11 Best Innovative Stocks to Buy According to Analysts

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4. Alphabet Inc. (NASDAQ:GOOGL)

Average analysts’ upside: 41.78%

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) is a multinational conglomerate that manages a wide range of companies, including the Google search engine. Online advertising, search engine optimization, cloud computing, software development, consumer electronics, and AI are some of its primary activities. The company runs YouTube, Google Cloud Platform, Android OS, and hardware such as Pixel smartphones. The company’s large investments in AI research and development, which have produced innovations like the Gemini AI model and AI-generated code contributions to its software projects, demonstrate its dedication to innovation.

Alphabet Inc. (NASDAQ:GOOGL) is strongly positioned to drive significant success at scale in AI over a long period, with an impressive stack including a robust infrastructure of data centers, TPUs, GPUs, and incredible research teams. The company’s core platforms are showing strong momentum, with Cloud and YouTube combined generating over $110 billion in annual revenue. The company is seeing increased engagement with AI-powered features, particularly in Search, where AI Overviews are being monetized at the same rate as non-AI Overview searches.

Alphabet Inc. (NASDAQ:GOOGL) is also making significant investments in infrastructure, with approximately $75 billion in CapEx planned for 2025, primarily focused on data centers and servers to support AI initiatives and cloud growth. In terms of operational efficiency, the company continues to focus on cost optimization and productivity improvements while maintaining strategic investments in key growth areas like AI and cloud. The cloud business, despite capacity constraints, demonstrated strong growth at 30% in Q4, with demand exceeding supply and showing growth both within the existing customer base and through new customer additions. GOOGL is on one of the strongest Capex sprees in the world, which cements its place on our list of best innovative stocks to consider.

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