10 Best Growth Stocks To Buy According To George Soros

2. Alphabet Inc. (NASDAQ:GOOGL)

Soros Fund Management Stake Value: $166.02 Million

Number of Hedge Fund Holders: 216

Alphabet Inc. (NASDAQ:GOOGL) is one of the best growth stocks to buy according to Soros. The company owns a range of products, including Google Search, Google Maps, YouTube, Google Cloud, and Wyamo. The technology giant is well-positioned to exploit the next wave of artificial intelligence and innovation, making it a solid investment.

Google DeepMind, the company’s research lab is relentlessly working to improve the Gemini experience and is also actively involved in developing AI hardware, and launched its NVIDIA chip rival in May. Moreover, the latest version of Gemini has accelerated performance across text, audio, video, and code.

While Google’s tensor processing units (TPU) only account for almost 20% of the market, its advancements promise higher market shares. Moreover, its six-generation chips are 67% more energy efficient compared to the previous generation of processors. The new chip will be made available to Google Cloud users by the end of 2024.

Overall, the company’s new AI models and algorithms are 100 times more efficient compared to 18 months ago. Additionally, over 60% of generative AI startups and 90% of generative AI unicorns are customers of the Google Cloud. Alphabet Inc. (NASDAQ:GOOGL) expects to log $100 billion in revenue run rate from YouTube Ads and Google Cloud by the end of 2024. In addition to that, in the second quarter, cloud revenue increased by 28.8% and overall revenue increased by 13.59%.

Analysts are bullish on GOOGL and their 12-month median price target of $205 points to a 26% upside from current levels. Overall, 216 investors held stakes worth $35.31 billion in Alphabet Inc. (NASDAQ:GOOGL). Of those, Fisher Asset Management was the highest stakeholder with a position of $8.86 billion.

Patient Capital Management mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter“

“Alphabet Inc. (GOOGL) was a top contributor in the second quarter, finally catching up to its peers in the Magnificent 7. The company gained 20.8% in the period following strong first quarter earnings, a new $70B repurchase program (3% of shares outstanding) and the initiation of a cash dividend ($0.20 per share; 0.42% yield). We continue to believe the market underappreciates Google’s exposure to AI with its Gemini model being integrated into search results, YouTube advertising and its cloud offering. We continue to think that the cloud players will be the AI winners in the long-term, with Google being well positioned to take advantage. While the company trades at 24x 2024 earnings, if you remove the money-losing and under-earning businesses, you realize that you are paying below a market multiple for the core Google business. We do not believe there are many other AI winners trading at such an attractive multiple.”