alphabet (GOOG 0.02%) (GOOGL -0.09%) is an excellent growth stock for long-term investors. Shares have risen more than 500% over the past decade as profits and sales have climbed into the billions of dollars.

All of this is due to Alphabet’s dominance in something most of us use every day – internet search. Alphabet’s Google has held around 90% of this market over time, and this position, along with the continued improvement of its capabilities and brand strength, make it a very difficult leader to dislodge.

All of this has helped the company create a booming advertising business. Advertisers, trying to reach us wherever they find us, rush to Google to promote their products and services. And today advertising accounts for the lion’s share of Alpabet’s revenue. For example, last quarter it was around 75%.

So the power of Google search is a reason to take a closer look at Alphabet. However, if you’re a growth-focused investor, here’s why you’ll definitely want to buy this top stock now.

Image source: Getty Images.

Using artificial intelligence (AI) to improve Google search

Before we dive into this exciting source of growth, let’s first take a closer look at Alphabet’s history to date. As mentioned, the company is known for its dominance in search, and the good news is that strength is likely to continue.

Alphabet has invested heavily in artificial intelligence (AI) and is applying it to its search platform to help users get better results, faster. AI Overviews, for example, gives users a preview of a topic, including links to learn more, and Alphabet recently launched it in 100 new countries.

The company’s focus on AI also helps advertisers in many ways. Alphabet’s AI, powered by the large language model Gemini, helps deliver ads to the most relevant audiences, helping advertisers create better and potentially more successful campaigns.

All of this suggests that the growth of the search business could not only continue, but even see a major rebound as better Google search attracts more users – and encourages advertisers to spend more money to reach them. Currently, however, Google’s advertising business is seeing average revenue growth of about 11% over the past three quarters.

Of course, it’s important to remember that Alphabet’s search business is at risk. US regulators recently presented closing arguments in an antitrust case against the tech giant. They are asking a federal judge to break up Google, which could include selling the Chrome web browser. It’s impossible to predict with 100 percent certainty how this will play out, but Alphabet would clearly appeal a potentially unfavorable decision – a move that would push a new decision further into the future.

Aside from the possibility of a delay, another positive for Alphabet investors is the idea that large tech split orders haven’t been easily implemented in the past. For example, about 25 years ago, a federal appeals court overturned a separation judgment Microsoft.

All of this makes me more optimistic than pessimistic about Alphabet’s long-term prospects.

A new phase of growth for this established player

Now let’s look at another Alphabet company – one that has a skyrocketing lead in terms of revenue power. And this is the business that will make you want to join the new growth phase of this established company. I’m talking about Google Cloud, Alphabet’s cloud computing unit. The company posted a 35% increase in sales last quarter after reporting a 29% increase in sales in the previous quarter.

Google Cloud also leaves cloud competitors behind, such as the world’s largest cloud provider. Amazon Web Services (AWS) when it comes to growth. Amazon reported a 19% increase in AWS revenue last quarter MicrosoftRevenue from Azure and other cloud services rose 33%.

Google Cloud revenue exceeded $11 billion in the third quarter, after second-quarter revenue and operating income hit key milestones of more than $10 billion and $1 billion, respectively. And Google Cloud has high top-line profitability, with an operating margin of 17%.

There’s reason to be optimistic that Google Cloud will maintain this momentum, as Alphabet’s investments in AI have led the company to offer more and more AI products and services. According to Alphabet, customers are leveraging Google Cloud’s AI in a variety of ways, such as leveraging AI infrastructure like chips or using the enterprise software platform to customize AI models. In its most recent earnings report, Alphabet said this helped Google Cloud win new customers and larger deals and increase product adoption among existing customers by 30%.

The AI ​​market is predicted to grow from about $200 billion today to $1 trillion by the end of the decade, and Google Cloud is well positioned to benefit. Additionally, Alphabet shares are trading at a bargain price, about 21 times expected earnings estimates.

All of this means that now is a good time to invest in this top technology company for the new wave of growth that is beginning in the cloud business.