14 Best Holding Company Stocks to Buy Right Now

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1. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) is one of the largest technology companies in the world with a suite of products and services for personal, commercial, and business use. Some of its products include Google Search, Google Maps, Gmail, Google Play, and YouTube to name a few. In the fourth quarter of 2024, the company grew its revenue by 12% to $96.5 billion. Its Google Services segment made up for most of the revenue, generating $84.1 billion during the quarter, up by 10%. The company attributed its growth to AI and growing momentum across other crucial aspects of the business.

In January, Alphabet Inc. (NASDAQ:GOOGL) introduced several AI advancements, enhancing its position in the space. The company made AI more accessible to a wider audience. In addition to that, the company also released Gemini 2.0 Flash, which is much faster and more capable than its predecessors. GOOGL also expanded Gemini’s capabilities to images, files, and YouTube videos, giving users greater opportunities and benefits. In an impressive feat, Alphabet Inc. (NASDAQ:GOOGL) revealed new tools and initiatives to improve the role of AI in education, automotive, and retail. Overall, the company expects to invest nearly $75 billion in capital expenditures in 2025, accelerating its advancements and progress in artificial intelligence.

While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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