5 Best Robotics Stocks To Buy According To Hedge Funds

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 191

Alphabet Inc. (NASDAQ:GOOGL) is the parent company for Google, which is best known for its namesake search engine and a host of other products such as Gmail, YouTube, and Google Cloud. Google is also developing its own robot that aims to conduct a variety of human tasks.

Alphabet Inc. (NASDAQ:GOOGL)’s robot is named PaLM-SayCan and it is one of the first in the world to integrate natural language processing into its functions. This allows the robot to recognize verbal commands to perform a variety of daily tasks such as picking up objects and carrying out instructions. It can also search for objects and differentiate between them. The robot is based on Alphabet Inc. (NASDAQ:GOOGL)’s natural language algorithm that the company has trained extensively.

191 out of the 895 hedge funds profiled by Insider Monkey for this year’s June quarter had invested in Alphabet Inc. (NASDAQ:GOOGL).

Out of these, Chris Hohn’s TCI Fund Management is Alphabet Inc. (NASDAQ:GOOGL)’s largest investor through owning 2.4 million shares that are worth $5.4 billion.

Arch Capital mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“In May we decided to buy Alphabet Inc. (NASDAQ:GOOG) (parent company of Google, YouTube, and Android). Our thesis was simple. Alphabet has billions of locked-in users around the globe with businesses like Search, Maps, and YouTube that should grow in-line or faster than worldwide GDP. With all the cash these businesses generate, management is able to reinvest in Google Cloud, Other Bets projects like Waymo, and return cash to shareholders via share repurchases. At an enterprise value-to-free cash flow (EV/FCF) of around 20 at the time of our purchase, we believe this sets up shareholders for low risk 15%+ returns over the next five years.”