We came across a bullish thesis on Alphabet Inc. on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on GOOGL. Alphabet Inc.’s share was trading at $336.01 as of January 28th. GOOGL’s trailing and forward P/E were 33.17 and 29.85 respectively according to Yahoo Finance.
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Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. (GOOGL) has decisively emerged as the dominant infrastructure provider in the global AI race, turning years of strategic hesitation into a powerful competitive advantage. The company’s Q3 2025 results underscore this transformation, with revenue reaching $102.3 billion, Google Cloud growing 34% to $15.2 billion, and operating margins expanding to 23.7%, reflecting the payoff from its long-term investments.
By merging DeepMind and Google Brain under Gemini and standardizing AI architecture, Alphabet solved the classic Innovator’s Dilemma, ensuring that AI enhances rather than cannibalizes its core Search business. Search revenue grew 15% YoY as AI unlocked billions of new monetizable queries, proving that AI is expanding the market rather than threatening it.
Alphabet’s unmatched infrastructure—custom TPUs, proprietary data centers, and power contracts—creates a moat that competitors cannot easily replicate. The company now processes 1.3 quadrillion tokens per month, generating unmatched breadth and depth of AI training data. With $155 billion in Cloud backlog and $24.5 billion in free cash flow this quarter alone, Alphabet funds its growth entirely from operations, avoiding dependence on external capital. Competitors like OpenAI rely on Alphabet’s grid to operate, highlighting Google’s structural advantage in power, cash, and distribution.
The combination of AI-driven Search growth, high-margin Cloud expansion, and deep infrastructure control positions Alphabet for sustained long-term outperformance. Even Waymo, currently undervalued in Other Bets, represents a hidden multi-billion-dollar asset. At a 25x forward P/E for 2026, Alphabet’s stock reflects a proven growth trajectory with strong profitability, offering a compelling risk/reward opportunity for investors. With strategic execution, operational scale, and multiple growth catalysts, Alphabet is uniquely positioned to maintain leadership in the AI economy and continue delivering substantial shareholder value.
Previously, we covered a bullish thesis on Alphabet Inc. (GOOGL) by FluentInQuality in May 2025, which highlighted the company’s control over digital distribution, AI integration, and cash-generative platforms like Search, YouTube, and Google Cloud. GOOGL’s stock has appreciated by approximately 112.04% since coverage. Nikhs shares a similar bullish view but emphasizes Alphabet’s emergence as the global AI infrastructure leader and its resolution of the Innovator’s Dilemma.
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