5 Stocks That Will Benefit From AI

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 155

Alphabet Inc. (NASDAQ:GOOG) is a big tech company based in Mountain View, California. It is among the tech companies leading the AI race, having released its own chatbot, Bard, and leading a dedicated AI division for research in the area.

We saw 155 hedge funds long Alphabet Inc. (NASDAQ:GOOG) in the first quarter. Their total stake value was $18.6 billion.

John Blackledge at TD Cowen holds an Outperform rating and a $140 price target on Alphabet Inc. (NASDAQ:GOOG) shares as of July 13.

Ensemble Capital Management said the following about Alphabet Inc. (NASDAQ:GOOG) in its second-quarter 2023 investor letter:

Alphabet Inc. (NASDAQ:GOOG) (+15.4%): After persistent worries earlier in the year about the impact of AI, Google rode a tailwind of AI enthusiasm in the quarter as indications emerged that Google Search had not lost any market share despite a revamped Bing search engine powered by ChatGPT.

Anyone who has been paying attention to the news this year has heard about ChatGPT and the seemingly overnight explosion of interest in artificial intelligence. But like many seemingly overnight successes, AI has been decades in the making.

For instance, the so called Turing Test, long thought of as the test of a machine’s ability to exhibit human level intelligence, was introduced nearly 75 years ago in 1950. It has been 25 years, a quarter of a century, since IBM’s Deep Blue computer beat the human world chess champion Garry Kasparov. And it has been over seven years since Sundar Pichai became the CEO of Google and announced in his first speech that Google was now an A.I.-first company…” (Click here to read the full text)

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