We recently compiled a list of the 15 AI News Investors Should Not Miss. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOG) stands against the other AI stocks investors should not miss.
On October 31, CNBC’s Steve Kovach joined ‘Money Movers’ to discuss big tech’s AI spending. Kovach observes that, apart from ChatGPT, no other AI product has achieved a breakthrough, despite ongoing efforts from many companies. Currently, most of the money is going to chip makers and cloud businesses, and there is no evidence of meaningful sales or engagement around AI products that people may want to use every day. Kovach’s observation implies that tech giants continue to invest heavily in foundational AI advancements and that high-engagement consumer products may still have time to launch. Additionally, many of these big tech companies have reported that they will continue to step up their already high spending on AI infrastructure.
READ ALSO: 15 AI News You Should Not Miss and Top 10 Trending AI Stocks in Q4.
For many like Kovach, OpenAI represents the leading and most mainstream AI breakthrough, with each of its moves highly anticipated. After all, the company is widely credited for bringing artificial intelligence tools into widespread use. In its latest breakthrough, OpenAI has launched “ChatGPT Search”, the company’s new search engine, positioning the high-powered AI startup to compete with search engines like Bing, Perplexity, and Google. This search feature within ChatGPT provides up-to-the-minute sports scores, stock quotes, weather, and more, driven by real-time web searches and partnerships with news and data providers.
“I find it to be a way faster/easier way to get the information I’m looking for. I think we’ll see this especially for queries that require more complex research. I also look forward to a future where a search query can dynamically render a custom web page in response!”
– Sam Altman said in a Reddit AMA on Thursday.
In a notable advancement towards more accessible AI products and services, SpotAI, a leader in AI camera systems, announced the launch of its Video AI Agents. The announcement strives to bring agentic AI capabilities from the digital to the physical world. These agents assist organizations in identifying and resolving incidents, offering measurable ROI in sectors such as manufacturing, education, retail, and automotive services; all without the need for human intervention.
In a similar development within the AI landscape, OSARO, a global leader in machine-learning-enabled robotics for high-volume fulfillment centers, has launched OSARO AutoModel. The OSARO AutoModel allows robots to automatically learn and adapt to new items, processes, and workflows with zero downtime; unlike previous robots that need updating for new SKUs.
Continuing the trend of leveraging artificial intelligence in our increasingly AI-driven world, Bolster, a leader in multi-channel phishing protection, announced on Thursday its newest feature called Bolster AI Security for Email. The Bolster AI Security for Email automates the analysis and mitigation of cyber threats reported through customer abuse mailboxes. The new feature combines crowdsourced customer reports and AI-driven automation to protect brands from fraud schemes in real-time.
Our Methodology
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A laptop and phone open to Google’s services in an everyday setting.
Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 165
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate and the parent holding company of Google. The company is a strong player in the AI sector, innovating at “every layer of the AI stack, from chips to agents and beyond”.
Alphabet Inc. (NASDAQ:GOOG) announced its third-quarter results on October 29, 2024. The company beat analysts’ estimates on the top and bottom lines, driven by strong growth in its cloud business. In particular, Google CEO Sundar Pichai emphasized the growth of the cloud unit, noting that the company’s AI portfolio is enticing new customers and leading to larger deals. Cloud revenue for the quarter was $11.4 billion, up 35% from the same period last year, surpassing expectations. The excitement and potential around artificial intelligence means Google is all in on the AI craze, and it’s certainly helping its productivity, too. In the earnings call, Pichai noted how more than a quarter of new code created at Google is generated by AI. Using AI for coding has been boosting productivity and efficiency for the company.
“More than a quarter of all new code at Google is generated by AI, then reviewed and accepted by engineers”.
-CEO Sundar Pichai said on the company’s third quarter 2024 earnings call.
Overall GOOG ranks 4th on our list of the AI stocks investors should not miss. While we acknowledge the potential of GOOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
