Bill Ackman’s Pershing Square Capital allocates 10.52% of its portfolio to Alphabet, underscoring investor faith in the company’s dominant search and rapidly expanding cloud business. Alphabet sustains roughly 90% share of global internet search, and its recent introduction of AI overviews and AI Mode has further fueled query growth, demonstrating that its AI investments are enhancing user engagement rather than displacing it. On the cloud front, Alphabet reported a backlog of $155 billion at the end of the third quarter—a 46% increase quarter over quarter—highlighting strong enterprise demand for its infrastructure and AI services. This combination of a digital ad monopoly, search enhancements powered by Gemini, and surging cloud commitments makes Alphabet a cornerstone holding for long-term investors.

Alphabet is emerging as a leader in quantum hardware development through its in-house Willow chip, unveiled in late 2024. This custom processor demonstrably reduces error rates exponentially as qubit counts scale, overcoming one of quantum computing’s most stubborn obstacles. In its most recent test, Alphabet executed a verifiable quantum algorithm on Willow that outperformed the top classical supercomputers, marking a pivotal step toward practical, real-world applications. These breakthroughs, coupled with sustained R&D investment, position Alphabet to capture significant value if quantum workloads transition from experimental to commercial deployment.