While Wall Street continues debating the long-term winners of the AI race, Alphabet Inc. (GOOGL) may already be separating itself from other hyperscalers when it comes to actually making money from artificial intelligence.
That's according to Mo Sparks, chief product officer at Direxion, who believes Google's ability to monetize AI across chips, cloud, models and search is giving the company unusual flexibility in the current market cycle.
In comments exclusive to MarketDash, Sparks said "Google is the one that has most effectively monetized AI thus far" among the hyperscalers.
"Monetizing Gemini was a win for Google," Sparks said, while noting rivals like Amazon.com, Inc. (AMZN) and Meta Platforms, Inc. (META) faced investor concerns around free cash flow and heavy capital expenditures.
TPU Momentum Expands AI Trade
Sparks also argued Alphabet's rapidly expanding TPU business signals the AI infrastructure trade is becoming broader than just Nvidia Corp (NVDA).
"Alphabet's TPU momentum shows the expansion of the breadth of the AI infrastructure trade," he said, adding that growing demand for both GPUs and TPUs suggests the market opportunity may be larger than investors initially expected.
Still, Sparks did not frame Google's infrastructure push as outright bearish for Nvidia. Instead, he called it "a bullish sign showing how wide this trade has started to reach."
Full-Stack AI Strategy Gains Attention
According to Sparks, Google's biggest advantage may be its ability to compete across multiple layers of AI simultaneously.
"Google is approaching AI holistically and, as a result, is monetizing AI more effectively," he said.
That flexibility, he argued, allows Google to stay "nimble with whatever is in demand at any given point in time" — something Sparks suggested other hyperscalers have not fully achieved yet.
For investors, the bigger takeaway may be that the AI race is increasingly becoming about who can monetize the full stack — not just who builds the best chips.
