10 Best Long Term Tech Stocks to Buy Right Now

4) Alphabet Inc. (NASDAQ:GOOGL)

10-Year Revenue Growth: ~18.1%

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL)’s leadership in AI technology has been a critical driver of its success. It has made numerous strides in integrating AI throughout its product portfolio, with positive user satisfaction and monetization rates comparable to the traditional search. The company’s extensive integration of AI throughout its product ecosystem places it well for sustained growth and innovation. The incorporation of Gemini AI into its core products highlights Alphabet Inc. (NASDAQ:GOOGL)’s commitment to enhancing user experiences via AI.

In search, AI advancements have resulted in the improvement in the company’s ability to understand and respond to difficult queries, which can help Alphabet Inc. (NASDAQ:GOOGL) maintain leadership in the broader search market. Furthermore, Google Cloud’s emphasis on AI infrastructure and solutions continues to attract enterprise customers and fuel revenue growth in the cloud segment. Overall, Alphabet Inc. (NASDAQ:GOOGL) remains well-placed to benefit from the broad-based growth in the technology industry as growth in cloud computing, AI, and digital advertising fuels higher demand for its services.

Qualivian Investment Partners, an investment partnership focused on long-only public equities, published its Q3 2024 investor letter. Here is what the fund said about Alphabet Inc. (NASDAQ:GOOGL):

“Alphabet Inc. (NASDAQ:GOOGL): Q2 2024 revenues and EPS beat expectations, with total revenues growing 14%, Search ad revenues growing 14%, YouTube ads growing 13%, and Google Cloud revenues growing 29%. Revenue growth in the quarter constituted a continued sequential improvement from earlier quarters in the year, suggesting a continued rebound in Alphabet’s core business except for YouTube ad revenues, which missed expectations and showed deceleration in the growth rate as compared to Q1 when it grew 21%. Operating margins improved by 310 bps vs. the same quarter last year.

Management continued to highlight developments with their generative AI program, which is seen as a foundational platform with opportunities across their businesses but particularly in search and cloud. However, this comes with material capex investment well ahead of the expected economic benefits from Gen AI, and the level of spending is leading investors to worry about the ROI on that spend for Alphabet, as well as the other hyperscalers (Microsoft and Amazon). We continue to have confidence in Alphabet’s ability to generate strong revenue, earnings, and cash flow growth well above the S&P 500’s in the years to come and view it as a core holding for the long term.”