Alphabet Inc (GOOG)

Has invested in AI for many years. Leader in Search. Has lagged some of the other players, so the valuation is more attractive. Start adding here in stages.

Owns share in company.
Excellent business with bright future.
Not a major source of growth, but expecting stable returns.
Strong management team.
Good R&D.

Both great but different businesses, and great as long-term holds. Decide what end-market you're targeting to make your choice.

ASML makes cutting-edge machines that cost $100s of millions per unit. Concerns in the near term about China and the tit-for-tat going on. Risk that orders will be pushed back. Long-term, still likes a lot. Quite expensive, more of a monopoly.

GOOG is still one of his favourites. May just have the best AI capabilities in the world, despite OpenAI and the MSFT partnership, and that will continue to power through. Not expensive.

He's in for the long haul. This is a core holding, not one of the highly overvalued and overpriced tech stocks. This one will be fine. Trading at 23x earnings, cheap relative to some of the others.

Alphabet hasn't done a good enough job in cloud, being a distant third behind MSFT.

Has done well, but still below all-time highs. Still leads in online search and ads. They grew a lot during Covid, but has slowed down since. Generates lot of fresh cash flow. They've developed their own Generative AI company and will embed AI in a lot of their products. Their cloud business is growing at a healthy 30% and have a strong balance sheet. Forward PE is 23x, higher than a year ago. They can keep growing. Are cutting costs after rapid expansion.

High margin business with excellent future.
Relative to peers - trading at fair value.
$250 revenues expected in 2023.
Undisputed leader in search.
Hardware (Chromebooks, and homeware) doing well.
Android has 70% market share.

Will continue to hold.
Strong A.I. team that is on cutting edge.
Excellent advertising business model.
High margin, low capital requirements.
Very good business for the long term investor. 

Alphabet is known for pouring significant capital into R&D, so they will likely master ChatGPT and even make further inroads in AI, but the market will need to wait. In the meantime, the numbers have been mixed at Alphabet, with GOOG missing three of its last four quarters. Its PE has returned to early-2021 levels at 27.55x (vs. 20.27x a year ago) as shares have climbed 40% so far this year, an increase on par with Apple and Microsoft. A recession would dampen Alphabet’s digital ad business, but the company is sitting on a pile of cash and carries no debt. Nice buffer. Long-term, this is solid company. Read Top 3 AI Stocks for our full analysis.

Fundamentally a very strong business.
High margins with excellent cash generating ability.
Strong research in A.I. 
Online ad business very strong with recurring revenue.
Would recommend for long term investors.

Loves its long-term growth. Trading at just above market multiples, loads of cash, no debt. With AI, it's back in vogue. Many products, like Waymo, have not been monetized yet.

Concern over A.I. tech falling behind over blown.
Believes business has excellent prospects with Ad business.
A.I. pie will continue to grow.
Strong fundamentals with high margins.

Has a yellow light on this. GOOG hasn't recovered as much as Meta (up nearly 100% this year), and revenue growth hasn't dramatically risen.

His largest holding. Controversial right now with ChapGPT and how that will affect its Search business. Lots of different avenues for making money with AI, not just language-learning models.