10 Cheap Blue Chip Stocks to Buy According to Hedge Funds

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1. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Forward P/E as of April 18: ~17.04x

BofA Securities maintained a “Buy” rating on Alphabet Inc. (NASDAQ:GOOGL)’s stock. The analysts are positive about Google’s recent AI Overviews and its core valuation. They opine that new features are expected to result in increased monetization and more advertising clicks from informational queries. Alphabet Inc. (NASDAQ:GOOGL)’s core search business has been demonstrating resilience and growth. Despite the worries related to the AI disruption, the company’s traditional search business is robust. The company’s AI initiatives go beyond its cloud services. The integration of AI throughout the company’s product suite exhibits its commitment to maintaining a competitive edge in AI technology.

Alphabet Inc. (NASDAQ:GOOGL)’s future growth remains tied to the AI initiatives and the AI integration. Its AI infrastructure investments and research place it well to reap the benefits of elevated demand for AI-powered services and cloud computing. AI advancements can fuel Alphabet Inc. (NASDAQ:GOOGL)’s search algorithms, which can help maintain dominance in the search market and potentially increase ad revenue with the help of more precise targeting and improved user experience. Also, GCP’s emphasis on AI and ML capabilities can bring enterprises that are planning to implement advanced AI solutions, potentially fueling market share gains in the broader cloud sector. As Alphabet Inc. (NASDAQ:GOOGL) has been advancing its AI technologies, GCP can benefit from its early access to cutting-edge AI capabilities.

While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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