5 Most Promising AI Stocks According to Hedge Funds

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 221

Alphabet Inc. (NASDAQ:GOOGL) is a holding company and it is focused on innovation through AI, as evident in its AI-focused products and solutions like its chatbot Bard and more. The company’s Class-A shares are represented by the ticker symbol GOOGL.

On December 13, Alphabet Inc. (NASDAQ:GOOGL) launched its Gemini Pro large language model. While the large language model is free for clients as of now, the company mentioned that it plans on it being “competitively priced” later.

On December 13, Alphabet Inc. (NASDAQ:GOOGL)’s Google launched MusicFX as part of its AI Test Kitchen. The AI tool can be used by customers to create music and it utilizes Google’s MusicLM and DeepMind’s watermarking technology and SynthID.

Alphabet Inc. (NASDAQ:GOOGL) was mentioned in White Brook Capital Partners’ third quarter 2023 investor letter. Here is what it said:

“The magnificent seven, that underpin the S&P 500 performance, which includes Alphabet Inc. (NASDAQ:GOOG), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”