What a difference a few seasons can make, something that investors in Alphabet (NASDAQ:GOOGL) can certainly appreciate. Just a short time ago it seemed that the market was ready to move on from Alphabet, as fears of AI-powered LLMs were going to make the company’s search engine primacy a relic of the past.
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The recent launch of Gemini 3 provides yet another piece of evidence against that outdated argument. Gemini 3, Alphabet’s most recent AI version, has already planted its flag among the industry leaders, with CEO Sundar Pichai calling it “our most intelligent model.”
The company’s AI Overviews now have 2 billion users every month, while the Gemini app has 650 million users every month. Clearly, Alphabet is well-placed as the AI battle heats up.
Actually, maybe not. Investor Luca Socci is convinced that this competition has already been settled, with a clear winner emerging victorious.
“As early as this may sound, I want to argue that the AI war is already over and that Alphabet has won,” explains the 5-star investor.
Socci further details that the sheer size and scale of Alphabet give it an almost insurmountable advantage over its peers. The investor also points out that the company’s wide breadth might have actually slowed its start in the AI race, as it couldn’t take the risk of disrupting billions of people by unveiling tools or technology that weren’t fully ready for prime time.
“Alphabet’s starting point in the AI-race is already years ahead of its competitors because it begins with a fully integrated ecosystem,” adds Socci. “Alphabet benefits from its massive distribution advantage, which will probably lead to rapidly increasing usage numbers quarter after quarter.”
As AI continues on its progression, Socci argues that it will become more of a commodity that will appear “pretty much everywhere.”
“AI is no longer a product, but another feature of the larger internet experience we have daily,” concludes Socci. “This is the business model with the highest likelihood of success.”
Not surprisingly, it’s a Buy for Socci. (To watch Luca Socci’s track record, click here)
Wall Street feels much the same way about Alphabet. With 31 Buys and 7 Holds, GOOGL enjoys a Strong Buy consensus rating. Its 12-month average price target of $312.00 points to limited movement in the year ahead. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.