Google is set to be “next-level dominant”, this investor says

In an interview on BNN Bloomberg’s Market Call on March 25, Caldwell Investment Management president and CEO Brendan Caldwell said Alphabet (Alphabet Stock Quote, Chart, News, Analysts, Financials NASDAQ:GOOGL) remains one of his preferred Magnificent Seven names, arguing the company is especially well-positioned to fold AI into an already dominant business model.

Caldwell said he has owned the stock for a long time and continues to view it as a standout among large-cap technology names because Alphabet has been able to incorporate AI into search rather than be disrupted by it. He said the market had worried new technologies could weaken Google’s position, but the company has instead adapted quickly and strengthened its core product.

His central argument was that integrating a new tool into an existing, highly profitable platform is easier than trying to build a profitable model from scratch. Caldwell said Alphabet benefits from scale across the full stack, from AI development and hardware through to user distribution, and noted the company remains the incumbent in search after more than 20 years.

“They’re the only ones that really have distribution at scale,” he said. “They are the incumbent provider, and they have been for 20-plus years.”

Rather than being displaced, Caldwell said he expects Alphabet to emerge from the current AI transition in an even stronger position.

“Far from being supplanted, I think they will be next-level dominant as we emerge from all this,” he said, adding that among the Magnificent Seven, Alphabet could end up reasserting itself as the leading player.

Alphabet shares have gained 73.71% over the past 12 months and 182.4% over five years. Among analysts covering the stock, 68 rate it “Buy,” eight rate it “Hold,” and none rate it “Sell,” with a consensus price target of US$379.30.

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