $100 billion quarter, reinforcing the case that AI-fueled demand could keep boosting growth.