Wall Street's Secret Weapon: This Artificial Intelligence (AI) Stock for 2026

By Geoffrey Seiler – Feb 27, 2026 at 1:00AM ESTKey PointsAlphabet has the most complete AI stack of any company.By having developed its own world-class AI chips, Alphabet has a cost advantage over customers.Meanwhile, it is using AI to power growth at its core search business.NASDAQ: GOOGLAlphabetMarket Cap$3.7TToday's Changeangle-down(-1.84%) $5.75Current Price$307.15Price as of February 26, 2026 at 3:58 PM ETIf there is one AI stock to own, it's Alphabet.If you're looking for one company that is at the heart of artificial intelligence (AI), look no further than Alphabet (GOOGL 1.84%) (GOOG 1.88%). The company has the most complete AI tech stack of any company on the planet. ExpandNASDAQ: GOOGLAlphabetToday's Change(-1.84%) $-5.75Current Price$307.15Key Data PointsMarket Cap$3.7TDay's Range$302.35 - $313.0352wk Range$140.53 - $349.00Volume1.7MAvg Vol34MGross Margin59.68%Dividend Yield0.27% It starts with its Gemini large language model (LLM), which is consistently rated among the best. It embeds Gemini across its variety of businesses, from cloud computing to search. Search is still Alphabet's largest business, and on that front, it has incorporated Gemini into its search functionality. This includes AI-powered features like Lens (visual search) and Circle to Search, as well as AI Overviews. Meanwhile, with AI Mode, users can also toggle between traditional search and a full-blown AI chatbot. This is all helping fuel more search queries and revenue growth for Alphabet. The company has a wide moat in this area because it essentially controls the gateway to the internet through its ownership of the world's most used web browser in Chrome and smartphone operating system in Android, both of which have over 70% market share. Meanwhile, through a search revenue-sharing deal with Apple to be its default search engine, it reaches much of the rest of the world. Alphabet has also signed a deal for Gemini to be the AI engine behind Apple Intelligence. Image source: Getty Images. An emerging AI chip leader Equally important as its Gemini model, Alphabet has also created world-class custom AI chips called Tensor Processing Units (TPUs). The company developed these chips over a decade ago, and they have been battle-tested, running much of the company's internal workloads. It uses these custom ASICs (application-specific integrated circuits) to train Gemini and run inference, which gives it a structural cost advantage over competitors. Its TPUs are both cheaper than Nvidia's graphics processing units (GPUs), and they consume less energy. This helps create a positive feedback loop, as with its cost savings, it can pour more money into AI infrastructure to build better models at a cheaper cost and grow out its cloud computing business. Alphabet is doing just that, with plans to spend a massive $175 billion to $185 billion on data center infrastructure this year. Alphabet is also starting to let some of its customers use its TPUs, creating another revenue growth driver. Morgan Stanley has estimated that Alphabet could generate $13 billion in revenue for every 500,000 TPUs its customers deploy. Meanwhile, the company is in talks with a few neocloud companies, including Fluidstack, as a way to expand the use of TPUs outside of Google Cloud. As the only company with both a leading LLM and AI chips, Alphabet is one of the most important AI companies in the world and a top AI stock to own.Read NextFeb 26, 2026 •By Chris Neiger1 Top Quantum Computing Stock to Buy in 2026Feb 25, 2026 •By Daniel SparksUp More Than 70% in 12 Months, Is It Too Late to Buy Alphabet Stock?Feb 24, 2026 •By Robert IzquierdoAlphabet vs. Meta Platforms: Which One Will Dominate the Next Decade?Feb 23, 2026 •By Lee SamahaHere's Why Oracle Stock Slumped TodayFeb 23, 2026 •By Geoffrey SeilerThis Billionaire Just Sold Nvidia and AMD Shares to Buy These AI StocksFeb 22, 2026 •By Neil PatelAlphabet's Fastest-Growing Segment Makes the "Magnificent Seven" Stock an AI LeaderAbout the AuthorGeoffrey Seiler is a contributing Motley Fool stock market analyst covering technology, consumer goods, healthcare, energy, and materials stocks. Prior to The Motley Fool, Geoffrey was a senior equity analyst at Raging Capital Management, a $600 million long-short hedge fund. He holds a bachelor’s degree in history from Haverford College.TMFFindProfitStocks MentionedAlphabetNASDAQ: GOOGL$307.15 (1.84%) $5.75AlphabetNASDAQ: GOOG$307.15 (1.88%) $5.88*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.