If you’ve been scrolling through financial Twitter or reading tech news lately, you’ve probably heard the narrative: “Google is done. ChatGPT killed it. Perplexity is the new King.”
It’s a catchy story. It’s dramatic. It’s also arguably wrong.
As we head deeper into 2026, Alphabet Inc. (GOOG/GOOGL) finds itself at a strange crossroads. On one side, you have the most aggressive competition in search history. On the other, you have a company that just posted record cloud revenues and is trading at a valuation that—compared to its “Magnificent Seven” peers—looks almost like a bargain.
So, for the Indian investor sitting on a pile of rupees waiting to deploy into US stocks: Is Google a value trap or the buy of the decade?
Let’s cut through the noise and look at the numbers.
Key Takeaways for 2026
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Search Isn’t Dead: Google still holds ~80%+ global market share. Users use ChatGPT for creativity, but they still “Google” when they need to buy something (transactional intent).
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Cloud is the Secret Weapon: Google Cloud is growing faster (34% YoY) than Amazon’s AWS, and it’s finally profitable.
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Valuation is “Cheap”: Trading at a P/E of roughly 20-25x, Google is significantly cheaper than Nvidia or Microsoft.
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Regulatory Bullet Dodged: The 2025 antitrust ruling blocked a forced breakup (for now), removing a massive cloud of uncertainty.
The AI Elephant in the Room: Search vs. Chat
Let’s address the biggest fear first: Is AI Search stealing Google’s lunch?
Yes and no.
Data from late 2025 shows a clear split in user behavior. If you want to write a poem, code a Python script, or brainstorm a marketing strategy, you go to ChatGPT or Claude. That’s “Generative” intent, and Google has lost ground there (holding only ~29% share vs ChatGPT’s 64%).
But here’s the kicker: If you want to buy a pair of Nikes, find a plumber in Delhi, or check the stock price of HDFC Bank, you still use Google.
Google dominates “Transactional” intent with a 90% share. Why does this matter? Because transactional queries are where the ads are. Advertisers don’t pay big money for poetry prompts; they pay for clicks that lead to sales. As long as Google owns the “I want to buy X” queries, their revenue fortress remains intact.
Furthermore, Google isn’t sitting still. With Gemini integrated into the workspace and Android ecosystem, they are forcing their way back into the conversation. They have a distribution advantage that startups simply can’t match: Android.
The Cloud Wars: Google’s New Profit Engine
While everyone obsessively watches the Search bar, the real magic is happening in the data center.
For years, Google Cloud Platform (GCP) was a money pit, burning cash to catch up with Amazon (AWS) and Microsoft (Azure). That era is over. In 2025, GCP didn’t just turn a profit; it exploded.
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Market Share: ~13% (growing).
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Revenue Growth: ~34% Year-over-Year (outpacing AWS).
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AI Leadership: Their TPU (Tensor Processing Unit) chips are becoming the go-to alternative for companies who can’t get their hands on Nvidia GPUs.
Think of it this way: Even if Search growth slows down to single digits, Cloud is primed to grow at 20-30% for the next few years. That is a massive safety net for the stock price.
The “Breakup” That Wasn’t
In September 2025, Alphabet investors collectively held their breath. The US Department of Justice (DOJ) was pushing to force Google to sell off Chrome or Android to break its monopoly.
The judge’s ruling? “No breakup.”
While Google has to share some data with rivals and stop exclusive deals (like paying Apple billions to be the default search engine on Safari), the core company stays together. This was a massive win. The market hates uncertainty, and the threat of a forced split was keeping the stock price depressed. With that risk largely removed, the stock has room to breathe—and climb.
Valuation: The Value Play of the “Mag 7”?
Here is where it gets interesting for the value-conscious investor.
Most AI stocks are priced for perfection. If Nvidia misses an earnings beat by 1%, the stock tanks. Google, however, is priced with pessimism baked in.
| Metric | Alphabet (Google) | Microsoft | Nvidia |
| P/E Ratio (Est) | ~21x | ~32x | ~40x+ |
| Revenue Growth | ~14-15% | ~15% | ~50%+ |
| Risk Profile | Moderate | Low | High |
If you are buying Google today, you aren’t paying a premium for AI hype. You are paying a reasonable price for a cash-flow machine that owns YouTube, Android, Search, and a top-tier Cloud business.
FAQ: Your Questions Answered
Q: Is Google stock a buy for Indian investors in 2026?
A: If you are looking for stability with growth potential, yes. It offers exposure to the US Dollar and AI without the extreme volatility of pure-play AI chip stocks.
Q: Will ChatGPT eventually kill Google Search?
A: “Kill” is a strong word. It will likely fragment search. Google might lose 10-20% of its volume over the next decade, but it will likely retain the most profitable (commercial) queries.
Q: How does the INR/USD rate affect my investment?
A: Since you buy US stocks in Dollars, a depreciating Rupee (which is historically the trend) actually boosts your returns when you convert back to INR. This acts as a hedge against inflation in India.
Q: What is the price target for 2026?
A: While we can’t give financial advice, many analysts see a path to a $5 Trillion market cap for Alphabet if their Cloud division continues its current trajectory.
The Verdict
Google is no longer the undisputed, untouchable king of the internet. It has bruises. It has competitors.
But a bruised King is still a King.
With the antitrust worst-case scenario off the table, a booming cloud business, and a valuation that looks downright cheap compared to its peers, the Google share price outlook is bullish. The market has overreacted to the AI threat, creating a window of opportunity for smart money.