Key points
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Alphabet is involved in both the hardware and software sides of the AI industry.
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The hardware and software are used by major competitors such as OpenAI, Anthropic and Apple.
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The company is growing rapidly for its size, is profitable and stable.
There are many companies involved in the artificial intelligence (AI) industry. It can be difficult for an investor to know where to put their money.
But for a one-ticker play to invest in the entire AI industry, Google’s parent company Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) makes a good case for himself.
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After all, it is the only major AI player that spans both the software and hardware sides of the industry through its Google Gemini AI platform and its tensor processing unit (TPU) hardware.
A rendering of a robotic hand projecting a hologram of Ai.
Image source: Getty Images.
Play across the full spectrum
First, let’s talk about Gemini, which has captured a fair share of the market for itself. Since 2023, it has grown from a 7% share of the Enterprise Large Language Model (LLM) market to 21% and will overtake OpenAI’s ChatGPT this year if the trend continues.
The software also forms the basis of Alphabet’s “Magnificent Seven” peer Apple‘s AI program. The partnership turned what could have been one of Google’s biggest competitors into a customer.
On the hardware side of the equation, Alphabet’s TPU hardware represents one of the first real competitors Nvidia‘s graphics processing unit (GPU).
And while Anthropic’s Claude might have a larger share of the enterprise LLM market at 40%, Anthropic announced late last year that it would add more than a gigawatt of computing capacity online with Alphabet TPU chips.
While Claude may compete with Gemini in terms of software, it will run partly on Google hardware. OpenAI also wants to use TPU chips to power its software. So Alphabet is a strong competitor on both sides of the AI game.
It also has the financials you’d expect from Google’s parent company.
Alphabet generated $402.8 billion in revenue in 2025, an increase of 15% from 2024, which is very fast growth considering the sheer size of the company. It also has a net profit margin of 32.8% and a very healthy debt-to-equity ratio of 0.14.
So if you’re looking for a safe, stable, all-in-one AI game, check out Alphabet.
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James Hires has positions at Alphabet. The Motley Fool holds positions in and recommends Alphabet, Apple, and Nvidia, and is short Apple stock. The Motley Fool has a disclosure policy.
