STOCKS | Alphabet Shares Seen as Undervalued Despite Higher AI Spending and Regulatory Pressure

Alphabet stock is being described as undervalued even as the company faces rising AI-related capital spending and ongoing regulatory pressure. According to NS3.AI, the analysis points to Alphabet trading at a 26.9x forward price-to-earnings multiple. The analysis also cites Alphabet’s near 38% net profit margin and reports Q1 2026 revenue of $109.9 billion as supporting data for the valuation view.