Alphabet Stock And 2 AI Infrastructure Picks For Cloud And Data Center Growth

Artificial intelligence is moving from buzzword to real-world tool, as companies across chips, cloud, software and large language models respond to new demand for automation and productivity. At the same time, investors are weighing energy driven inflation risks, central bank decisions and mixed growth signals across the US, Europe and Asia. That mix of uncertainty and opportunity is exactly where an AI Stocks screener can help, by filtering for businesses directly tied to the ChatGPT and AI build out. In this article, you will see three stocks from that screener and the key factors that make them notable in the current environment.

Intel (INTC)

Overview: Intel is a US-based semiconductor company that designs and manufactures chips and related computing hardware for PCs, servers, data centers and AI workloads, selling primarily to large equipment manufacturers, cloud providers and other technology companies worldwide.

Market Cap: US$465.7b

Intel sits at the center of the AI build out, with data center and AI server chips, advanced packaging and a growing foundry business all positioned to benefit if AI infrastructure spending stays high. Its CHIPS Act backed manufacturing plans and high profile partnerships with companies such as Google Cloud and Fortinet underline its role in critical US capacity. At the same time, Intel is still loss making and working through organizational complexity, leadership turnover and higher financial risk as it funds heavy capital spending and a foundry pivot, so execution on new process nodes and external customer wins matters a lot. That mix of AI potential, restructuring and risk is why many investors are watching Intel closely, but the full story runs deeper than that summary.

Intel’s AI pivot is accelerating, but the real question is whether the balance of chip leadership, CHIPS Act spending and foundry risk stacks up. Review the 1 key reward and 3 important warning signs

SAP (XTRA:SAP)

Overview: SAP is a German software company that helps large organizations run core functions like finance, supply chain, HR and customer relationships through integrated cloud and on premise applications, now increasingly infused with SAP Business AI and automation tools.

Operations: SAP generates most of its revenue from Applications, Technology & Support at about €34.3b, with around €3.9b from Core Services across support, services and related offerings.

Market Cap: €161.8b

Investors looking at AI may pay attention to SAP because it sits inside the operational plumbing of global enterprises, where cloud ERP, automation and embedded AI agents can directly change how money, inventory and people are managed. Recent results report double digit cloud and total revenue growth, margins around 20% and a strong return on equity. Some sources describe the stock as trading well below certain fair value estimates, and analysts continue to debate how much of the AI and cloud opportunity is already reflected in the price. SAP is funding this shift with external borrowing and higher AI spend, which weighs on near term profit guidance and keeps execution risk in focus for anyone considering the stock.

SAP’s cloud and AI revenue mix is accelerating, yet the valuation story still feels incomplete. See how analysts are framing that gap in the analyst forecasts for SAP and what might be quietly shifting under the surface.

Alphabet (GOOGL)

Overview: Alphabet is the parent company behind Google Search, YouTube, Android and Google Cloud, earning most of its money from online advertising while also selling cloud computing, AI tools, subscriptions and hardware to consumers and businesses worldwide.

Operations: Alphabet generates most of its revenue from Google Services at about US$367.1b, with around US$77.6b from Google Cloud and US$1.5b from Other Bets, while unallocated hedging losses of roughly US$0.3b slightly offset this.

Market Cap: US$3.9t

Alphabet sits at the intersection of digital ads, AI and cloud. Google Search and YouTube generate significant cash. Google Cloud is developing as a major AI platform, and in house chips such as TPUs aim to serve rising demand for AI infrastructure. At the same time, the stock is tied to large AI data center spending that has recently pushed free cash flow into negative territory and raised questions about how quickly those US$195b to US$205b in 2026 capex plans might pay off. In addition, ongoing regulatory scrutiny in the US and Europe creates further uncertainty. Overall, this is a business with strong profitability, high margins and a growing AI backlog, but also real trade offs that investors need to weigh carefully.

Alphabet’s AI capex surge, strong profitability and high margins could be masking where the real upside and pressure points sit. See how investors are framing that balance in the analysis report for Alphabet

The three AI stocks in this article are just a starting point, and the full screener surfaced 665 more companies tied into chips, cloud, LLMs and AI transformation that could have equally compelling stories behind them in the Artificial Intelligence/ AI Stocks screener. Use Simply Wall St to identify, filter and analyze the specific catalysts and narratives that matter to you so you can focus on the highest conviction opportunities in the AI space.

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Seeking Alternatives Beyond These AI Giants?

Fresh opportunities can move from quiet to flying quickly, and today’s under the radar ideas may not stay hidden for long, so scan these themed lists and act now.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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