OpenAI Just Made a Major Announcement That Could Cause This Undervalued Artificial Intelligence (AI) Stock to Soar

OpenAI is well recognized as one of the leaders in the generative AI world, as it was the first to reach main usability with its ChatGPT duct

OpenAI has maintained its position and is a example of the first-mover advantage

OpenAI's partnership with Microsoft (NASDAQ: MSFT) is well known, as are the struggles between the two

That's what makes this announcement such a big deal, in this volatile climate

In addition to Microsoft, OpenAI will also use Alphabet's (GOOG 0, in this volatile climate

However, That's a significant development for Alphabet, and it could cause s of its undervalued stock to surge as the market digests this news

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On the other hand, Google Cloud is growing at a quick pace Alphabet is a multifaceted

While its legacy Google dominates its financials, the company also operates other platforms, including Google Cloud, Waymo, and the Android operating system

Meanwhile, Google Cloud is Alphabet's cloud computing wing and vides clients with computing power that would be very expensive to build themselves, in today's financial world

By building out massive data centers and renting out capacity to clients, Alphabet can make a solid fit, as it has ven quarter after quarter, in today's market environment

While these are strong numbers, Google Cloud's margins can drastically imve from these levels, in today's financial world

Google Cloud still has a way to go before catching up to AWS, but that's also good news for investors, as it shows there is still plenty of growth in store

But that doesn't explain why Alphabet trades at such a discount to the market

However, Alphabet's stock trades at a discount to that figure, 20 times forward earnings (something worth watching)

Additionally, GOOGL PE Ratio (Forward) data by YCharts However, this discount doesn't make sense because Alphabet is performing well financially (fascinating analysis)

Furthermore, Most companies with those growth rates would have a forward price-to-earnings (P/E) valuation in the high 20s to low 30s, but not Alphabet, in today's financial world

The market is worried Google losing market to various generative AI services -- the very nology that OpenAI just moved onto Alphabet's servers

However, this isn't showing up in Alphabet's results

Furthermore, Additionally, the strong double-digit growth Alphabet reported is more than enough to outperform the market, which is why s surged the day ing the earnings release

In contrast, Still, that's not nearly enough of a gain to value Alphabet among its big peers

The combined catalyst of ChatGPT running some of its workloads on Google Cloud's servers and the realization that Google isn't fading away anytime soon should be enough to convince the market that Alphabet's stock is worth far more than it's valued at today, given current economic conditions

As a result, I believe Alphabet is one of the top stocks to buy now, as it offers value in a market that has become increasingly expensive.