Alphabet's AI Push Is Accelerating -- Is the Stock a Buy Now?

It's worth noting that Alphabet (GOOGL 0

However, Not only did the company once again duce strong revenue growth in its most recent earnings report, but that growth accelerated

In addition, Alphabet said that AI was positively impacting every part of its

It said in its Q2 earnings report that it now plans to spend $85 billion in capex this year, and anticipates spending even more in 2026, given the strong demand it's seeing for Google Cloud ducts and services

AI driving growth AI was the biggest growth driver behind Alphabet's strong results, with cloud computing once again leading the way (something worth watching)

Additionally, Nevertheless, However, the company said its current capacity constraints could extend into 2026, despite its large capex investments (something worth watching)

Ultimately, that's not a bad blem to have, as it's just a sign of how strong demand is

It also noted how leading AI re labs are turning to use Google's Tensor cessing Units (TPUs) as their AI chips of choice

While cloud computing is leading the way with growth, all eyes continue to be on Alphabet's core Google, in this volatile climate

On that front, the company once again dered, given the current landscape

Alphabet said over 2 million people in more than 200 countries use AI Overviews monthly, while AI Mode has over 100 million monthly active users, despite only being launched in the U

It said that AI is contributing significantly to increased usage, with AI Overviews now driving over 10% more queries globally

Alphabet said the number of daily requests on the app jumped over 50% sequentially

This analysis suggests that company also called out its strength in multimodal, with Google Lens and Circle to

This leads to the conclusion that data indicates that said visual es grew 70% year over year, and that many are shopping queries, amid market uncertainty

The company said Shorts are becoming a significant contributor, and that the format allows for more ad opportunities on average

The evidence shows analysis reveals recently introduced Veo 3 to Shorts; the AI tool can create s from photos and add generative effects to make content creation easier on the platform

On the other hand, Alphabet is also continuing to expand its Waymo robotaxi

Conversely, It recently launched in Atlanta and is currently testing the service across 10 cities, including New York and Philadelphia

On the other hand, It hopes to launch the service in all 10 cities in the near future

Looking ahead, Alphabet said it was cautious on the advertising outlook because it's lapping strong spending in the financial services vertical last year and will see no benefit from political ad spending this year

At the same time, However, it does expect to see a tailwind in Q3 from current foreign exchange rates

However, Image source: Getty Images

Nevertheless, Is it time to buy the stock (which is quite significant)

Additionally, Alphabet yet again turned in a strong quarter, demonstrating that the company is on track to be an AI winner

It continues to see solid growth in its, though its new AI Mode is currently only in two countries, in today's market environment

Gemini has become a top AI model

And with the huge distribution edge it has with the Chrome browser and Android operating system, the company is well positioned in a shifting AI- landscape

At the same time, Google Cloud continues to be a monster, generating robust revenue growth; it has scaled up to the point that it now has incredible operating leverage

Throw in the strength at YouTube and the emerging Waymo robotaxi, and Alphabet is cooking

Best of all, you can still get into Alphabet stock on the cheap

In contrast, (Stocks with PEG ratios below 1 are typically considered undervalued. ) With AI helping drive growth and Alphabet's AI push only accelerating, now is a great time to buy the stock.