10 AI Stocks Every Investor Should Watch

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 219

Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 AI Stocks Every Investor Should Watch. On September 24, Cantor Fitzgerald analyst Deepak Mathivanan reiterated a Neutral rating and $201.00 price target on the stock. The rating update follows Alphabet’s recent strategic product launches.

In the three weeks since the remedy ruling, Google has unveiled several product launches and integrations aimed at boosting the adoption of Gemini. The most notable has been Gemini’s integration into Chrome for Mac and Windows desktop users. iOS support is also coming soon.

Given Chrome’s 4 billion monthly users, 70% market share on desktops, and 35% contribution to search revenue, it is going to be a major distribution channel for AI adoption.

Moreover, even though Gemini’s monthly active users are currently less than 10% of total Chrome users, the firm anticipates Alphabet to promote the AI assistant within the browser to drive adoption aggressively.

The firm also highlighted how data from OpenAI has shown that ChatGPT users perform an average of 3.5 queries daily. This is similar to the roughly 3 search queries performed on Google Search worldwide (excluding China).

This implies that AI assistants could achieve comparable engagement levels over time.

“With over 4B MAUs and 70% market share on desktops, Chrome has historically been a powerful distribution channel for GOOGL offerings. Chrome accounts for ~35% of total search revenue overall. This integration brings advanced AI experiences of Gemini, including agentic browsing, context search, and cross tab interactions, to search users directly from the Chrome browser. The discovery of the Gemini icon on the browser is still less than ideal, but we expect GOOGL to merchandise Gemini on Chrome aggressively – which should help adoption. Gemini MAU still represents <10% of the total Chrome MAUs. Additionally, recent data from OpenAI indicates an average WAU performs ~3.5 queries daily on ChatGPT, consistent with the average of ~3 search queries on GOOGL search worldwide (ex-China) – which indicates that AI assistants could achieve search type of engagement or higher over time. As such, we think GOOGL is well positioned to see search query acceleration over next few quarters from several factors, including coverage growth of AI overviews and Gemini integrations inside existing apps.”

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.