Google shares surged this week as investor attention was drawn to the company’s growing dominance in artificial intelligence. Investor Gene Munster, managing partner at Deepwater Asset Management, believes Google is the best pick among the Magnificent Seven stocks for the next year.

Munster highlights Google’s recent progress in AI, particularly the potential use of Google’s Tensor Processing Units in Meta Platforms’ data centers by 2027, as a key growth factor. He views the rise in Google’s stock and the decline in Nvidia’s shares as a sign that Google holds strong positions both in the short and long term.

Despite earlier concerns about Google’s ability to compete in the generative AI space, Munster believes those fears have been dispelled by the company’s recent achievements. He sees the chatbot market as a significant opportunity for Google, as only 20% of users actively use the Gemini AI tool.

Google’s strength has always been its ability to scale — with 2.5 billion people using Google Search daily, compared to around 500 million for ChatGPT. Munster sees this as a huge advantage for Google, even as ChatGPT disrupts the digital search ecosystem.