10 Mega Cap Stocks Gaining Bullish Momentum This Week

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1. Alphabet Inc. (NASDAQ:GOOG)

Alphabet Inc. provides different platforms and products in the US, Canada, the Asia-Pacific, Latin America, and Africa. The company operates in Google Cloud, Google Services, and Other Bets segments.

Google is down 9.79% this year so far compared to the S&P’s decline of 1.58%. This underperformance is causing concern, especially when one sees Google lose market share to emerging AI-powered search engines like ChatGPT and Perplexity. A consequence of losing this market share is that the company may also lose out on advertising revenue to competitors like Meta Platforms. But there are reasons to be optimistic.

The company has successfully used AI-powered recommendations to increase viewing time on YouTube. AI Overviews, a search engine feature that gives users a direct answer to their query using generative AI, has significantly improved search quality. This is an example of how Google is a company that can not only fit AI products into its existing offerings but also distribute them to users without any additional burden.

This is why Google has had amazing shareholder returns in the last two decades, something that is unlikely to stop as it reduces its reliance on search engine revenue, a portion of its business supposedly under threat from competitors.

Alphabet is 4th on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 234 hedge fund portfolios held GOOG at the end of the fourth quarter, which was 202 in the previous quarter. While we acknowledge the potential of GOOG as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as GOOG but that trades at less than 5 times its earnings, check out our report about the 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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