By Geoffrey Seiler
Publication Date: 2026-04-03 09:05:00
While the “Great Rotation” is starting to see a shift away from fast-growing artificial intelligence (AI) stocks, let’s not write off megacap growth stocks just yet. One of the biggest drivers of long-term returns is still innovation.
In megacap tech, the companies best positioned to lead the next decade aren’t just the ones seeing solid revenue growth today; they’re the ones building tomorrow’s platforms. And by that measure, the gap between Alphabet (GOOGL 0.57%) (GOOG 0.20%) and Microsoft (MSFT +1.01%) may be wider than it first appears.
Both companies’ platforms are deeply entrenched in our everyday lives, they are both highly profitable, and both are aggressively investing in AI. However, one company is clearly much better positioned for the future.
Image source: The Motley Fool.
Alphabet: The market innovator
When it comes to innovation, few companies can match Alphabet. The company is best known for its Google search engine, but it is much more than that.
The company is…
