Can you buy Google shares for $4 billion?

With Alphabet (GOOG) (GOOGL) poised to generate windfall profits thanks to the AI ​​revolution and changing hands at a relatively low valuation, the stock is a buy now. Additionally, Warren Buffett’s company Berkshire Hathaway ((BRK.A) (BRK.B) has given Google its seal of approval, and that development should allow GOOG stock to outperform in the short to medium term. Finally, in the long term, the company could well get a big boost from its self-driving cars.

Alphabet has many very popular and valuable digital assets, including its Google search engine, YouTube, the Android ecosystem, Gmail, and Google Cloud. However, the company currently generates the vast majority of its revenue from advertising. In the month ending November 25, the stock had risen 20.5%, causing the company’s market capitalization to approach $4 trillion.

In the third quarter, the conglomerate’s revenue rose 16% compared to the same period a year earlier to $102.3 billion, while its operating income, excluding a one-time charge, soared 22% year over year.

GOOG stock is changing hands at a price-to-earnings ratio of 31.4 times, while 44 of 55 analysts covering the stock rate it as a “Strong Buy.”

According to a recent report, Meta (META), which purchases a large number of AI chips, is considering using Alphabet’s AI chips. The idea that Meta, a major rival to Google in the digital advertising space, is even considering purchasing a sizable number of chips from its competitor suggests that the processors are high-quality products that are poised to attract significant demand.

In fact, according to one source, “GOOG chips are more cost-effective and energy efficient” than Nvidia GPUs. In light of these points, GOOG’s chips could easily attract significant revenue for the company in the long term.

Staying in the AI ​​space, the company’s latest AI model, Gemini 3, “won immediate praise for its reasoning and coding capabilities, as well as specific tasks that have tripped up AI chatbots.” Bloomberg reported. Investors are also pleased with the tech giant’s partnership with artificial intelligence startup Anthropic.

Gemini 3 will also likely boost GOOG’s financial results in the long term.

Finally, Google Cloud has benefited significantly from the AI ​​revolution and is making positive progress from a financial standpoint, as its backlog increased 82% in the third quarter compared to the same period last year to $155 billion.

Berkshire Hathaway acquired 17.8 million shares of GOOGL in the third quarter, showing confidence in the company’s prospects and making the market much more optimistic about Alphabet. Berkshire’s move is likely to make most investors view Alphabet favorably for a considerable period of time.

And long-term investors should consider that Alphabet’s self-driving car unit, Waymo, could well mark a turning point in the long term. Waymo could increase GOOG’s market capitalization by approximately $4.5 trillion in the not-too-distant future.

Alphabet has huge opportunities in the AI ​​and self-driving car space, while Berkshire’s backing will support the stock in the short to medium term. Consequently, the stock appears to be significantly undervalued at the moment.

As of the date of publication, Larry Ramer had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com