Sustainable Growth Advisers, LP on Alphabet Inc.
Thesis
SGA views Alphabet as a broad beneficiary of the AI investment cycle because it participates across infrastructure, foundational models, developer tools and scaled consumer applications. The company's Q1 report showed robust demand for AI compute resources, reinforcing the thesis. Its leading global platforms, network effects, direct user relationships and scaled infrastructure underpin durable pricing power and recurring revenue. Digital advertising, cloud computing and continued AI investment provide multiple long-term growth drivers. SGA raised the position target and maintained an above-average weight.
“We continue to view Alphabet as a high-quality, long-term compounder.”