We recently compiled a list of the 12 High Flying AI Stocks This Week. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against the other high flying AI stocks.
In the artificial intelligence world, the spotlight will be shifting to France next week as the world awaits the US and China to find common ground over the safe development of artificial intelligence. Judging by the measured response from China over the tariffs issue, there is a chance it might. That noted, a wide variety of countries are going to be attending an AI Action Summit in Paris next week to discuss how to put the technology to work. France is going to be hosting the summit alongside India on Feb 10 and 11, focusing on areas such as open-source systems and clean energy for powering data centers, Reuters reported.
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Meanwhile, the emergence of DeepSeek is increasingly turning into a game-changing event for AI development in China. The founder, Liang Wenfeng, is being hailed as a national hero. Indeed, his efforts have greatly helped the country to catch up with the US in the race toward AI supremacy. Chinese companies are increasingly rushing to support AI models coming from DeepSeek. Moore Threads and Hygon Information Technology, for instance, said on Monday that their computing clusters and accelerators will be able to support Deep Seek’s R1 and V3 models. Moore Threads, in particular, stated that progress by DeepSeek’s models using domestically made GPUs could set China’s AI industry “on fire”.
While many of the companies in China are rushing to adopt DeepSeek, yet many others are pushing their own AI models forward. Alibaba Cloud released Qwen 2.5-Max just after DeepSeek over the holidays, Beijing-based start-up Zhipu is also in the AI race with its AI assistant app released in October, Chinese start-up Moonshot AI released its own LLM the day DeepSeek released its r1 model, and more. These moves by Chinese companies, and the broader market reaction in the US after the emergence of DeepSeek, reflect on how grave the impact has been on the AI world.
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:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On February 4th, the company reported its fourth-quarter results after markets closed. Revenue of $96.47 billion for the company fell short of the $96.56 billion expected by analysts polled by LSEG. Meanwhile, earnings per share of $2.15 exceeded the $2.13 consensus estimate. The company’s cloud revenue was disappointing at $11.96 billion during the quarter, compared to $12.19 billion expected by Wall Street. Alphabet Inc. (NASDAQ:GOOG) further noted that it will spend $75 billion on its AI buildout this year, which was 29% more than Wall Street expected. As per LSEG data, Wall Street was expecting 2025 capital expenditures of about $58 billion, a modest increase from $52.5 billion spending in 2024. Defending this expenditure, CEO Sundar Pichai said that Google’s Gemini family of AI models is comparable in efficiency to DeepSeek.
“The cost of actually using (AI) is going to keep coming down, which will make more use cases feasible. The opportunity space is as big as it comes, and that’s why you’re seeing us invest to meet that moment.”
-Sundar Pichai.
Overall GOOGL ranks 3rd on our list of the high flying AI stocks this week. While we acknowledge the potential of GOOGL 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 time frame. If you are looking for an AI stock that is more promising than GOOGL 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.
