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One of the misconceptions about artificial intelligence is that it would hurt tech companies across the board. For instance, Alphabet (GOOG) (GOOGL) stock dropped significantly in early 2025 on fears that AI chatbots would eat into Google's dominant internet search business.
But those fears didn’t come to pass because Alphabet incorporated AI into its search results, turning a potential liability into an advantage. GOOGL stock responded well and is up 141% in the last year.