5 Stocks with AI Catalysts in 2023

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 204

Morgan Stanley in August said that upcoming catalysts for Google in the AI domain include Alphabet Inc. (NASDAQ:GOOGL)’s Gemini LLM release and the availability of generative search experience. Morgan Stanley had also called Google Next event that was scheduled to take place on August 29 as a catalyst event. The event did turn out to be pretty impressive as Alphabet Inc. (NASDAQ:GOOGL) revealed several products, including several feature software features for Cloud and AI.

Alphabet Inc. (NASDAQ:GOOGL) is one of the most popular stock among the 910 hedge funds tracked by Insider Monkey. 204 hedge funds in our database have stakes in Alphabet Inc. (NASDAQ:GOOGL). The biggest stakeholder of Alphabet Inc. (NASDAQ:GOOGL) include Natixis Global Asset Management’s Harris Associates which owns a $3.2 billion stake in the company.

Artisan Global Value Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q2 2023 investor letter:

“Our best performing stocks this quarter were Meta, Alphabet Inc. (NASDAQ:GOOG) and Heidelberg Materials. The rise in Alphabet’s share performance was primarily driven by the AI frenzy. Earlier this year, there were some doubts about Alphabet’s ability to compete with OpenAI’s ChatGPT product. This was a bit ironic since Alphabet has been using AI technology to improve its Google search results and advertising business for years. Indeed, the technology that underpins OpenAI’s ChatGPT actually came from Alphabet more than five years ago. But sometimes the market needs a reminder, and Alphabet provided tangible evidence of its capabilities. At a recent developer conference, it launched Bard, a consumer-oriented generative AI version of its search engine, as well as several other concrete examples of how AI could improve its current business. As with Meta, the long-term implications of AI on Alphabet’s business model are still far from certain. But we do believe that it is a technology leader in this field and will participate in whatever direction the technology develops.”