Cathie Wood Just Bought Alphabet. Here’s What She Sees That the Rest of the Market Is Missing

By Joey Frenette Published May 6, 9:47AM EDT

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Alphabet (GOOG) is trading at under 30x trailing P/E while Ark Invest recently bought shares.
Alphabet has multiple underpriced growth catalysts including AI agents, quantum computing advancement, and Google Search resilience that could drive sustained rallies as investors recognize disruptive innovations not yet reflected in the stock price.

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Cathie Wood Just Bought Alphabet. Here’s What She Sees That the Rest of the Market Is Missing — © JHVEPhoto / iStock Editorial via Getty Images

Cathie Wood’s Ark Invest has warmed up some of the cheaper Magnificent Seven members of late, recently picking up a big chunk of shares of Alphabet (NASDAQ:GOOG | GOOG Price Prediction), reportedly worth less than $30 million, in addition to Meta Platforms (NASDAQ:META). As far as disruptive innovations go, it’s certainly tough to top Alphabet these days, especially after that sensational quarter, which, I think, might lead to a sustained rally that extends through the summer.

Any way you look at it, Alphabet seems to be turning doubters into believers, and Ark Invest’s latest round of buying, I think, signifies that investors might not need to look all too far for disruptive growth. They might not have to pay all too high a price for that growth, either, with shares still going for under 30.0 times trailing price-to-earnings (P/E).

While it’s tough to tell how long Cathie Wood and Ark Invest plan to hang onto their shares of Alphabet, I do think the mega-cap AI icon is as well set up as any frontier AI innovator, especially as investors await a powerful agentic-enabled version of Gemini while Google’s “AI Mode” continues to power engagement over at Google Search, which doesn’t seem to be losing any sort of stride.

It’s not just Google’s resilience in Search or Gemini’s impressive spot in the AI race (that includes chips with its impressive TPUs) that makes the firm a growth play with a disruptive twist. The firm also seems to have its ticket to quantum computing, a nascent technology that might eventually be ready to take the stage.

Willow might be one of the most disruptive wildcards there is

While Google’s Willow quantum processor moved the needle previously, we just haven’t heard nearly as much from one of Google’s most exciting and perhaps under-the-radar forward-thinking innovations.

At this juncture, Google also stands out as at the frontier in quantum. And it’s certainly on the fast track to quantum supremacy as Willow looks to solve even more problems previously thought impossible for classical computers. Even if you’re aware of the quantum innovations going on behind the scenes at Google, it’s easy to dismiss the tech.

Nobody knows when quantum will be useful enough that it becomes the talk of the town, as AI is these days. But it’s this uncertainty that makes the field compelling, especially since Willow is already tackling some benchmark tasks in record time.

Meanwhile, firms in the enterprise look to prep for the risks of Q-Day, a distant (or at least that’s what many seem to think) risk which has arguably already worked its way through the crypto markets. And with Nvidia (NASDAQ:NVDA) already investing quite a bit in NVQLink and a whole lineup of quantum-enabling tools, it certainly feels like a quantum leap is more than just a thing of speculative science fiction.

From quantum AI to agentics, there’s a lot of magic that’s not priced in

For Alphabet shareholders, investors are pretty much getting a reservation to the rise of quantum, whenever that may be. The timing remains uncertain, but it doesn’t seem like the Google Quantum AI division is fully priced in here.

Of course, the timelier opportunity lies in agentic AI. While agents have garnered significant traction in the past year, it will be very interesting to see how Google responds to something like OpenClaw or Nvidia’s very impressive NemoClaw. Reportedly, Google is hard at work on an OpenClaw-like offering with the codename “Remy.”

Nobody knows when Google’s agentic wave of disruption will hit hard enough to send the numbers to the next level. But the firm certainly has all the ingredients to do it better than almost anyone else. With Google I/O 2026 on tap later this month, perhaps we’ll get a glimpse as to what the future could hold for Google as it looks to launch a brand-new frontier-grade AI model while showing off more of what its agents can do.

The bottom line

It might not feel great to chase Google as Alphabet shares near $400 per share. Still, Ark Invest’s stamp of approval, I think, is not only encouraging for the value to be had at these levels, but is a big vote of confidence in the disruptive innovation that the rest of the market might be overlooking.

About the Author Joey Frenette →

Joey is a 24/7 Wall St. contributor and seasoned investment writer whose work can also be found in publications such as The Motley Fool and TipRanks. Holding a B.A.Sc in Computer Engineering from the University of British Columbia (UBC), Joey has leveraged his technical background to provide insightful stock analyses to readers.

Joey's investment philosophy is heavily influenced by Warren Buffett's value investing principles. As a dedicated Buffett disciple, Joey is committed to unearthing value in the tech sector and beyond.