5. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q4: 174
Fisher Asset Management’s Equity Stake: $9.58 Billion
Alphabet Inc. (NASDAQ:GOOGL) continues to solidify its position at the forefront of the tech industry, driven by advancements in artificial intelligence, cloud computing, and digital advertising. Although advertising on platforms like Search and YouTube remains the company’s primary revenue stream, Google Cloud has emerged as a significant growth engine, posting a 30% year-over-year increase to $12 billion in Q4 2024. Overall, Alphabet Inc. (NASDAQ:GOOGL) reported strong fourth-quarter earnings, with revenue climbing 12% year-over-year to $96.5 billion and earnings per share (EPS) increasing 31% to $2.15, surpassing analyst expectations.
Looking ahead, Alphabet Inc. (NASDAQ:GOOGL) is placing substantial bets on artificial intelligence as a key driver of future growth. CEO Sundar Pichai announced that the company plans to allocate approximately $75 billion in capital expenditures for 2025, largely directed toward the development of generative AI technologies. The upcoming Google Cloud Next conference, set to begin on April 9, is expected to be a pivotal event for the company, with major announcements centered around its Gemini AI models. These models, including the recently introduced Gemma 3, are expected to be among the most powerful in the market, outperforming offerings from competitors such as Meta, DeepSeek, and OpenAI.
The generative AI market is forecasted to grow at an annual rate exceeding 44%, potentially reaching over $47 billion by 2030. Alphabet Inc. (NASDAQ:GOOGL)’s decisive investment in AI could prove to be a game-changer, especially as the company leverages its cloud infrastructure to support enterprise adoption of AI tools. This strategic positioning is expected to not only enhance its competitive edge but also significantly boost revenue in the coming years. For the upcoming quarter, analysts project earnings per share of $2.04, a 7.94% increase from the same period last year, and revenue of $75.67 billion, representing an 11.94% year-over-year growth. For the full fiscal year, Alphabet Inc. (NASDAQ:GOOGL) is expected to generate $334.55 billion in revenue and $8.89 in earnings per share, reflecting steady growth supported by AI advancements and infrastructure investments.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) (parent company Alphabet) generated strong double-digit returns during the quarter, as the company’s tremendous innovation in AI, along with strength in its core business of search and advertising and a healthy focus on profit growth and shareholder friendly capital allocation, shifted investor focus away from ongoing litigation with the Department of Justice related to market dominance. In the month of December alone, Google released to the public Gemini 2.0, its most capable AI model yet, as well as new generative image and vision models. And if that was not enough, Google also announced progress in quantum computing. Once considered an AI laggard, the flurry of product announcements and AI development did not go unnoticed by the market and the stock reacted accordingly.”
