Walmart Is Allowing Major Tech Companies to Cover AI Costs. Who Else Stands to Benefit?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy GOOG?
Source: Barron's
- Walmart's AI Strategy: Walmart is not investing heavily in artificial intelligence but is prepared to utilize AI tools developed by major tech companies.
- Collaboration with Big Tech: The retail giant is waiting to implement AI advancements that come from the significant research and development efforts of Big Tech firms.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alphabet Reasserts AI Leadership Amid Market Challenges
- AI Investment Surge: Alphabet plans to invest between $175 billion and $185 billion in AI by 2026, a significant increase from $91 billion in 2025, demonstrating its commitment to AI and expected to drive future revenue growth.
- Revenue Diversification: While digital ads still account for 73% of revenue, Google Cloud's contribution has risen from 12% to 15%, indicating substantial progress in diversifying revenue sources and enhancing market competitiveness.
- Waymo's Growth Potential: As a leading autonomous driving platform, Waymo has provided 20 million rides to date, and as it expands into new markets, it is expected to become a critical revenue source for Alphabet, further boosting overall profitability.
- Valuation Remains Attractive: Despite recent stock price gains, Alphabet's P/E ratio of 30 closely aligns with the S&P 500 average, suggesting it still holds potential to attract investors and likely achieve market-beating returns over the next five years.
See More
Apple to Open CarPlay to Third-Party AI Apps, Shifting Strategy
- Portfolio Dynamics: John Overdeck's portfolio positions Apple Inc. (AAPL) as the third-largest holding at 2.79% (approximately $1.39 billion), highlighting its significance among billionaire investors.
- CarPlay Strategic Shift: Apple plans to allow third-party voice-activated AI apps to utilize CarPlay starting February 6, 2026, marking a significant departure from its long-standing Siri-only policy, which is expected to enhance user experience and boost market competitiveness.
- Developer Support: While Siri will remain the default wake command, Apple anticipates rolling out developer support in the coming weeks, enabling automatic voice activation with the launch of third-party apps, thereby increasing the relevance of CarPlay in the evolving automotive software landscape.
- Product Launch Outlook: The upcoming iPhone 17e and iOS 26.4 beta, expected to feature an updated Siri by late February and a potential early March launch for M5 MacBook Pros, indicate Apple's ongoing innovation in the consumer electronics market.
See More
AI Chip Market Outlook: Nvidia and Broadcom as Top Picks
- Nvidia's Market Dominance: Nvidia (NVDA) is the leading player in AI infrastructure with its GPUs, as five companies are projected to spend $700 billion on AI infrastructure this year, positioning Nvidia for continued outsized growth in the coming years.
- Strategic Technology Investments: With ample cash, Nvidia is investing in the AI ecosystem, including licensing Groq's technology and hiring its employees, which should enhance its competitive edge in the inference market and solidify its market position.
- Broadcom's ASIC Advantage: Broadcom (AVGO) leads in application-specific integrated circuit (ASIC) technology, helping clients design efficient custom AI chips, with AI revenue projected to grow fivefold to $100 billion by 2027, indicating strong growth potential.
- Collaboration with Google: Broadcom's collaboration with Google on tensor processing units (TPUs) has attracted multiple companies, with Anthropic placing a $21 billion TPU order, showcasing Broadcom's robust growth prospects in the AI market.
See More
Amazon Stock Presents Strong Buying Opportunity Amidst Short-Term Concerns
- Stock Price Decline: Amazon's stock has dropped approximately 11% year-to-date, with a current P/E ratio of 28, the lowest in a decade, presenting a buying opportunity for investors at a cheaper valuation, with a potential 39% return expected.
- Analyst Consensus: A significant 92% of Wall Street analysts rate Amazon stock as a buy, with a median price target of $285 per share, indicating strong market confidence in its future growth despite the current price of $205.
- Capital Expenditure Plans: Amazon plans to invest $200 billion in capital expenditures in 2026, primarily for AWS and AI infrastructure, which will likely further deplete free cash flow but is deemed essential for maintaining market leadership.
