Alphabet surges again today thanks to AI Is the stock a buy?

alphabet (google 2.41%) (GOOG 2.50%) Stocks posted another day of significant gains in Monday trading. Shares of the tech giant ended the daily session up 2.4%, according to data from S&P Global Market Intelligence.

Shares of Alphabet were strong today as the company traded amid a broad-based burst of momentum for large-cap technology stocks heavily exposed to the artificial intelligence (AI) trend. Despite the big gains across 2023 trading, Wall Street appears to be growing increasingly optimistic about the long-term outlook for the market’s biggest AI stocks.

Big Tech’s massive rally continues.

Alphabet’s position as a leading provider of web search services through the Google platform allows it to benefit from artificial intelligence services that improve search and digital advertising results. But the opportunities for companies to benefit from AI are not limited to the Google search platform.

In addition to its market-leading search engine services, Alphabet also holds strong positions in mobile operating system software, cloud infrastructure services, video streaming, and other influential product categories. Alphabet’s diverse and broad ecosystem of products and services offers a variety of ways for the company to benefit from advances in artificial intelligence. The tech giant’s diverse product lines also generate huge amounts of data that can be used to generate valuable insights and improve the performance of AI algorithms.

Is Alphabet stock a buy now?

Alphabet stock is already up about 54% in 2023 trading, but that doesn’t mean long-term investors should ignore the stock. The company still trades at a reasonable earnings multiple, and could deliver strong returns for those taking a buy-and-hold approach at current prices.

GOOGL P/E ratio (forward 1 year) data provided by YCharts.

Valued at about 20 times next year’s expected earnings, Alphabet stock still has the potential to deliver market-beating gains for patient investors. Thanks to their existing infrastructure and data generation advantages, large technology companies have a huge advantage in the AI ​​race.

It’s yet to be seen to what extent Alphabet will be able to leverage these strengths, but the company’s position in artificial intelligence and the broader tech industry continues to look very strong. For long-term investors looking for ways to capitalize on AI and technology trends, Alphabet stock looks like a worthy portfolio addition, even after its recent rally.