Alphabet Edges Out SpaceX as Top AI Stock

The performance of Alphabet's AI division is often compared to that of SpaceX. However, while Alphabet may be considered an AI stock, SpaceX also has a rapidly growing AI business.

In fact, SpaceX's AI division tripled in revenue over the past year, generating $2.56 billion in Q2 alone. This growth rate far surpasses what Alphabet achieved during the same period.

However, when looking at Alphabet's cloud computing business, Google Cloud, it becomes clear that this segment is a major contributor to the company's overall revenue. In Q2, Google Cloud generated $24.8 billion in revenue, an 82% year-over-year increase.

This growth outpaces SpaceX's total revenue of $7.8 billion during the same period. Furthermore, Alphabet's cloud computing business is profitable, producing an operating profit of $8.8 billion in Q2. In contrast, SpaceX reported a loss from operations of $143 million.