Alphabet vs. Meta Platforms: Which AI Stock Will Make You Richer?
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These powerful internet companies are thriving in the age of AI.When it comes to the ongoing artificial intelligence (AI) secular trend, Alphabet (GOOGL 0.73%) (GOOG 0.68%) and Meta Platforms (META +1.77%) are probably two companies that investors think about. Both internet giants have their merits. But which of these AI stocks will make you richer? Image source: Alphabet. Betting on both stocks might be the best move ExpandNASDAQ: GOOGLAlphabetToday's Change(-0.73%) $-2.42Current Price$328.12Key Data PointsMarket Cap$4.0TDay's Range$327.46 - $333.6352wk Range$140.53 - $340.49Volume930KAvg Vol36MGross Margin59.18%Dividend Yield0.25% Analysts expect Alphabet and Meta to grow their revenues by 14.4% and 21.3%, respectively, year over year in 2025. Alphabet's Q3 operating margin was 31%, while Meta's was even better at 40%. It's hard to argue with the belief that owning both stocks might be the best move. It helps their competitive positions that Alphabet and Meta have billions of users accessing their various platforms. Besides the massive advantage that being able to collect and leverage data provides, they possess powerful network effects. This means there is a very low probability that they will get disrupted anytime soon. What's more, Alphabet and Meta are spending huge sums on AI-related capital expenditures in an effort to better serve their users and ad customers. ExpandNASDAQ: METAMeta PlatformsToday's Change(1.77%) $11.49Current Price$659.12Key Data PointsMarket Cap$1.7TDay's Range$644.26 - $666.4052wk Range$479.80 - $796.25Volume1.6MAvg Vol19MGross Margin82.00%Dividend Yield0.32% Take advantage of compelling valuations Both Alphabet and Meta have crushed the S&P 500 in the past five years (as of Jan. 20). However, they don't trade at expensive valuations today. Investors can buy the Google parent at a forward price-to-earnings (P/E) ratio of 29.5. The social media juggernaut's stock, on the other hand, goes for a cheaper forward P/E multiple of 20.8. Over the next five years, these two companies have what it takes to be wonderful portfolio additions. Read NextJan 23, 2026 •By Adria CiminoThe Quantum Computing Stock Smart Investors Are Buying for 2026Jan 23, 2026 •By Prosper Junior BakinyThe Ultimate Growth Stock to Buy With $500 Right NowJan 22, 2026 •By Lawrence NgaAlphabet's 2025 Review: The Four Developments That Mattered Most for InvestorsJan 22, 2026 •By Manali Pradhan, CFAMy Top 4 Stocks to Buy in Early 2026Jan 21, 2026 •By Billy DubersteinWhy Alphabet Rallied TodayJan 20, 2026 •By Chris NeigerWith Gemini Powering Apple's Siri, Alphabet Could Soon Be the Undisputed AI LeaderAbout the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedAlphabetNASDAQ: GOOG$328.60 (0.01%) $2.24AlphabetNASDAQ: GOOGL$328.12 (0.01%) $2.42Meta PlatformsNASDAQ: META$658.76 (+0.02%) $+11.13*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.