Investors are constantly searching for the next big AI play, but one of the most promising opportunities is hiding in plain sight.
Alphabet, the parent company of Google, is being called a dirt-cheap AI stock in 2025 thanks to its low valuation, massive distribution power, and growing dominance in cloud and artificial intelligence.
Despite concerns about disruption in search, the company continues to grow revenue while expanding into new markets like robotaxis and quantum computing.
Features: Why Alphabet Looks Undervalued
Alphabet’s stock trades at less than 19 times projected 2026 earnings, a strikingly low figure for a $2.5 trillion company that dominates search, video, and mobile.
By comparison, many AI-focused companies trade at multiples twice as high with far less revenue stability. For long-term investors, that makes Alphabet a rare dirt-cheap AI stock.
The fear driving this discount is that AI tools like chatbots could reduce the need for traditional search. But the opposite seems to be happening.
Search revenue rose 12% in the last quarter to $54.2 billion, showing that AI integration is boosting usage rather than replacing it.
Google’s AI Overviews and AI Mode features are gaining traction worldwide, with surveys suggesting users prefer them to competitors like OpenAI’s ChatGPT.
Alphabet doesn’t need to change consumer habits. Billions already rely on Google products every day, and AI is being layered seamlessly into existing services.
With Chrome, Android, and its Safari partnership ensuring default visibility, Google has a distribution moat that’s almost impossible to match.
Release Date Rumors: What’s Next for Alphabet’s AI Push
While not tied to a specific product launch, 2025 and 2026 are shaping up to be critical years for Alphabet’s AI ecosystem.
The company is expanding its cloud data centers to keep up with demand, with executives admitting that capacity constraints could last well into 2026.
Developers are rapidly adopting Google’s Gemini models, Vertex AI platform, and BigQuery analytics, while companies are increasingly choosing Google’s custom tensor processing units (TPUs) for cost-efficient AI workloads.
If Google Cloud maintains its current 30%+ revenue growth rate, investors may no longer overlook it as a second-tier player compared to Amazon or Microsoft.
Meanwhile, Alphabet’s Waymo division is quietly scaling its robotaxi service across multiple cities. Rumors suggest that by late 2025, Waymo could expand to additional U.S. markets, which would position Alphabet as a frontrunner in autonomous driving.
Expert Opinions: Why Analysts Call It a Dirt Cheap AI Stock
According to a recent Morningstar report, Alphabet is undervalued relative to peers given its consistent earnings growth.
Analysts argue that fears over AI disrupting search are exaggerated. In fact, new AI features are increasing engagement, which in turn strengthens Alphabet’s ad revenue model.
The Wall Street Journal notes that Google Cloud’s profitability surge is a sign of long-term sustainability. Operating income in Q2 doubled to $2.8 billion, showing strong leverage as more customers adopt its AI-powered tools.
Independent analysts also point to Alphabet’s emerging bets in quantum computing and autonomous driving.
While these divisions are not yet major revenue drivers, they could unlock future growth streams, giving investors free upside that isn’t reflected in today’s stock price.
Social Buzz: What Investors Are Saying
On platforms like Reddit’s r/stocks and X (formerly Twitter), retail investors are buzzing about Alphabet as a dirt-cheap AI stock.
Many point out that while companies like Nvidia grab headlines, Alphabet quietly integrates AI into products that billions already use.
Some argue that its current valuation leaves plenty of room for growth without the hype-driven risks of smaller AI startups.
Critics, however, caution that regulatory scrutiny could weigh on Alphabet’s ad business in the long run. Antitrust cases in both the U.S. and Europe remain unresolved, and some investors worry that government pressure could erode margins.
Still, most agree that Alphabet’s dominance in AI-enhanced search and cloud computing makes it a safer long-term play than more speculative AI names.
Final Thoughts: A Rare Bargain in Big Tech
Alphabet might not be the flashiest AI stock, but it may be one of the smartest buys. Its low valuation, expanding cloud business, and unmatched distribution make it a textbook example of a dirt-cheap AI stock hiding in plain sight.
While risks remain, especially from regulatory action and rising competition, Alphabet’s ability to adapt and integrate AI across its ecosystem should reassure long-term investors.
For those looking to add AI exposure to their portfolio without overpaying, Alphabet offers both stability and upside. In a market filled with hype, it’s rare to find a company with this much growth potential trading at a discount.
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IMO: something like: $AI which only had a less than 1% jump (actually .05% reaction) to the potential rate cuts in September
— The.Motivator (Big 🧠 Option Trader) (@TheMotivator_JS) August 24, 2025
GUARANTEE, #C3AI will make a move towards previous average around 19-21, making profit potential high priority#optiontrading #StockToWatch #AI pic.twitter.com/DyEPwDDeU4
Abdul Basit is a US-based tech writer who covers Apple innovations, Tesla’s EV growth, AI breakthroughs, smartphone trends, and app reviews for global readers.