The author would buy Alphabet (GOOGL, GOOG) and Amazon (AMZN) to hold for the rest of the decade, arguing the largest cloud providers will be best positioned as AI infrastructure matures. Amazon signs five-year or longer contracts with payback within two to three years, while Alphabet’s payback is around two years, and about half that when using its own TPUs. If demand slows, both can cut AI capex, generate large free cash flow, and pay down debt or buy back stock, and their custom chips may deliver better returns than providers relying on Nvidia GPUs. The article also cites Alphabet’s search leadership and Gemini features such as AI Overviews and AI Mode, and Amazon’s position as the largest e-commerce provider with strong robotics and AI-driven efficiencies.
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