10 High-Potential AI Stocks to Watch Right Now

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On March 5th, BofA maintained a “Buy” rating and $225 price target on shares of Google parent Alphabet Inc. (NASDAQ:GOOGL). The firm discussed Google’s recent blog post that has revealed that it now processes more than 5 trillion searches annually, as compared to 2 trillion in 2016.

This implies that Google’s query volume has grown at a 12% compound annual growth rate over 2016-2024, 7 points below the 19% CAGR for search revenues. The analyst noted how this suggests strong usage growth may have contributed more to revenues than improved search monetization, adding that the company “had impressive 8-year volume growth and monetization could be adding 6-7pts of growth annually.”  The analyst concluded by stating that these disclosures can help build confidence in the company’s ability to capitalize on AI for future growth.