10 Best American Stocks To Buy and Hold in 2025

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 202

Alphabet Inc. (NASDAQ:GOOGL) is an American technology company known for its search engine Google. Its search engine has become so popular that it is recognized as a verb now. However, what some investors might not know is the company’s position in the AI industry. Its language model, Gemini, is seen as one of the top options in the space. The company has also incorporated AI into Google search, which provides an overview of the search results. In addition, Gemini 2.0 has also been launched now, which allows users to run more complex tasks using AI.

Analysts appreciate its efforts in the field of AI and also its stronghold within the core business of advertising and search engines. On January 24, analysts at Scotiabank raised their price target on Alphabet Inc. (NASDAQ:GOOGL) to $240 from the previous target of $210. Analysts kept their Overweight rating on the stock, expecting continuous demand for its products and services in 2025. During the fiscal third quarter of 2024, the company grew its revenue by 15% year-over-year and delivered a net income of $26.3 billion, demonstrating a robust financial position. It is one of the best American stocks to buy and hold in 2025.

Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”