Top AI Stock Bargain: Alphabet

There's a compelling argument that artificial intelligence (AI) firms have garnered significant attention recently. Some are relatively new, while others are well-known big tech entities. Focusing on the big tech stocks because they are typically better suited for long-term viability, Alphabet (GOOG) stands out as one of the best AI bargains available.

Currently, Alphabet's shares are trading at 26.3 times its projected earnings over the next year. This makes it the most affordable among the "Magnificent Seven" stocks. While valuation alone doesn't guarantee a stock purchase, it suggests more potential upside than downside. There's less growth and expectation factored into the stock price, which may buffer against significant declines if those expectations aren't realized.

Aside from its valuation, Alphabet is notable because it is involved in numerous vital aspects of the AI process. Its subsidiary, DeepMind, is responsible for AI research. Alphabet possesses and manages a large number of data centers, which are crucial for AI training and scaling. The company also provides consumer AI applications like Gemini, a generative AI tool, and Flow, a filmmaking tool. Alphabet's involvement in various components of the AI pipeline gives it greater control over innovation and integration and reduces its dependence on external parties.