Buy this AI stock to own SpaceX pre-IPO and hold it with the Robotaxis boom
letters(NASDAQ: GOOG)(NASDAQ: Google) Perhaps one of the most practical public market ways to get SpaceX private before its IPO. But SpaceX isn’t the only, or even the main, reason to buy the stock.
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Alphabet already has a profitable artificial intelligence (AI) business, a rapidly scaling cloud platform and one of the most advanced robotics operations at Waymo. SpaceX adds another layer of upside and further strengthens the company’s long-term growth story.
Waymo has significant upside potential
Goldman Sachs The global robotics market is expected to reach nearly $415 billion by 2035, with nearly $48 billion of that prospect accounted for in the US. This rapidly expanding robotics opportunity may be one of the important reasons to keep Alphabet in the long run.
Alphabet’s Waymo is no longer an experimental autonomous-driving project in the company’s Other Pets division. In February 2026, Waymo raised $16 billion at a $126 billion valuation, nearly tripling its reported $45 billion valuation in 2024. That gives investors a good sense of how valuable Waymo could become to Alphabet.
Waymo expects to complete 15 million rides by 2025 and provide more than 400,000 rides per week in six major US metro areas by February 2026. However, in April 2026, Waymo surpassed 500,000 fully autonomous rides per week, according to Alphabet. This criterion is important because the robotaxi business does not rely solely on robust autonomous-driving software. Each new market requires regulatory approvals, charging and parking infrastructure, service personnel, fleet operations and rider confidence. Waymo’s growing ridership and multi-city rollout suggest it’s focused on building this competitive advantage.
Alphabet is also gearing up to scale this business. Waymo’s Mesa, Arizona facility is expected to be capable of producing tens of thousands of fully autonomous vehicles per year at full capacity. Waymo is also expanding its presence in several cities, including Dallas, Houston, San Antonio and Orlando. The company is eyeing to enter more than 20 additional cities by 2026. Uber Technologies Waymo will help Austin and Atlanta reach more riders at a lower cost.
So, when Tesla Dominating investors’ attention on autonomous driving, Waymo already has paid rides, outside funding, urban expansion, manufacturing capacity and a growing business footprint. Waymo is one of the few robotics platforms with operational scale visible today.
SpaceX strengthens the long-term case
Alphabet (then called Google) and Fidelity invested $1 billion in SpaceX in 2015. Alphabet reportedly acquired a roughly 7% stake for an investment of $900 million. However, the company’s current SpaceX exposure appears to have diluted over time. According to a filing with Alaska, the stake is said to be around 6.11% by the end of 2025. Bloomberg now values Alphabet’s stake at 5% after merging SpaceX’s stake with xAI.
If SpaceX were to list at an expected $1.75 trillion valuation, Alphabet’s shares would be worth nearly $87.5 billion. That alone may not boost Alphabet’s stock price, given the company’s massive $4.5 trillion market cap. But it could improve overall public sentiment toward Alphabet’s broader investment portfolio.
Alphabet offers indirect exposure to SpaceX alongside a true robotics leader and profitable niche business. It balances the risk-reward better than buying in a single high-end IPO at an aggressive valuation.
AI and Cloud are key growth catalysts
AI and cloud businesses are key growth drivers for Alphabet. In the first quarter of fiscal 2026 (ending March 31, 2026), Google Cloud revenue rose 63% year-over-year to $20 billion, driven by solid demand for enterprise AI solutions, enterprise AI infrastructure and core Google Cloud Platform services. Google Cloud’s operating income rose nearly 203% year-over-year to about $6.6 billion. This shows that this segment is becoming a major profit contributor. Google Cloud’s backlog more than doubled to $460 billion at the end of the first quarter, highlighting the company’s impressive revenue visibility.
Alphabet is working to monetize its AI capabilities through advertising, cloud infrastructure subscriptions, and enterprise and consumer tools. In the first quarter, Google Cloud products revenue grew nearly 800% year-over-year on the AI models it builds. Paid monthly active users for Gemini Enterprise also grew 40% sequentially in the first quarter. Alphabet’s AI stack extends beyond Gemini. The company’s custom tensor processing units, Axion CPUs and Nvidia Graphics processing units enable enterprise demand across infrastructure, models, platforms, tools, and AI agents.
However, investing in Alphabet is not without risks. The company’s massive AI capex should translate into sustained revenue and profit growth. While Google search remains profitable, AI-powered chatbots and changing user behavior could gradually erode its margins. The company is also exposed to regulatory pressures stemming from antitrust investigations. It could be years before Waymo continues to turn a profit. Finally, SpaceX’s rich IPO valuation leaves little room for further valuation of Alphabet’s stock.
However, Alphabet still offers an impressive risk-reward combination. Investors are getting robotics, SpaceX and AI opportunities in a company that already has a highly profitable core business. Alphabet is well positioned as a balanced tech stock to own for the long term.
Should you buy shares in Alphabet now?
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Manali Pradhan, CFA has no position in any of the listed stocks. Motley Fool owns and recommends positions in Alphabet, Goldman Sachs Group, Nvidia, Tesla and Uber Technologies. The Motley Fool has a disclosure policy.
The Motley Fool was originally published by The Motley Fool to own SpaceX pre-IPO to buy this AI stock and hold it through the robotaxi boom.
