We stumbled upon a bullish thesis on Alphabet Inc. on the Nikhs Substack. In this article we will summarize the bulls’ thesis on GOOGL. Alphabet Inc. stock was trading at $336.01 on January 28. 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, Asia-Pacific, Canada and Latin America. (GOOGL) has decisively emerged as the dominant infrastructure provider in the global AI race, turning years of strategic hesitancy 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 return on its long-term investments.
By merging DeepMind and Google Brain under Gemini and standardizing the AI ​​architecture, Alphabet solved the classic innovator’s dilemma, ensuring that AI enhances rather than cannibalizes its core search business. Search revenue grew 15% year-on-year as AI unlocked billions of new monetizable queries, proving that AI is expanding the market rather than threatening it.
Alphabet’s unparalleled infrastructure—custom TPUs, proprietary data centers, and power contracts—creates a moat that competitors can’t easily replicate. The company now processes 1.3 trillion tokens per month, generating an unparalleled 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 is funding its growth entirely from operations, avoiding reliance on outside capital. Competitors like OpenAI rely on Alphabet’s network to operate, highlighting Google’s structural advantage in energy, 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. With a forward P/E of 25 times by 2026, Alphabet 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 to deliver substantial shareholder value.
Previously, we covered a bullish thesis at Alphabet Inc. (GOOGL) by FluentInQuality in May 2025, which highlighted the company’s control over digital distribution, AI integration, and cash-generating platforms like Search, YouTube, and Google Cloud. GOOGL stock has appreciated approximately 112.04% since coverage. Nikhs shares a similar bullish view, but emphasizes Alphabet’s emergence as a global leader in AI infrastructure and its resolution of the innovator’s dilemma.