If I Could Own Only 1 Stock, This Would Be My Choice
Alphabet would be the one stock I'd own if I could own only one.
Overview
If I could own only one stock, my choice would be Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). The reason is simple: It's the most complete artificial intelligence (AI) company, with multiple advantages built in, and I think it can win whether AI infrastructure spending continues to rise or levels off.
Alphabet's biggest edge is that it has its own powerful custom AI chips. It developed its Tensor Processing Units (TPUs) more than a decade ago and has built its entire software and hardware ecosystems around these chips to optimize their performance. This gives the company several advantages.
Details
First, it allows it to train its AI models much more cheaply than competitors and to run inference most cost-effectively. This also lets it offer its cloud computing customers a cheaper alternative that has higher margins for itself. Alphabet's TPUs are so well regarded that it has even let Anthropic place large orders for them, adding another high-margin revenue stream.
Source
Originally published at www.fool.com.