{"id":94585,"topic":"ai","source":"The Globe and Mail","title":"Got $1,000? 2 Growth Stocks Building the Software Backbone of Artificial Intelligence. - The Globe and Mail","url":"https://www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","url_hash":"91fc747cf2e7e7b9002c4f261dfbfcb07b8a6e82","author":"","summary":"Got $1,000? 2 Growth Stocks Building the Software Backbone of Artificial Intelligence. The Globe and Mail","content":"Key Points\n- Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. \n- Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software. \n- Despite this recent success, both stocks still look relatively inexpensive. \nCompanies that provide infrastructure for artificial intelligence (AI) are getting a lot of attention right now because tech companies are expected to spend an estimated $1.3 trillion on AI infrastructure next year alone.\nAnd while that's certainly fueling share price gains for some companies, the main driver of demand for such hardware is the advancement of AI software and models.\nMissed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a \"Double Down\" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same \"Total Conviction\" signal is flashing for a company 1/100th the size of Nvidia. Continue »\nTwo growth stocks that are at the forefront of AI software are Microsoft(NASDAQ: MSFT) and Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL). Here's why it's worth putting $1,000 toward these stocks right now.\nMicrosoft's early AI lead is already paying off\nMicrosoft was an early investor in OpenAI and benefited from early access to ChatGPT and the ability to integrate the chatbot into many of its business software products. And although Microsoft doesn't have the same exclusivity with ChatGPT as it once did, it is a leading AI software company more than ever.\nThe latest example of this is the company's new Copilot app, which is an AI hub to help workers and consumers be more productive. Copilot can be downloaded to your desktop and includes an AI agent called Autopilot, Code for programming, Cowork for getting tasks done, and AI-powered Office apps all in one place. Microsoft calls it \"your new OS for work.\"\nThe company is betting that it can build AI services on top of its solid enterprise software foundation. Even before the new Copilot app was launched, Microsoft already had 30 million paid Copilot subscribers, a 50% increase from just a few months earlier.\nCopilot is a crucial new piece of the company's expanding AI menu, which includes its increasingly important Azure AI cloud computing business. By offering more advanced AI software to its customers, management will likely not only increase its paid Copilot subscriptions but also its AI cloud sales.\nMany of its business customers use Azure for their cloud needs because it integrates easily with their existing software. In its fiscal 2026 fourth quarter ended June 30, Azure AI cloud revenue reached an annual run rate of $100 billion. Reaching that milestone means that Microsoft AI services are resonating with customers and that they are already a success.\nAlphabet's AI models and leading software\nAlphabet is in a similar position as the company integrates more AI tools into its popular software. The company's YouTube, Chrome browser, Search tool, and Workspace apps have all been centered around the technology.\nThe one benefit Alphabet may have over Microsoft is that Google has its own frontier AI model in Gemini, allowing it to build a proprietary AI system from the ground up for its products.\nAnd there's already plenty of evidence that Gemini is paying off. Chief Executive Officer Sundar Pichai recently said that nearly 90% of Fortune 100 companies use Gemini Enterprise, a suite of software that includes AI-powered Workspace apps, Google Cloud features, and agentic capabilities.\nThe company said that millions of users, including Intel and PepsiCo, are employing Gemini Enterprise to automate their workflows and build AI agents. This usage is helping to boost Google Cloud sales, with revenue rising 82% in the second quarter to nearly $25 billion.\nAlphabet is also making money from Gemini by selling access to Apple for that company's new Siri AI. Gemini is the foundational model for Apple's new service, and Alphabet is reportedly receiving $1 billion annually as part of the deal.\nThe combination of Alphabet integrating Gemini into its own services, increasing cloud sales, and growing revenue from licensing parts of it to Apple shows just how far-reaching the company's AI software strategy is.\nBoth are great long-term AI stocks\nBoth Microsoft and Alphabet are already firmly established software companies, and both are proving that they can benefit from the new AI era, rather than be disrupted. That's not easy, and investors should view their current success in this sector as a sign that they will likely continue to play leading roles in AI for years to come.\nWhat's more, Alphabet has a trailing price-to-earnings ratio (P/E) of less than 18, and Microsoft's P/E is about 28, both of which are considerably lower than the tech sector average of 34. Which means putting $1,000 toward these AI software stocks right now is not only a smart long-term bet but also a relatively good deal.