Wall Street Expert - 'Alphabet Is the Top Tech Stock Among the Magnificent 7'

(Seoul=Yonhap Infomax) Yong Wook Kwon – Alphabet Inc. (NASDAQ: GOOGL), the parent company of Google, has been identified as the best pick among the so-called "Magnificent 7" mega-cap tech stocks, according to a Wall Street expert.

Gene Munster, Managing Partner at Deepwater Asset Management, told CNBC on the 25th (local time), "The power dynamics in Silicon Valley are shifting," highlighting Alphabet's growing appeal.

Munster noted that the recent rise in Alphabet shares, contrasted with a decline in Nvidia Corp. (NASDAQ: NVDA), is "very positive for Alphabet stock in both the short and long term."

He addressed previous concerns that Google could not compete in the generative artificial intelligence (AI) market, stating, "Recent developments have dispelled those worries."

Munster added, "This also demonstrates that they have the capability to directly compete with OpenAI in large language models (LLMs)."

He emphasized that the chatbot market represents a significant opportunity for Google, explaining, "Currently, only about 20% of platform users frequently use Gemini."

Marc Benioff, founder of Salesforce Inc. (NYSE: CRM), commented, "I've used ChatGPT daily for three years, and only tried Gemini 3.0 for two hours this time. Still, everything—reasoning, speed, image, video—has become sharper and faster. This is a remarkable improvement, and I won't be going back (to ChatGPT)."

Alphabet shares are currently trading at approximately 28 times the company's projected net income over the next 12 months. While this is similar to other Magnificent 7 stocks, Munster argued that Google's new positioning in both chips and AI chatbots justifies a much higher valuation multiple.

Munster further noted, "Google Search is used by 2.5 billion people daily. Despite ChatGPT disrupting the digital search ecosystem, Google's strength lies in its unmatched reach and distribution network."

ywkwon@yna.co.kr

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