Wall Street Picked These 5 AI Stocks for 2024

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This article summarizes Wall Street picked these 5 AI stocks for 2024. For a detailed look at such stocks, read our article, Wall Street Picked These 13 AI Stocks for 2024.

5. Alphabet Inc (NASDAQ:GOOG)

Number of Hedge Fund Holders: 166
YTD Performance as of March 7, 2024: -3.6%

Alphabet Inc (NASDAQ:GOOG) uses AI to boost its search dominance. The internet giant offers various internet services, such as search, ads, maps, photos, and videos. Alphabet Inc (NASDAQ:GOOG) also has cloud computing.

According to BMO analysts, Alphabet Inc (NASDAQ:GOOG) is best-positioned to benefit from the proliferation of generative AI and large language models.

“While the acquisition of DeepMind in 2014 resulted in a step function increase in AI capabilities, Google has integrated machine learning (“ML”) into its core products since 2000 – this effectively gives Alphabet a 10+ year head start relative to the industry,” the analysts wrote in a note.

Alphabet Inc (NASDAQ:GOOG) rallied by more than 50% last year as it integrated AI into its search and enhancing advertising on YouTube.

As of their fourth quarter of 2023 shareholdings, 166 of the 933 hedge funds covered by Insider Monkey’s research held a stake in Alphabet Inc (NASDAQ:GOOG). The firm’s largest hedge fund investor is Ken Fisher’s Fisher Asset Management, which has invested $6.3 billion.

In its fourth quarter 2023 investor letter, FPA Crescent Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG):

“Alphabet Inc. (NASDAQ:GOOG) continued going from strength to strength during 2023 despite concerns that competition may infringe on the company’s dominant position in Search. Thus far, Alphabet has continued to hold its own, and we look forward to seeing how the company incorporates further AI developments across the Alphabet ecosystem. Lastly, we are hopeful that the impending arrival of a new CFO will bring a renewed focus on efficiency – an area where we believe Alphabet has ample room for improvement.”

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