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to the expansion of its robotaxi business, Waymo.10 stocks we like better than Alphabet ›Whenever a publicly traded business faces a big risk or unknown, that can weigh on its valuation. For Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), the tech giant that owns Google and YouTube, the big concern recently was that antitrust lawsuits would result in it being forced to sell off key parts of its business.Although Judge Amit P. Mehta did rule earlier this month that the company has operated a monopoly in search, he did not impose the most severe consequences that federal regulators had asked for. Alphabet still faces a different antitrust case involving its ad tech, but investors were most worried about the possibility of it having to sell its Chrome browser or Android operating system. With those remedies apparently off the table, the stock rallied over the past few weeks. But was that just the start? Can it soar even higher?Image source: Getty Images.For a while now, Alphabet has been trading at a discounted valuation relative to its earnings. It hasn't been uncommon for it to trade at a price-to-earnings (P/E) multiple below 20, which is low when you consider the average stock on the S&P 500 trades at more than 25 times its trailing earnings.Alphabet has routinely been one of the most undervalued "Magnificent Seven" stocks, and although it has been rallying recently, it's still the cheapest stock based on its P/E multiple, which currently sits at around 27.PE Ratio of Magnificent Seven data by YCharts.Alphabet's relatively modest valuation could attract interest from investors who are looking for potentially underrated artificial intelligence (AI) stocks, especially when you consider its growth potential.Many investors have been worried about Alphabet's growth outlook, fearing the potential of AI chatbots to divert traffic away from websites and search products, which would cut into its ad revenue. Yet despite the rise of this new tech, its business has continued to generate solid results. Through the first half of 2025, Alphabet generated revenue of $186.7 billion, an increase of 13% from the same period last year. And its net income rose by 33% to $62.7 billion.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,643.70 +38.98 (+0.59%)Dow 3046,247.29 +299.97 (+0.65%)Nasdaq22,484.07 +99.37 (+0.44%)Russell 20002,434.32 +23.28 (+0.97%)VIX15.29 -1.45 (-8.66%)Gold3,809.00 +37.90 (+1.01%)PortfolioSign in to access your portfolioSign inTop gainersCRNX Crinetics Pharmaceuticals, Inc. 45.91 +10.02 (+27.92%)QMMM QMMM Holdings Limited 119.40 +19.40 (+19.40%)EA Electronic Arts Inc. 193.35 +25.03 (+14.87%)SRRK Scholar Rock Holding Corporation 38.75 +4.26 (+12.35%)PPTA Perpetua Resources Corp. 21.16 +2.16 (+11.37%)Top losersCNXC Concentrix Corporation 47.66 -7.33 (-13.33%)MP MP Materials Corp. 68.63 -8.50 (-11.02%)KC Kingsoft Cloud Holdings Limited 15.64 -1.83 (-10.48%)IREN IREN Limited 41.86 -4.43 (-9.57%)OKLO Oklo Inc. 110.53 -8.60 (-7.22%)Most activeINTC Intel Corporation 35.50 +1.51 (+4.44%)OPEN Opendoor Technologies Inc. 8.81 -0.28 (-3.08%)SNAP Snap Inc. 8.27 -0.06 (-0.72%)NVDA NVIDIA Corporation 178.19 +0.50 (+0.28%)F Ford Motor Company 12.01 +0.39 (+3.36%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersFWONK Formula One Group 104.93 +0.97 (+0.93%)PPL PPL Corporation 36.72 +0.56 (+1.55%)FIG Figma, Inc. 52.91 -1.48 (-2.72%)XRP-USD XRP USD 2.78 -0.00 (-0.04%)PSTV Plus Therapeutics, Inc. 0.6171 +0.0541 (+9.61%)Top economic events