Jim Cramer on AMD and Other Stocks

1. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 216

Cramer called Alphabet Inc.’s (NASDAQ:GOOGL) recent earnings report impressive and praised the company’s relatively new CFO.

“Alphabet, on the other hand, reported an unambiguously fantastic quarter. Anat Ashkenazi, I told you, she’d be good, the CFO used to be over at Lily… I was worried about Alphabet because there’s so many moving parts… although we still own it for the Charitable Trust. This time, Alphabet handily beat the estimates. Big numbers from Google Cloud business… and strong ad sales for Search, and yes, YouTube. Just an excellent quarter, one that allowed the stock to roar in after-hours trading even though it had already run up into earnings. Very impressive.”

Alphabet (NASDAQ:GOOGL), established as the parent company of Google following a restructuring in 2015, continues to demonstrate significant growth across its various business segments. On October 29, the company released its third-quarter results, revealing noteworthy financial metrics. Net income experienced a remarkable increase of 34%, with earnings per share rising by 37% to reach $2.12.

Alphabet’s (NASDAQ:GOOGL) consolidated revenues reached $88.3 billion, marking a 15% increase, or 16% when adjusted for constant currency, compared to the same quarter the previous year. Google Cloud reported substantial revenue growth of 35%, totaling $11.4 billion.

This growth was driven by accelerated advancements in areas such as AI Infrastructure, Generative AI Solutions, and core Google Cloud Platform products, indicating a significant shift toward cloud services in the tech industry. Additionally, YouTube has also made significant strides, with total ad and subscription revenues surpassing $50 billion over the past four quarters for the first time.

While we acknowledge the potential of Alphabet Inc. (NASDAQ: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 timeframe. 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.

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