GOOGL - Alphabet Inc.

Google just issued $85 billion in new shares — the largest tech stock offering in history — diluting existing shareholders. It is also one of the top 10 S&P stocks that will be sold by fund managers to fund IPO purchases and by index funds due to rebalancing.

Google's Willow chip achieved below threshold error correction - the holy grail of quantum computing. Ran quantum echo algorithm thousands of times faster than best classical supercomputer. Described as a major player pushing the entire industry forward.

The host calls Google the real standout name across all five layers of AI: chips (custom silicon), infrastructure (Google Cloud), models (Gemini), applications, and energy. Google has a $100B stake in SpaceX, 14% ownership of Anthropic, and is dominating the entire AI space. Google Cloud growth accelerated to 63% with operating margins climbing to 33%.

Raised $85B for AI capex. Would have grown faster than 63% if they had more chips. Placed major Intel packaging deal for TPUs. Potential for Google TPU sales to be bigger than YouTube ($50B/year). Host views it as a long-term winner.

Listed among 15 stocks approaching intrinsic value (6-9% return range). Paul will give deeper look if prices fall further in a correction.

Compute constrained — would grow faster if they had chips. 63% growth can be sustained. But buybacks have gone to zero, dilution expected. Deals with SpaceX for 110,000 GB200s. Market not happy with capex increases.

Raising $85B for cloud infrastructure growth, heavily investing in TPUs (primary supplier Broadcom). Partnering with Palantir for enterprise AI distribution. Host views Google as a quality name to buy when out of favor.

Christoph sold 3% of his Google position (reducing from 11% to 8% of his portfolio) to fund his Mastercard purchase. He wants to move away from capex-heavy AI investments like Google toward asset-light companies with more visible returns on investment.

Alphabet (Google) is cited as one of the Magnificent 7 AI proxy stocks facing selling pressure from capital rotation into direct AI investments and from index rebalancing when SpaceX enters NASDAQ 100.

Berkshire Hathaway tripled its position in Alphabet, a massive vote of confidence. However, Bill Ackman sold citing over 40x earnings. The host notes two great investors going opposite directions.