The artificial intelligence (AI) train is barreling ahead at full speed, but there are a couple of areas of concern. The market could respond negatively if concerns are confirmed, but the long-term outlook remains bright.
Alphabet has rapidly gained market share in the AI space with its Gemini LLM. Start-up rivals Anthropic and Open AI are leading for now, but they lack Alphabet's resources; neither is set to turn a profit anytime soon.
Quantum computing could be a game changer as it may solve problems deemed impossible today. Both cautious and aggressive investors may find quantum computing stocks to suit their styles.
The strong bullish sentiment surrounding Alphabet (GOOG) is well supported by a multitude of catalysts. GOOG's TPU v7 advancements and Apple collaboration position it to capture meaningful AI chip and software market share. Yet valuation remains reasonable, with FY1 P/E and PEG ratios around the average of mega-cap tech peers.
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