Got $3,000? 1 Artificial Intelligence (AI) Stock to Buy and Hold for the Long Term.

Core Insights - The artificial intelligence (AI) boom is ongoing, with executive teams eager to leverage the technology while employees express concerns about job impacts. Investors are actively seeking profitable opportunities in this trend [1] Group 1: Company Overview - Alphabet has been a pioneer in AI, transitioning from a mobile-first to an AI-first approach as early as 2015, showcasing its foresight in the tech landscape [3] - The company has utilized machine learning since 2001, indicating a long-standing commitment to AI technology [4] - Recent advancements include AI applications in various platforms such as Search, Maps, and YouTube, enhancing user experience [5] Group 2: AI Developments - Alphabet announced the upcoming release of Agent Mode, which can perform complex, multistep tasks, further demonstrating its commitment to AI innovation [6] - Google Cloud is positioned as a significant growth market, especially as companies increasingly integrate AI into their operations [7] Group 3: Financial Performance - In Q1 2025, 74% of Alphabet's revenue, amounting to $67 billion, was derived from digital advertising, with AI playing a crucial role in automating ad campaigns [8] - Despite capital expenditures of$53 billion in 2024, Alphabet generated $73 billion in free cash flow, indicating strong financial health [10] - The current valuation shows shares trading at a forward price-to-earnings ratio of 17.5, representing a 22% discount to the S&P 500, making it an attractive investment opportunity [11]