TLDR
- Alphabet stock trades at 27 times earnings, below the S&P 500 average of 32, with Google Cloud growing to 14% of total revenue
- Meta Platforms reaches 3.5 billion daily users and is investing $70-72 billion in AI capital expenditures this year
- Micron Technology posted 49% revenue growth in fiscal 2025 as the only U.S. manufacturer of high-bandwidth memory chips
- Digital advertising revenue at Meta grew 22% in the first three quarters of 2025 despite a 9% drop in net income
- Alphabet plans $91-93 billion in capital expenditures for 2025, focusing on AI infrastructure and cloud computing expansion
Several major tech companies remain attractively priced while others see valuations soar. Three established firms are making substantial AI investments while trading below broader market multiples. These companies show revenue growth and strategic positioning in the artificial intelligence sector.
Alphabet Shows Value Despite Stock Gains
Alphabet has risen 50% this year but still trades at 27 times earnings. This P/E ratio sits below the S&P 500 average of 32. The company is allocating $91 billion to $93 billion toward capital expenditures in 2025.
Google Cloud represents a growing portion of business operations. The division now accounts for 14% of revenue in the first three quarters of 2025. This marks an increase from 12% in the prior year.
The Waymo autonomous driving platform continues expanding across cities. This provides diversification beyond the core search advertising business. The company has responded to AI search competition with its own AI tools and platforms.
Meta Platforms Expands AI Capabilities
Meta Platforms operates at 28 times earnings with massive user reach. Facebook, Instagram, and WhatsApp combine for over 3.5 billion daily active users. This represents roughly 43% of the global population.
The company generated 22% revenue growth in the first three quarters of 2025. Digital advertising still comprises 98% of total revenue. Meta is spending $70 billion to $72 billion on capital expenditures this year.
Net income declined 9% in the first three quarters of 2025. Higher income tax expenses negated a 27% rise in operating income. The stock has increased about 10% year to date.
Meta is leveraging user data to develop AI models. The company plans to integrate these tools across its social media platforms. Current AI applications primarily support the advertising business.
Micron Capitalizes on Memory Chip Growth
Micron Technology has shifted from cyclical patterns to growth trajectory. The company specializes in memory chip design and manufacturing. AI applications have driven demand for specialized memory products.
The company holds unique market position as the sole U.S. producer of high-bandwidth memory. Only three manufacturers globally produce HBM chips. These components are critical for AI accelerator performance.
Fiscal 2025 brought 49% revenue growth for Micron. The period ended August 28 with net income rising 11 times year over year. The stock has climbed 125% in 2025.
Micron currently trades at 30 times trailing earnings. The forward P/E ratio stands at just 13. This reflects analyst expectations for continued earnings expansion from AI chip demand.
The memory chip sector has historically experienced boom and bust cycles. Previous downturns often eliminated gains from growth phases. High-bandwidth memory demand has altered this pattern for Micron.
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