Waymo's $10 Billion Revenue Potential and Alphabet's AI Strength

Strategic Importance of Power Access

• 💡 Securing long-term access to nuclear power is highlighted as a significant competitive advantage for tech companies like Meta.
• ⚡ This strategic move, though not impacting P&L until 2027, is crucial for managing energy costs and avoiding negative PR related to rising consumer bills.

Waymo's Growth and Valuation

• 🚀 Waymo is presented as an increasingly valuable part of Alphabet, currently undervalued in its stock price.
• 📈 With a quarter of a million rides weekly and plans for market expansion and partnerships, Waymo is projected to generate over $10 billion in revenue within three to five years.
• 💰 This growth is expected to lead to a valuation well north of $100 billion, translating to over $10 per share not currently reflected in Alphabet's stock.

Alphabet's Search Business and AI

• 🔍 While bears worry about AI like ChatGPT impacting Google's search market share, the argument is made that AI and LLMs will expand the total addressable market (TAM) for search.
• 📊 Even with a potential decrease in market share from 92% to 80-85%, the overall search pie is expected to grow, increasing the value of search results for advertisers.
• 🧠 The advent of AI is seen as having an expanding effect on search, similar to the impact of mobile in 2012.