\nChris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Intel, and Microsoft. The Motley Fool has a disclosure policy.","image_url":"https://www.theglobeandmail.com/pf/resources/assets/meta/twitter-summary-240x240.png?d=969","lang":"en","published_at":"2026-10-02T08:58:47+00:00","fetched_at":"2026-10-02T11:15:03+00:00","status":"read","starred":0,"extract_state":"ok","summary_auto":"Key Points\n- Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. - Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software.","cluster_id":null,"extract_retries":0,"extract_error":null,"contract_version":"news_item.v1","format_contract_version":"news_item_formats.v1","dedup_url":"https://www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 5169 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":5169,"summary_length":273,"usable_text_length":5169,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":5169,"summary_length":273}},"news_item":{"id":94585,"canonical_url":"https://www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","source_url":"https://www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","title":"Got $1,000? 2 Growth Stocks Building the Software Backbone of Artificial Intelligence. - The Globe and Mail","source_name":"The Globe and Mail","author":null,"published_at":"2026-10-02T08:58:47+00:00","locale":"en","topic":"ai","tags":[],"rss_summary":"Got $1,000? 2 Growth Stocks Building the Software Backbone of Artificial Intelligence. The Globe and Mail","full_text":"Key Points\n- Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. \n- Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software. \n- Despite this recent success, both stocks still look relatively inexpensive. \nCompanies that provide infrastructure for artificial intelligence (AI) are getting a lot of attention right now because tech companies are expected to spend an estimated $1.3 trillion on AI infrastructure next year alone.\nAnd while that's certainly fueling share price gains for some companies, the main driver of demand for such hardware is the advancement of AI software and models.\nMissed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a \"Double Down\" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same \"Total Conviction\" signal is flashing for a company 1/100th the size of Nvidia. Continue »\nTwo growth stocks that are at the forefront of AI software are Microsoft(NASDAQ: MSFT) and Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL). Here's why it's worth putting $1,000 toward these stocks right now.\nMicrosoft's early AI lead is already paying off\nMicrosoft was an early investor in OpenAI and benefited from early access to ChatGPT and the ability to integrate the chatbot into many of its business software products. And although Microsoft doesn't have the same exclusivity with ChatGPT as it once did, it is a leading AI software company more than ever.\nThe latest example of this is the company's new Copilot app, which is an AI hub to help workers and consumers be more productive. Copilot can be downloaded to your desktop and includes an AI agent called Autopilot, Code for programming, Cowork for getting tasks done, and AI-powered Office apps all in one place. Microsoft calls it \"your new OS for work.\"\nThe company is betting that it can build AI services on top of its solid enterprise software foundation. Even before the new Copilot app was launched, Microsoft already had 30 million paid Copilot subscribers, a 50% increase from just a few months earlier.\nCopilot is a crucial new piece of the company's expanding AI menu, which includes its increasingly important Azure AI cloud computing business. By offering more advanced AI software to its customers, management will likely not only increase its paid Copilot subscriptions but also its AI cloud sales.\nMany of its business customers use Azure for their cloud needs because it integrates easily with their existing software. In its fiscal 2026 fourth quarter ended June 30, Azure AI cloud revenue reached an annual run rate of $100 billion. Reaching that milestone means that Microsoft AI services are resonating with customers and that they are already a success.\nAlphabet's AI models and leading software\nAlphabet is in a similar position as the company integrates more AI tools into its popular software. The company's YouTube, Chrome browser, Search tool, and Workspace apps have all been centered around the technology.\nThe one benefit Alphabet may have over Microsoft is that Google has its own frontier AI model in Gemini, allowing it to build a proprietary AI system from the ground up for its products.\nAnd there's already plenty of evidence that Gemini is paying off. Chief Executive Officer Sundar Pichai recently said that nearly 90% of Fortune 100 companies use Gemini Enterprise, a suite of software that includes AI-powered Workspace apps, Google Cloud features, and agentic capabilities.\nThe company said that millions of users, including Intel and PepsiCo, are employing Gemini Enterprise to automate their workflows and build AI agents. This usage is helping to boost Google Cloud sales, with revenue rising 82% in the second quarter to nearly $25 billion.\nAlphabet is also making money from Gemini by selling access to Apple for that company's new Siri AI. Gemini is the foundational model for Apple's new service, and Alphabet is reportedly receiving $1 billion annually as part of the deal.