We recently published a list of 13 AI News and Ratings You Probably Missed. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against other AI stocks.
As per a CNBC report, in 2025, significant changes are expected in global AI regulation, especially in the U.S., the EU, and the UK. President-elect Donald Trump, who is supported by business leaders like Elon Musk, may influence AI policies, with Musk’s experience in AI raising expectations for U.S. advancements. In Europe, the EU’s AI Act has introduced comprehensive regulations, but tensions with U.S. tech companies are still there over its strict measures.
Meanwhile, the U.K. is considering a more flexible, principles-based approach, especially regarding the use of copyrighted content for AI training. Additionally, U.S. and China relations could affect global AI development, with both countries competing for AI dominance and potentially creating safety regulations to prevent uncontrolled AI advancements.
READ ALSO: 15 AI Stocks That Skyrocketed in Q4 and 14 AI Stocks Making Waves on Wall Street.
Navigating the AI Investment Landscape
AI is driving a major transformation in technology as significant investments are being funneled into infrastructure, data centers, and the AI value chain. Companies are rapidly building out AI infrastructure, with an increasing focus on supply chain components beyond just semiconductors, which highlight potential profits in sectors like memory, cooling, and fiber optics.
Jon McNeill, co-founder of Vistashares, discussed the impact of AI infrastructure on investment opportunities in an interview with Romaine Bostick and Scarlet Fu of Bloomberg. He explained that while AI’s impact on data centers is often discussed in terms of semiconductors, the actual supply chain involves different elements, such as memory, cooling, and fiber optics. McNeill emphasized the potential for profits in the AI supply chain, especially for investors looking beyond the major producers to lesser-known companies.
He also addressed the risks of international investments and noted that while the U.S. dominates the AI sector, Asia is rapidly building its own AI infrastructure. McNeill highlighted the growing value of AI applications in autonomous driving and robotics, which could drive significant economic growth. He pointed to large investments in data centers, such as AWS’ $11 billion investment in Georgia, as signs that this growth will continue, with the major tech companies leading the charge in the AI race.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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 user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) provides AI-driven solutions across various platforms, improving cloud services, business collaboration tools, and consumer products, while also focusing on advancing AI research.
At CES 2025, Alphabet Inc. (NASDAQ:GOOGL) announced an upgrade for its Google TV operating system as it integrates Gemini into the Google Assistant voice-control system. This upgrade will be rolled out later in the year and it enables more natural conversations with third-party TVs, eliminating the need for the “Hey Google” prompt.
It also makes content search better and offers deeper YouTube integration, including the ability to access Google Photos. The Gemini upgrade will first appear on third-party TVs from brands like Sony, Hisense, and TCL, following its initial release on Google’s streaming box. Additionally, Google previewed an “always-on” mode for certain TVs, which will display useful information when a user approaches. TCL will be the first to implement this feature in late 2025.
Overall, GOOGL ranks 3rd on our list of AI news and ratings you probably missed. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that 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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.