17 Trending AI Stocks According to Latest News And Analyst Ratings

5. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 165

Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. The company has been investing heavily in AI tech over the past few years. Recent reports indicate that Google Cloud, one of the products marketed by the firm, is allowing startups in the AI domain access to high-tech NVIDIA GPUs and customized Google chips in order to build their AI models. This opening up of the cloud to AI startups is only limited to startups funded by Y Combinator, a venture capital firm based in California near Google headquarters, presently. However, the tech giant may allow a wider group of AI firms access to the cloud in the coming months.

Even as AI-powered search engines disrupt the core business of Alphabet Inc. (NASDAQ:GOOG), analysts like Scott Devitt of Wedbush, who has an Outperform rating on the shares with a price target of $205, believe the internet giant has a highly defensible search moat. Per the analyst, the search advancements of the firm are underappreciated by the market. Devitt notes that the firm has several advantages over peers, including an unmatched breadth of data to develop and train AI models, a large user base, AI-optimized compute infrastructure, access to engineering talent, and a track record of monetization.