As the AI arms race accelerates, Alphabet Inc. (NASDAQ:GOOGL), parent company of Google, is making strategic moves to stay ahead. Its potential partnership with CoreWeave (NASDAQ:CRWV), a GPU cloud provider, to rent Nvidia (NASDAQ:NVDA) Blackwell chips signals the company’s intent to double down on artificial intelligence infrastructure. But the big question investors are asking is: Is Google stock a buy now?

The Strategic Importance of the CoreWeave Partnership

Alphabet’s reported interest in CoreWeave’s GPU capabilities is more than just a short-term fix. As Nvidia’s chips become increasingly scarce and demand soars, Google’s move to secure access via a third party could give it an edge in both the AI and cloud computing space. This is particularly relevant as Google seeks to scale its Gemini AI platform across Search, Android, Gmail, YouTube, and other key properties.

Such a deal would also ease supply chain bottlenecks while positioning Google Cloud as a stronger competitor to Amazon Web Services (NASDAQ:AMZN) and Microsoft Azure (NASDAQ:MSFT). This strategy makes the case stronger when investors ask: Is Google stock a buy right now?

Strong Earnings and a Dominant Market Presence

Alphabet’s financial health reinforces its investment appeal. The tech giant posted Q4 2024 revenues of $96.5 billion, up 11.8% year-over-year, with earnings per share (EPS) rising 31.1% to $2.15—beating expectations once again. Notably, Google Search generated $54 billion, and Google Cloud brought in $12 billion, a year-over-year growth of 30.1%.

The consistency in revenue growth, particularly in a challenging macroeconomic environment, positions Alphabet as a relatively stable play in the tech sector. For investors wondering is Google stock a buy, these financials provide a compelling “yes.”

AI Integration as a Long-Term Catalyst

Google’s quiet but thorough AI integration through the Gemini platform gives it a unique advantage. Rather than treating AI as a separate business unit, Google has woven it deeply into existing tools—from Search and Gmail to YouTube and Chrome. This seamless integration has led to a surge in AI-powered advertising, content recommendations, and user experience enhancements.

Tools like Performance Max are helping advertisers boost returns, making Google’s ad ecosystem more effective and sticky. This could drive higher ad spend, which remains Alphabet’s core revenue stream. Furthermore, in the cloud space, Google is witnessing increased enterprise demand for AI-enabled infrastructure—a trend that could further bolster future growth.

YouTube’s Surging Engagement and Ad Revenue

Another reason Alphabet remains attractive is the consistent strength of YouTube. The platform generated $10.5 billion in Q4 ad revenue, boosted by political ad spending and a dramatic increase in TV-based streaming. Over a billion hours of YouTube content are now consumed daily on television screens, showcasing the platform’s transition from mobile-first to living room-dominant consumption.

This growth could help Google diversify its revenue and reduce its reliance on Search advertising—a key factor when assessing is Google stock a buy in today’s evolving digital landscape.

Challenges: Regulation and Rising Competition

Despite its strengths, Google faces hurdles. Regulatory pressure is mounting, with U.S. and European agencies cracking down on its Search and advertising dominance. The Department of Justice’s 2024 ruling could reshape how ads are served in Search results as early as 2025.

Additionally, Google must contend with fierce competition from AI-powered offerings by Amazon and Microsoft. With rivals investing billions into large language models and cloud infrastructure, Alphabet can’t afford to slow its momentum—making its GPU access via CoreWeave all the more critical.

Analyst Sentiment Remains Bullish

Wall Street analysts remain optimistic. Of the 53 analysts tracking Alphabet, 41 rate it a “Strong Buy,” three a “Moderate Buy,” and nine suggest holding. The average 12-month price target is $215.70, implying an upside of roughly 46% from current levels.

Final Verdict: Is Google Stock a Buy?

Given its resilient earnings, strategic AI push, and expansion into GPU resources through partners like CoreWeave, Alphabet (NASDAQ:GOOGL) looks well-positioned for future growth. While regulatory challenges and competitive threats exist, the company’s diversified revenue streams and deep AI integration suggest it’s built for long-term success.

So, is Google stock a buy? For long-term investors seeking exposure to the future of AI and cloud, the answer is yes—with patience and a close eye on regulatory developments.

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