10 Unrivaled Stocks of the Next 5 Years

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 202

Alphabet Inc. (NASDAQ:GOOGL) is an American technology conglomerate and holding company that owns Google, YouTube, and other businesses. The company has a leading market position in online search and it continues to invest in areas like cloud computing and AI. GOOGL ranks among the top unrivaled stocks.

On February 5, Guggenheim analyst Michael Morris raised the price target on Alphabet Inc. (NASDAQ:GOOGL) to $220 from $215 and maintained a “Buy” rating following the company’s fourth-quarter earnings report. The analyst noted that while Alphabet Inc.’s (NASDAQ:GOOGL) search and YouTube segments performed better than expected, others did not meet expectations. The report pointed out that although this might affect the market sentiment, the expectation is that the company’s investments in AI infrastructure will lead to significant growth over time.

Interestingly, Alphabet Inc. (NASDAQ:GOOGL) plans to invest about $75 billion in capital expenditures in 2025, up from the consensus of $48 billion and Guggenheim’s estimate of $63 billion. As the AI race intensifies, Guggenheim expects investors to eventually favor companies that demonstrate clear returns on their AI investments. The firm’s analyst is confident that Alphabet Inc.’s (NASDAQ:GOOGL) near-term AI investments will yield attractive growth in the long run.