- AWS Growth Potential: While AWS's net sales grew by 20%, it faces competition from Microsoft and Alphabet; however, its backlog of $244 billion, up 40% year-over-year, indicates strong future earnings potential.
See More
Alphabet's Strong Performance in the AI Market
- Market Share Growth: Alphabet's Google Gemini has captured 21% of the enterprise large language model market and is poised to surpass ChatGPT's 27% share by 2025, demonstrating its competitive edge and market leadership in the AI sector.
- Strong Financial Performance: In 2025, Alphabet generated $402.8 billion in revenue, a 15% increase year-over-year, with operating income nearing $130 billion and an operating margin of 32%, indicating robust profitability amid ongoing growth.
- Capital Expenditure Plans: Alphabet anticipates capital expenditures of $175-$185 billion for 2026, exceeding analyst expectations; however, with $30.7 billion in cash reserves and strong profitability, the company is well-positioned to support its data center expansion.
- Long-Term Debt Financing: Alphabet aims to raise $20 billion through the issuance of 100-year bonds, and despite its long-term debt of $46.5 billion, the company's diversified revenue streams and strong cash flow provide a solid financial foundation for taking on additional debt.
See More
Barrier Capital Initiates Over $10 Million Position in Compass
- New Investment Move: Barrier Capital Management disclosed in an SEC filing dated February 13, 2026, that it initiated a new position in Compass (NYSE:COMP) by purchasing 952,074 shares valued at $10.06 million, indicating a strong bullish outlook on the company.
- Asset Allocation Shift: This transaction positions Compass as the sixth largest holding for Barrier Capital, representing 7.4% of its reportable assets under management, reflecting confidence in Compass's future growth potential.
- Strong Performance: Compass achieved record revenue of $1.9 billion in Q3 2026, marking a 24% year-over-year growth, and forecasts sales to reach between $1.6 billion and $1.7 billion in Q4, further solidifying its market position.
- Attractive Valuation: With a price-to-sales ratio of 0.9 and a solid balance sheet, Compass is viewed as a good investment opportunity despite not being included in Motley Fool's top stock picks, highlighting the potential for significant returns.
See More
Alphabet Reasserts AI Leadership Amid Market Challenges
- AI Investment Surge: Alphabet plans to invest between $175 billion and $185 billion in AI by 2026, a significant increase from $91 billion in 2025, demonstrating its commitment to AI and expected to drive future revenue growth.
- Revenue Diversification: While digital ads still account for 73% of revenue, Google Cloud's contribution has risen from 12% to 15%, indicating substantial progress in diversifying revenue sources and enhancing market competitiveness.
- Waymo's Growth Potential: As a leading autonomous driving platform, Waymo has provided 20 million rides to date, and as it expands into new markets, it is expected to become a critical revenue source for Alphabet, further boosting overall profitability.
- Valuation Remains Attractive: Despite recent stock price gains, Alphabet's P/E ratio of 30 closely aligns with the S&P 500 average, suggesting it still holds potential to attract investors and likely achieve market-beating returns over the next five years.
See More
Apple to Open CarPlay to Third-Party AI Apps, Shifting Strategy
- Portfolio Dynamics: John Overdeck's portfolio positions Apple Inc. (AAPL) as the third-largest holding at 2.79% (approximately $1.39 billion), highlighting its significance among billionaire investors.
- CarPlay Strategic Shift: Apple plans to allow third-party voice-activated AI apps to utilize CarPlay starting February 6, 2026, marking a significant departure from its long-standing Siri-only policy, which is expected to enhance user experience and boost market competitiveness.
- Developer Support: While Siri will remain the default wake command, Apple anticipates rolling out developer support in the coming weeks, enabling automatic voice activation with the launch of third-party apps, thereby increasing the relevance of CarPlay in the evolving automotive software landscape.