\nThe combination of Alphabet integrating Gemini into its own services, increasing cloud sales, and growing revenue from licensing parts of it to Apple shows just how far-reaching the company's AI software strategy is.\nBoth are great long-term AI stocks\nBoth Microsoft and Alphabet are already firmly established software companies, and both are proving that they can benefit from the new AI era, rather than be disrupted. That's not easy, and investors should view their current success in this sector as a sign that they will likely continue to play leading roles in AI for years to come.\nWhat's more, Alphabet has a trailing price-to-earnings ratio (P/E) of less than 18, and Microsoft's P/E is about 28, both of which are considerably lower than the tech sector average of 34. Which means putting $1,000 toward these AI software stocks right now is not only a smart long-term bet but also a relatively good deal.\nChris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Intel, and Microsoft. The Motley Fool has a disclosure policy.","excerpt":"Key Points\n- Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. - Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software.","extraction":{"state":"ok","confidence":0.9,"error":null,"explanation":"High confidence: full text extraction produced 5169 characters.","diagnostics_url":"/api/diagnose?url=https%3A//www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 5169 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":5169,"summary_length":273,"usable_text_length":5169,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":5169,"summary_length":273}}},"display_formats":["compact","card","full","digest_section","json"]},"daily_stack_record":{"title":"Got $1,000? 2 Growth Stocks Building the Software Backbone of Artificial Intelligence. - The Globe and Mail","url":"https://www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","summary":"Key Points\n- Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. - Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software.","source":"The Globe and Mail","date":"2026-10-02T08:58:47+00:00","content":"Key Points\n- Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. \n- Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software. \n- Despite this recent success, both stocks still look relatively inexpensive. \nCompanies that provide infrastructure for artificial intelligence (AI) are getting a lot of attention right now because tech companies are expected to spend an estimated $1.3 trillion on AI infrastructure next year alone.\nAnd while that's certainly fueling share price gains for some companies, the main driver of demand for such hardware is the advancement of AI software and models.\nMissed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a \"Double Down\" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same \"Total Conviction\" signal is flashing for a company 1/100th the size of Nvidia. Continue »\nTwo growth stocks that are at the forefront of AI software are Microsoft(NASDAQ: MSFT) and Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL). Here's why it's worth putting $1,000 toward these stocks right now.\nMicrosoft's early AI lead is already paying off\nMicrosoft was an early investor in OpenAI and benefited from early access to ChatGPT and the ability to integrate the chatbot into many of its business software products. And although Microsoft doesn't have the same exclusivity with ChatGPT as it once did, it is a leading AI software company more than ever.\nThe latest example of this is the company's new Copilot app, which is an AI hub to help workers and consumers be more productive. Copilot can be downloaded to your desktop and includes an AI agent called Autopilot, Code for programming, Cowork for getting tasks done, and AI-powered Office apps all in one place. Microsoft calls it \"your new OS for work.\"\nThe company is betting that it can build AI services on top of its solid enterprise software foundation. Even before the new Copilot app was launched, Microsoft already had 30 million paid Copilot subscribers, a 50% increase from just a few months earlier.\nCopilot is a crucial new piece of the company's expanding AI menu, which includes its increasingly important Azure AI cloud computing business. By offering more advanced AI software to its customers, management will likely not only increase its paid Copilot subscriptions but also its AI cloud sales.\nMany of its business customers use Azure for their cloud needs because it integrates easily with their existing software. In its fiscal 2026 fourth quarter ended June 30, Azure AI cloud revenue reached an annual run rate of $100 billion. Reaching that milestone means that Microsoft AI services are resonating with customers and that they are already a success.\nAlphabet's AI models and leading software\nAlphabet is in a similar position as the company integrates more AI tools into its popular software. The company's YouTube, Chrome browser, Search tool, and Workspace apps have all been centered around the technology.\nThe one benefit Alphabet may have over Microsoft is that Google has its own frontier AI model in Gemini, allowing it to build a proprietary AI system from the ground up for its products.