What is AI-native search and how is it different from traditional search?

AI-native search uses artificial intelligence to understand and respond to queries more like a human would, often providing direct answers rather than just links to websites. Unlike traditional search engines that match keywords to webpages, AI search can understand context, synthesize information from multiple sources, and present personalized results. This shift represents a fundamental change in how people find information online and could reshape digital advertising markets worth billions of dollars.

Why is Alphabet's (Google's) earnings report significant for this theme?

Alphabet's earnings reports provide crucial insights into how the dominant search leader is navigating the AI transition. As Google's parent company, Alphabet faces a balancing act: AI is driving growth in some areas while potentially threatening its core search advertising business. The company's financial performance and strategic responses offer important signals about the pace and direction of change in the search market, making it a bellwether for the entire sector.

What are specialized search platforms and why are they included?

Specialized search platforms focus on specific types of information or contexts like e-commerce, voice assistants, or enterprise data. These companies are included because they often have advantages in their niche areas that allow them to compete effectively even against larger, more general search providers. As AI transforms search, these specialized platforms may capture significant market share in valuable segments where their focused expertise provides better results than general-purpose search engines.

How does this theme balance risk between established companies and newcomers?

This collection creates balance by including both defensive and offensive investment opportunities. The established tech giants (like Google, Microsoft, and Apple) represent more stable investments as they adapt to the changing landscape with significant resources. Meanwhile, the emerging innovators and specialized providers offer higher growth potential but with increased risk. This approach gives investors exposure to the entire ecosystem across different risk profiles.

What is the significance of companies that provide infrastructure for AI search?

Infrastructure providers supply the essential foundation for AI search, including computing hardware, data processing capabilities, and advertising technologies. Companies like NVIDIA provide the powerful chips needed to run complex AI models, while advertising technology firms help monetize new search platforms. These companies benefit regardless of which specific search providers ultimately win market share, making them potentially valuable investments during this technological transition.

16 handpicked stocks

Redefining Search: The AI Revolution

This carefully selected group of stocks represents companies at the forefront of AI's impact on search technology. Handpicked by our professional analysts, these investments offer exposure to both established tech giants defending their territory and innovative newcomers disrupting traditional search models.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 21