Alphabet: A Growth Stock Worth Considering for Your Portfolio

Friday, Aug 15, 2025 11:22 am ET2min read

Alphabet (GOOGL) is a Zacks Rank #3 (Hold) stock with a Growth Style Score of B and VGM Score of B. Earnings are expected to grow 24% YoY for the current fiscal year, with sales growth of 13.4%. The company boasts an average earnings surprise of 16% and has generated cash flow growth of 19.3%. With solid fundamentals, GOOGL should be on investors' short lists.

Title: Alphabet (GOOGL) and ASML Holding: Attractive Long-Term Investment Opportunities

Alphabet Inc. (GOOGL) and ASML Holding (NASDAQ: ASML) are two technology stocks that present compelling long-term growth prospects despite their current trading valuations. Both companies are well-positioned to capitalize on the burgeoning semiconductor and artificial intelligence (AI) markets.

# ASML Holding: Industry Dominance Amid Uncertainty

ASML Holding, a leading manufacturer of photolithography systems, has seen its stock price decline despite the growing demand for advanced computer chips. The company's stock is currently trading at a price-to-earnings (P/E) ratio of 25.4, significantly below the market average. ASML faces near-term uncertainty due to potential tariffs on its machines sold into the United States, which could delay or halt orders of new lithography machines [1].

However, ASML's strong competitive position and industry dominance give it a pricing power advantage. The company expects its revenue to reach between 44 billion and 60 billion euros by 2030, driven by the semiconductor market's growth, particularly in AI advancements [2]. ASML's long-term growth runway and pricing power make it an attractive investment option for those seeking exposure to the semiconductor sector.

# Alphabet Inc.: Impressive Growth in AI and Cloud Computing

Alphabet Inc., the parent company of Google, has been making significant strides in AI and cloud computing. The company's impressive growth in these areas makes it a prime candidate for long-term investment. Alphabet's consumer and individual AI services, such as Google Search and the Gemini AI chatbot, have seen substantial revenue growth. Additionally, Google Cloud, which is one of the top places to host AI-focused cloud computing, has grown significantly, with revenue increasing by 32% year over year [1].

Alphabet's impressive growth prospects are reflected in its stock price, which is currently trading at a P/E ratio of 21, significantly lower than its big technology peers and most other AI companies. This makes Alphabet an easy bargain buy for investors seeking long-term growth.

# Conclusion

ASML Holding and Alphabet Inc. are both bargain buys for 2025 and beyond, trading at cheap valuations despite their robust growth prospects. ASML's industry dominance and strong competitive position make it an attractive choice for investors seeking exposure to the semiconductor sector, while Alphabet's impressive growth in AI and cloud computing positions it as a prime candidate for long-term investment. Both companies offer compelling investment opportunities for those seeking to capitalize on long-term growth.

# References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/ASML/pressreleases/33994096/have-1000-these-2-stocks-could-be-bargain-buys-for-2025-and-beyond/
[2] https://www.ainvest.com/news/affordable-tech-stocks-2025-asml-alphabet-2508/

Alphabet: A Growth Stock Worth Considering for Your Portfolio

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