12 AI Stocks on Wall Street’s Radar

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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 April 16, Needham analyst Laura Martin maintained a “Buy” rating on the stock and reduced the price target to $178.00. The firm’s buy rating stems from Alphabet’s strategic positioning in the digital landscape, particularly its “Zero Click” strategy that is anticipated to be a major disruptor due to its integration with generative AI.

User behavior and content creation are both likely to be impacted by this strategy, resulting in new business models and frameworks. Alphabet also holds the potential to expand its margins through generative AI, albeit with some challenges. All in all, the buy rating is justified amid near-term valuation risks and potential upside drivers stemming from Generative AI.

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