\nAnd there's already plenty of evidence that Gemini is paying off. Chief Executive Officer Sundar Pichai recently said that nearly 90% of Fortune 100 companies use Gemini Enterprise, a suite of software that includes AI-powered Workspace apps, Google Cloud features, and agentic capabilities.\nThe company said that millions of users, including Intel and PepsiCo, are employing Gemini Enterprise to automate their workflows and build AI agents. This usage is helping to boost Google Cloud sales, with revenue rising 82% in the second quarter to nearly $25 billion.\nAlphabet is also making money from Gemini by selling access to Apple for that company's new Siri AI. Gemini is the foundational model for Apple's new service, and Alphabet is reportedly receiving $1 billion annually as part of the deal.\nThe combination of Alphabet integrating Gemini into its own services, increasing cloud sales, and growing revenue from licensing parts of it to Apple shows just how far-reaching the company's AI software strategy is.\nBoth are great long-term AI stocks\nBoth Microsoft and Alphabet are already firmly established software companies, and both are proving that they can benefit from the new AI era, rather than be disrupted. That's not easy, and investors should view their current success in this sector as a sign that they will likely continue to play leading roles in AI for years to come.\nWhat's more, Alphabet has a trailing price-to-earnings ratio (P/E) of less than 18, and Microsoft's P/E is about 28, both of which are considerably lower than the tech sector average of 34. Which means putting $1,000 toward these AI software stocks right now is not only a smart long-term bet but also a relatively good deal.\nChris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Intel, and Microsoft. The Motley Fool has a disclosure policy.","confidence":0.9,"diagnostics_url":"/api/diagnose?url=https%3A//www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","quality_bucket":"high","failure_kind":"none","retryable":false,"quality_reason":"High confidence: full text extraction produced 5169 characters.","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 5169 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":5169,"summary_length":273,"usable_text_length":5169,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":5169,"summary_length":273}},"tags":[]},"fallback_formats":["markdown","json","html"],"actions":{"read":"/item/94585","export_markdown":"/api/items/94585/export?format=markdown","export_json":"/api/items/94585/export?format=json","diagnose":"/api/diagnose?url=https%3A//www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/"},"formats":{"full":{"id":94585,"title":"Got $1,000? 2 Growth Stocks Building the Software Backbone of Artificial Intelligence. - The Globe and Mail","url":"https://www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","source":"The Globe and Mail","author":null,"published_at":"2026-10-02T08:58:47+00:00","locale":"en","topic":"ai","tags":[],"excerpt":"Key Points\n- Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. - Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software.","full_text":"Key Points\n- Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. \n- Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software. \n- Despite this recent success, both stocks still look relatively inexpensive. \nCompanies that provide infrastructure for artificial intelligence (AI) are getting a lot of attention right now because tech companies are expected to spend an estimated $1.3 trillion on AI infrastructure next year alone.\nAnd while that's certainly fueling share price gains for some companies, the main driver of demand for such hardware is the advancement of AI software and models.\nMissed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a \"Double Down\" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same \"Total Conviction\" signal is flashing for a company 1/100th the size of Nvidia. Continue »\nTwo growth stocks that are at the forefront of AI software are Microsoft(NASDAQ: MSFT) and Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL). Here's why it's worth putting $1,000 toward these stocks right now.\nMicrosoft's early AI lead is already paying off\nMicrosoft was an early investor in OpenAI and benefited from early access to ChatGPT and the ability to integrate the chatbot into many of its business software products. And although Microsoft doesn't have the same exclusivity with ChatGPT as it once did, it is a leading AI software company more than ever.\nThe latest example of this is the company's new Copilot app, which is an AI hub to help workers and consumers be more productive. Copilot can be downloaded to your desktop and includes an AI agent called Autopilot, Code for programming, Cowork for getting tasks done, and AI-powered Office apps all in one place. Microsoft calls it \"your new OS for work.\"\nThe company is betting that it can build AI services on top of its solid enterprise software foundation. Even before the new Copilot app was launched, Microsoft already had 30 million paid Copilot subscribers, a 50% increase from just a few months earlier.