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This Artificial Intelligence (AI) Stock Will Be Worth $5 Trillion in 5 Years

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Big-tech companies already hold nearly all of the spots in the top 10 largest companies in the world. Still, these companies are rapidly growing, so they’re unlikely to relinquish their leadership roles. Over the next few years, investors shouldn’t be surprised to see this cohort reach new heights, and one of the biggest success stories will likely be Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).

Alphabet is the parent company of Google, YouTube, Waymo, and the Android operating system, but the market isn’t bullish on how the company generates most of its revenue. Despite this, I think Alphabet can grow into a $5 trillion company in five years and become a massive outperformer along the way.

Image source: Getty Images.

It’s no secret that generative artificial intelligence (AI) is challenging the Google search engine. Some people have already replaced their search habits with a generative AI browser, but this is far from the majority.

Still, that hasn’t stopped people from stating that Google search will eventually go extinct. I think this is far too bold a prediction, as it assumes that an entire generation of users will suddenly change how they primarily use the internet.

Most people don’t need the search horsepower that a generative AI experience offers but are already getting a bit of Google’s evolved process. At the top of each search, Google now displays an AI overview, which summarizes the search results using generative AI.

This combination of traditional search and generative AI is likely to be enough for the vast majority of the population. Additionally, management has stated that generative AI overviews can be monetized at the same rate as traditional searches, which ensures Google’s revenue stream will remain intact.

Alphabet is also investing heavily in various parts of AI, such as an in-house generative AI model (Gemini), computing servers to host AI (Google Cloud), and self-driving vehicles (Waymo). All of this can help secure the company’s position as a top artificial intelligence investment pick.

However, can that help transform the company into a $5 trillion business by 2030?

Thanks to the market’s bearish outlook on the Google search engine, the company’s primary revenue driver, Alphabet currently has a very cheap valuation (at least compared to the broader market).



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Astra Pill Cuts Hard-to-Treat Blood Pressure in Late-Stage Trial

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AstraZeneca Plc said its experimental hypertension pill reduced blood pressure by more than twice as much as standard treatment in a large late-stage study, bolstering its chances of competing in a crowded field.



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Researchers find flaws in Perplexity’s Comet AI browser

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Perplexity, the AI startup that wants to pay publishers for their scraped content, launched a new agentic web browser called “Comet” in July. It arrived with an impressive $200-per-month subscription cost, available for Perplexity Max and some Perplexity Pro subscribers.

According to Perplexity, “The security features, privacy, and compliance standards your business demands are already built into the core of Comet.” Now, the AI-powered browser is coming under fire for security vulnerabilities discovered by Brave and Guardio (via Tom’s Hardware).



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Perplexity’s ‘Comet Plus’ wants to support online journalism

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For the most part, clicks have kept online journalism alive and (mostly) thriving before generative AI models started to appear. Clicks should lead to revenue, which pays the reporters behind news and editorial articles across the web. However, various artificial intelligence bots, like Google’s AI Overviews for search and OpenAI’s ChatGPT, are now actively crawling this content and redirecting page views from those same clicks.

It’s wreaking havoc on the digital publishing world, an industry that continues to rely on advertising and affiliate revenue from genuine, human traffic. AI-generated summaries can be convenient for readers when they work as intended, but they’re not immune to errors — or “hallucinations” — that can report completely incorrect information scraped from outdated (or just plain irrelevant) sources.



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