Alphabet (NASDAQ:GOOGL) has planted itself firmly in the middle of many a portfolio over the years. Though it has a history of delivering strong growth, that’s not to say that its upward trajectory has remained linear throughout.
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Indeed, GOOGL’s share price tumbled during the early parts of 2025, as overall macroeconomic fears (along with massive AI capex spending) worried investors. The past six months have been a different story, and GOOGL’s share price has risen by some 65% during that period.
Improving sentiment throughout the market certainly played a part, of course. But there’s also been ample evidence that the company has turned into an AI-powered powerhouse.
And yet, despite the solid performance during the last half year, top investor Adam Spatacco believes that there’s still more gold left to mine.
“Alphabet remains largely overlooked relative to its cloud and internet peers,” explains the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.
While it might lack some of the pizazz of other major players in the tech sector, Spatacco argues that GOOGL is very likely the AI company with the biggest presence in most of our lives. In fact, the company’s wide range of products can be felt throughout both our professional and private activities.
“With one of the strongest data moats and balance sheets in tech, Alphabet isn’t just adopting AI; it’s redefining how the world interacts with it,” emphasizes Spatacco.
Looking at the company’s current valuation, Spatacco posits GOOGL remains available on the cheap. For instance, looking at the Forward Price-to-Earnings ratios for Nvidia (40.63x), TSMC (28.51x), and GOOGL (25.48x), one discovers that Alphabet possesses the “most modest multiple” among these three AI leaders.
In other words, according to the investor, GOOGL could be a promising opportunity.
“It may be undervalued relative to its broad, diversified exposure to AI across many use cases and applications,” sums up Spatacco. (To watch Adam Spatacco’s track record, click here)
Wall Street appears to agree. With 30 Buys and 8 Holds, GOOGL enjoys a Strong Buy consensus rating. GOOGL’s 12-month price target of $261.53 implies an upside of ~4% 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.