\nCopilot is a crucial new piece of the company's expanding AI menu, which includes its increasingly important Azure AI cloud computing business. By offering more advanced AI software to its customers, management will likely not only increase its paid Copilot subscriptions but also its AI cloud sales.\nMany of its business customers use Azure for their cloud needs because it integrates easily with their existing software. In its fiscal 2026 fourth quarter ended June 30, Azure AI cloud revenue reached an annual run rate of $100 billion. Reaching that milestone means that Microsoft AI services are resonating with customers and that they are already a success.\nAlphabet's AI models and leading software\nAlphabet is in a similar position as the company integrates more AI tools into its popular software. The company's YouTube, Chrome browser, Search tool, and Workspace apps have all been centered around the technology.\nThe one benefit Alphabet may have over Microsoft is that Google has its own frontier AI model in Gemini, allowing it to build a proprietary AI system from the ground up for its products.\nAnd there's already plenty of evidence that Gemini is paying off. Chief Executive Officer Sundar Pichai recently said that nearly 90% of Fortune 100 companies use Gemini Enterprise, a suite of software that includes AI-powered Workspace apps, Google Cloud features, and agentic capabilities.\nThe company said that millions of users, including Intel and PepsiCo, are employing Gemini Enterprise to automate their workflows and build AI agents. This usage is helping to boost Google Cloud sales, with revenue rising 82% in the second quarter to nearly $25 billion.\nAlphabet is also making money from Gemini by selling access to Apple for that company's new Siri AI. Gemini is the foundational model for Apple's new service, and Alphabet is reportedly receiving $1 billion annually as part of the deal.\nThe combination of Alphabet integrating Gemini into its own services, increasing cloud sales, and growing revenue from licensing parts of it to Apple shows just how far-reaching the company's AI software strategy is.\nBoth are great long-term AI stocks\nBoth Microsoft and Alphabet are already firmly established software companies, and both are proving that they can benefit from the new AI era, rather than be disrupted. That's not easy, and investors should view their current success in this sector as a sign that they will likely continue to play leading roles in AI for years to come.\nWhat's more, Alphabet has a trailing price-to-earnings ratio (P/E) of less than 18, and Microsoft's P/E is about 28, both of which are considerably lower than the tech sector average of 34. Which means putting $1,000 toward these AI software stocks right now is not only a smart long-term bet but also a relatively good deal.\nChris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Intel, and Microsoft. The Motley Fool has a disclosure policy.","reading_time_min":4,"extraction":{"state":"ok","confidence":0.9,"error":null,"explanation":"High confidence: full text extraction produced 5169 characters.","diagnostics_url":"/api/diagnose?url=https%3A//www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 5169 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":5169,"summary_length":273,"usable_text_length":5169,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":5169,"summary_length":273}}},"quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 5169 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":5169,"summary_length":273,"usable_text_length":5169,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":5169,"summary_length":273}},"actions":{"read":"/item/94585","export_markdown":"/api/items/94585/export?format=markdown","export_json":"/api/items/94585/export?format=json","diagnose":"/api/diagnose?url=https%3A//www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/"}},"digest":{"id":94585,"title":"Got $1,000? 2 Growth Stocks Building the Software Backbone of Artificial Intelligence. - The Globe and Mail","url":"https://www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","source":"The Globe and Mail","topic":"ai","published_at":"2026-10-02T08:58:47+00:00","excerpt":"Key Points - Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. - Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software.","quality_bucket":"high","quality_reason":"High confidence: full text extraction produced 5169 characters.","reading_time_min":4,"cluster_id":null},"card":{"display_title":"Got $1,000? 2 Growth Stocks Building the Software Backbone of Artificial Intelligence. - The Globe and Mail","subtitle":"The Globe and Mail · 2026-10-02","summary":"Key Points - Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. - Alphabet developed Google Gemini and is now a frontier AI…","badges":["quality:high"],"links":{"read":"/item/94585","original":"https://www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","diagnose":"/api/diagnose?url=https%3A//www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/"},"quality_warning":null},"export":{"title":"Got $1,000? 