- Product Launch Outlook: The upcoming iPhone 17e and iOS 26.4 beta, expected to feature an updated Siri by late February and a potential early March launch for M5 MacBook Pros, indicate Apple's ongoing innovation in the consumer electronics market.
See More
AI Chip Market Outlook: Nvidia and Broadcom as Top Picks
- Nvidia's Market Dominance: Nvidia (NVDA) is the leading player in AI infrastructure with its GPUs, as five companies are projected to spend $700 billion on AI infrastructure this year, positioning Nvidia for continued outsized growth in the coming years.
- Strategic Technology Investments: With ample cash, Nvidia is investing in the AI ecosystem, including licensing Groq's technology and hiring its employees, which should enhance its competitive edge in the inference market and solidify its market position.
- Broadcom's ASIC Advantage: Broadcom (AVGO) leads in application-specific integrated circuit (ASIC) technology, helping clients design efficient custom AI chips, with AI revenue projected to grow fivefold to $100 billion by 2027, indicating strong growth potential.
- Collaboration with Google: Broadcom's collaboration with Google on tensor processing units (TPUs) has attracted multiple companies, with Anthropic placing a $21 billion TPU order, showcasing Broadcom's robust growth prospects in the AI market.
See More
Amazon Stock Presents Strong Buying Opportunity Amidst Short-Term Concerns
- Stock Price Decline: Amazon's stock has dropped approximately 11% year-to-date, with a current P/E ratio of 28, the lowest in a decade, presenting a buying opportunity for investors at a cheaper valuation, with a potential 39% return expected.
- Analyst Consensus: A significant 92% of Wall Street analysts rate Amazon stock as a buy, with a median price target of $285 per share, indicating strong market confidence in its future growth despite the current price of $205.
- Capital Expenditure Plans: Amazon plans to invest $200 billion in capital expenditures in 2026, primarily for AWS and AI infrastructure, which will likely further deplete free cash flow but is deemed essential for maintaining market leadership.
- AWS Growth Potential: While AWS's net sales grew by 20%, it faces competition from Microsoft and Alphabet; however, its backlog of $244 billion, up 40% year-over-year, indicates strong future earnings potential.
See More
Alphabet's Strong Performance in the AI Market
- Market Share Growth: Alphabet's Google Gemini has captured 21% of the enterprise large language model market and is poised to surpass ChatGPT's 27% share by 2025, demonstrating its competitive edge and market leadership in the AI sector.
- Strong Financial Performance: In 2025, Alphabet generated $402.8 billion in revenue, a 15% increase year-over-year, with operating income nearing $130 billion and an operating margin of 32%, indicating robust profitability amid ongoing growth.
- Capital Expenditure Plans: Alphabet anticipates capital expenditures of $175-$185 billion for 2026, exceeding analyst expectations; however, with $30.7 billion in cash reserves and strong profitability, the company is well-positioned to support its data center expansion.
- Long-Term Debt Financing: Alphabet aims to raise $20 billion through the issuance of 100-year bonds, and despite its long-term debt of $46.5 billion, the company's diversified revenue streams and strong cash flow provide a solid financial foundation for taking on additional debt.
See More
Barrier Capital Initiates Over $10 Million Position in Compass
- New Investment Move: Barrier Capital Management disclosed in an SEC filing dated February 13, 2026, that it initiated a new position in Compass (NYSE:COMP) by purchasing 952,074 shares valued at $10.06 million, indicating a strong bullish outlook on the company.
- Asset Allocation Shift: This transaction positions Compass as the sixth largest holding for Barrier Capital, representing 7.4% of its reportable assets under management, reflecting confidence in Compass's future growth potential.
- Strong Performance: Compass achieved record revenue of $1.9 billion in Q3 2026, marking a 24% year-over-year growth, and forecasts sales to reach between $1.6 billion and $1.7 billion in Q4, further solidifying its market position.
- Attractive Valuation: With a price-to-sales ratio of 0.9 and a solid balance sheet, Compass is viewed as a good investment opportunity despite not being included in Motley Fool's top stock picks, highlighting the potential for significant returns.
See More
