13 Best NASDAQ Stocks to Buy So Far in 2025

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4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) is a tech company that operates through three segments. The Google Services segment provides products and services like ads, Chrome, Gmail, and YouTube. The Google Cloud segment offers AI infrastructure, Vertex AI platform, cybersecurity, and data & analytics, among others. The Other Bets segment sells healthcare-related and internet services.

On March 31, Ken Gawrelski, an analyst at Wells Fargo, reaffirmed an Equal Weight rating on the company while lowering the price target to $167 from $184. This cautious sentiment is a result of the company’s current trough multiples and bearish investor sentiment. This is because they believe that Google’s search business is put at risk by new AI-related technologies.

However, the increasing demand for AI infrastructure and GenAI solutions has improved the adoption of GCP (Google Cloud Platform). GCP recently outpaced the entire cloud market. The company’s overall Cloud segment rose by 30$ year-over-year in Q4 2024. Notably, the company’s 6th-gen TPU called Trillium enhances AI workload significantly. Alphabet Inc.’s (NASDAQ:GOOGL) AI-developed platform called Vertex AI increased its customers by fivefold in Q4.

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.”

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