Which of the "Magnificent Seven" stocks has the most generative artificial intelligence (AI) patents? You might think it's a company like Microsoft, which has developed extensive generative AI capabilities for its popular products, or Nvidia, which develops the chips that make AI technology possible.

However, you might be surprised to learn that the Magnificent Seven company with the most generative AI patents is Google parent company Alphabet (GOOGL 1.12%) (GOOG 1.21%). Based on The Motley Fool's latest research, Alphabet has 631 different generative AI patents -- second most among U.S. companies and a far greater number than any of its big-tech counterparts.

This is only one metric where the company is winning the AI intellectual property race, but it gives Alphabet a competitive advantage that investors might be overlooking. Plus, Alphabet looks like a highly attractive place to put money to work for patient, long-term investors right now for a few reasons.

Alphabet's generative AI patent portfolio

With any new and rapidly evolving technology comes a surge in patents protecting the intellectual property of companies that are engaged in its development. There are tens of thousands of generative AI patents in existence. While a few Chinese companies have the most by number, U.S. businesses generally have the more valuable patents, as indicated by how much more often they're cited in academic research.

When it comes to U.S. companies, the No. 1 patent holder is IBM, which was an early AI pioneer with its Watson technology years ago. But Alphabet is in a close second position and has more than 630 patents, the majority of which are related to software AI applications (like the Google Gemini tools).

As mentioned, patents alone are just one piece of the puzzle. But Alphabet's combination of high-quality generative AI patents and extremely deep pockets to invest in innovation give it a major competitive advantage. Alphabet has about $73 billion in net cash on its balance sheet, in addition to the more than $100 billion in annualized operating income the business produces.

A lot to like about this tech behemoth

Beyond its patent portfolio, there's a lot to like about Alphabet right now. In the most recent quarter, the company's revenue grew by 12% year over year and its earnings per share (EPS) grew more than 30%. Throughout the business, growth was impressive and expense controls were highly effective.

Google Cloud is an especially strong point, with 30% year-over-year revenue growth and a massive opportunity ahead of it. The global cloud services market is expected to roughly quadruple in size by 2032, so this should be a long-tailed, high-margin growth opportunity for the company.

A winner at the right price

Alphabet is a rare combination of a dominant market-leading business and one that has lots of growth potential, both of which are extremely profitable. Its vast collection of intellectual property, especially when it comes to generative AI, could give it some major advantages over its peers in the coming years.

There still are some concerns, though, such as how Google's advertising revenue would hold up in a recession and the continuing threat of the Justice Department calling for the breakup of the company. However, with double-digit revenue growth and a valuation of just 18 times forward earnings -- the lowest of any of the Magnificent Seven, by far -- now could be a great time to take a closer look.