2 Growth Stocks Building the Software Backbone of Artificial Intelligence. - The Globe and Mail","url":"https://www.theglobeandmail.com/investing/markets/stocks/PEP-Q/pressreleases/4923249/got-1-000-2-growth-stocks-building-the-software-backbone-of-artificial-intelligence/","summary":"Key Points\n- Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. - Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software.","source":"The Globe and Mail","date":"2026-10-02T08:58:47+00:00","content":"Key Points\n- Microsoft's Copilot has 30 million paying subscribers, and the latest version of the productivity app offers even more AI-focused capabilities. \n- Alphabet developed Google Gemini and is now a frontier AI model that's powering the company's enterprise software. \n- Despite this recent success, both stocks still look relatively inexpensive. \nCompanies that provide infrastructure for artificial intelligence (AI) are getting a lot of attention right now because tech companies are expected to spend an estimated $1.3 trillion on AI infrastructure next year alone.\nAnd while that's certainly fueling share price gains for some companies, the main driver of demand for such hardware is the advancement of AI software and models.\nMissed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a \"Double Down\" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same \"Total Conviction\" signal is flashing for a company 1/100th the size of Nvidia. Continue »\nTwo growth stocks that are at the forefront of AI software are Microsoft(NASDAQ: MSFT) and Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL). Here's why it's worth putting $1,000 toward these stocks right now.\nMicrosoft's early AI lead is already paying off\nMicrosoft was an early investor in OpenAI and benefited from early access to ChatGPT and the ability to integrate the chatbot into many of its business software products. And although Microsoft doesn't have the same exclusivity with ChatGPT as it once did, it is a leading AI software company more than ever.\nThe latest example of this is the company's new Copilot app, which is an AI hub to help workers and consumers be more productive. Copilot can be downloaded to your desktop and includes an AI agent called Autopilot, Code for programming, Cowork for getting tasks done, and AI-powered Office apps all in one place. Microsoft calls it \"your new OS for work.\"\nThe company is betting that it can build AI services on top of its solid enterprise software foundation. Even before the new Copilot app was launched, Microsoft already had 30 million paid Copilot subscribers, a 50% increase from just a few months earlier.\nCopilot is a crucial new piece of the company's expanding AI menu, which includes its increasingly important Azure AI cloud computing business. By offering more advanced AI software to its customers, management will likely not only increase its paid Copilot subscriptions but also its AI cloud sales.\nMany of its business customers use Azure for their cloud needs because it integrates easily with their existing software. In its fiscal 2026 fourth quarter ended June 30, Azure AI cloud revenue reached an annual run rate of $100 billion. Reaching that milestone means that Microsoft AI services are resonating with customers and that they are already a success.\nAlphabet's AI models and leading software\nAlphabet is in a similar position as the company integrates more AI tools into its popular software. The company's YouTube, Chrome browser, Search tool, and Workspace apps have all been centered around the technology.\nThe one benefit Alphabet may have over Microsoft is that Google has its own frontier AI model in Gemini, allowing it to build a proprietary AI system from the ground up for its products.\nAnd there's already plenty of evidence that Gemini is paying off. Chief Executive Officer Sundar Pichai recently said that nearly 90% of Fortune 100 companies use Gemini Enterprise, a suite of software that includes AI-powered Workspace apps, Google Cloud features, and agentic capabilities.\nThe company said that millions of users, including Intel and PepsiCo, are employing Gemini Enterprise to automate their workflows and build AI agents. This usage is helping to boost Google Cloud sales, with revenue rising 82% in the second quarter to nearly $25 billion.\nAlphabet is also making money from Gemini by selling access to Apple for that company's new Siri AI. Gemini is the foundational model for Apple's new service, and Alphabet is reportedly receiving $1 billion annually as part of the deal.\nThe combination of Alphabet integrating Gemini into its own services, increasing cloud sales, and growing revenue from licensing parts of it to Apple shows just how far-reaching the company's AI software strategy is.\nBoth are great long-term AI stocks\nBoth Microsoft and Alphabet are already firmly established software companies, and both are proving that they can benefit from the new AI era, rather than be disrupted. That's not easy, and investors should view their current success in this sector as a sign that they will likely continue to play leading roles in AI for years to come.\nWhat's more, Alphabet has a trailing price-to-earnings ratio (P/E) of less than 18, and Microsoft's P/E is about 28, both of which are considerably lower than the tech sector average of 34. Which means putting $1,000 toward these AI software stocks right now is not only a smart long-term bet but also a relatively good deal.\nChris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Intel, and Microsoft. 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