Alphabet Has 50% Upside and the Cheapest Multiple of the Big Six

Greg Abel, Berkshire Hathaway's new CEO, has reshaped its $364B portfolio, investing 32% ($115.7B) in AI-focused stocks: Apple (21.5%), Alphabet (9.9%), and Bending Spoons (0.4%). Abel tripled Alphabet's position and increased Bending Spoons' stake. Apple's focus is on services and AI, while Alphabet's AI integration boosted Google Cloud's revenue growth to 82%.

Meta's Q3 revenue rose 26% to $64.6B, beating estimates, with CEO Zuckerberg noting 10M Muse AI accounts. Tesla's Q3 profit fell 44% to $787M, but EPS beat estimates; Musk discussed a potential Tesla-SpaceX merger. Quest Diagnostics reported a cyber breach affecting patient records. Ukraine struck Russian data centers, disrupting services. US Treasury proposed rules to limit high-tech investments in China and other adversaries.

A New Mexico judge fined Meta $25 billion for misusing user data, marking a record penalty. Courts are increasingly holding tech giants accountable, with Meta, Google, Apple, and Amazon facing lawsuits over data privacy and antitrust issues. Legal actions have led to billions in fines and design changes, according to The New York Times.

Alphabet's Google is paying SpaceX $11 billion annually through 2029 to lease cloud infrastructure, addressing a supply bottleneck. Google, with 15% of the cloud market, lacks sufficient Nvidia GPUs for customer demand. The deal avoids long-term capital and operational costs but may pose future risks, including dependency on SpaceX and Nvidia's dominance. Google's 2025 cloud revenue was $58.7 billion, up from $19.2 billion in 2021.

Alphabet's stock fell 2.5% to $322.70 on Thursday after announcing a November launch for Google Cloud's A5X Vera Rubin instances, part of its AI infrastructure push. The success depends on attracting paying customers. Alphabet plans to expand to 960,000 Rubin GPUs, with Ineffable Intelligence as an early adopter. Shares trade 25.79% above the GF Value estimate.

The U.S. is investing $4.4 billion to restart three shuttered nuclear plants, adding 2.25 GW of power. Palisades (MI), Crane (PA), and Duane Arnold (IA) will supply Big Tech data centers. The DOE and private firms aim to meet rising demand, with restarts expected by 2027-2029. Experts debate safety and cost, but the projects are moving forward.