Jim Cramer Discusses Alphabet in Light of AI Race

Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks Jim Cramer shed light on. During the episode, Cramer called Sundar Pichai, “visionary CEO of Alphabet,” and said:

“Last night, I listened to Sundar Pichai, he’s the visionary CEO of Alphabet, talk about AI and how much it means to his company. I’ll just give you one quote here, ‘AI is positively impacting every part of the business, driving strong momentum. This quarter, Search delivered double-digit revenue growth.’ But then he goes on to say, ‘AI Overviews now has over 2 billion monthly users across more than 200 countries and territories and 40 languages.’

Now, if you don’t use Google, these AI Overview gives you the summary that appears at the top of the search pages. It’s a game-changer that makes people want to keep coming back to Google Search, even as many like me worry that Search may go the way of the dodo. I mean, why do you search, I figure, when you can just go right to one of the major chatbots, avoiding Google Search entirely? They’re not, they’re going there more than ever. Pichai explains they’re not mutually exclusive. It’s easy to just stick the AI results in there because, well, he’s got the leading global network of AI-optimized data centers.

In other words, he who spends the most money on AI wins. I am sure we’ll hear something similar next week from Meta and Microsoft and Amazon… So my take is that Google is upping its spending because the most accurate chatbot will be the winner, just like how Google Search won to begin with. The bots that are wrong too often will lose. And just like Google Search, if you win the AI race, you can end up with a near monopoly and hundreds of billions of dollars in profits.”

Alphabet (NASDAQ:GOOGL) provides a wide range of digital products and services, including advertising, cloud computing, and enterprise collaboration tools. The company also invests in ventures involving healthcare and advanced internet technologies.

While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.