SGA Raised Its Bet on Alphabet (GOOG) as AI Demand Accelerates

Sustainable Growth Advisers (SGA) boosted its stake in Alphabet Inc. (GOOG) amid surging demand for artificial intelligence (AI). The investment management firm's second-quarter 2026 investor letter highlighted Alphabet as a major contributor to its performance, driven by the AI investment cycle. Alphabet's diverse portfolio of platforms and services, including online search, advertising, cloud solutions, and AI, positioned it well to benefit from the AI boom.

The company's Q1 report indicated strong ongoing demand for its AI compute resources, leading to a positive outlook for the stock. Despite Alphabet's solid fundamentals, other holdings in the SGA portfolio lagged in terms of revenue and earnings growth, but most were beating expectations. SGA remains bullish on Alphabet, maintaining its above-average weight and emphasizing its long-term compound nature and ability to benefit from digital advertising, cloud computing, and ongoing AI innovation.