10 AI Stocks Trending on News and Analyst Ratings

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 202

Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. Wall Street was disappointed after Alphabet posted its Q4 results, particularly because of the hefty AI spend it forecast. Management projected a $75 billion in FY25 capex to expand capacity for AI demand. Expenses are also expected to rise in 2025, driven by higher depreciation from elevated capex and increased investments in AI and Cloud talent. Nevertheless, Goldman Sachs’ Eric Sheridan has highlighted “continued revenue momentum” for the stock based on robust performance in Search across all verticals, decent YouTube Ads results, and positive early engagement with AI Overviews. Moreover, despite significant AI-related investments, operating margins also beat expectations. Generative AI and a “more normalized overall enterprise computing landscape have also positively placed Alphabet’s cloud business. Due to these factors, the firm rated Alphabet stock as a “Buy” with a $220 price target, as reported by TipRanks on February 10^th.

“Away from any short-term debates, we continue to view Alphabet as well-positioned against both the current (mixture of desktop and mobile utility) and potential future (AI/ML; personalization; lowered friction to applications) computing landscapes. We continue to advocate that the combination of AI distribution at scale (collection 1b+ user applications) and scale of compute to both invest and drive efficiencies remain as a dual under-appreciated narrative in terms of AI over the long-term, particularly as we move from the ‘infrastructure’ to ‘platform’ and ‘application’ layers of AI monetization.”

– Goldman Sachs’ Eric Sheridan