12 Best Tech Stocks to Buy For Long-Term Investment

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services like Chrome, Gmail, and YouTube. The Google Cloud segment offers AI infrastructure, Vertex AI platform, cybersecurity, data and analytics, and other services. The Other Bets segment sells healthcare-related and internet services.

The adoption of Google Cloud Platform (GCP) products, together with the increasing demand for AI infrastructure and GenAI solutions, drove the company’s Cloud segment to improve its revenue by 30% year-over-year in Q4 2024. GCP was recently able to outpace the entire cloud market.  The company’s 6th-gen TPU called Trillium improves performance in AI workloads significantly. Vertex AI, which is the company’s AI developer platform, increased its customers by 5x year-over-year. The AI Hypercomputer is also contributing through leading performance and cost efficiency for both GPUs and TPUs.

On March 19, Roth MKM reiterated a Buy rating on the company with a $220 price target. This sentiment was a result of the company’s recent $32 billion Wiz acquisition, which is the largest one in Alphabet Inc.’s (NASDAQ:GOOGL) history. Through this acquisition, the company will be able to offer enhanced cloud security and threat detection data across cloud environments.

Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”