10 AI Stocks Surging on News and Ratings

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On May 12, investment firm Wedbush removed Alphabet stock from its “Best Ideas” list due to growing investor uncertainty about the long-term impact of AI on its core business. It quoted “the volatility in Alphabet shares introduced by the uncertainty relating to the impact of AI on its business model” as a primary factor for removing the stock from its list.

Even though the firm believes that the company will eventually establish its resilience to the emergence of AI, the process “will take time and potentially leave the shares at a discount to fair value.” Due to this uncertainty, it could cause the stock to trade below what the firm believes is fair value. The firm currently estimates it at $220 per share.

Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $200 implies a 25% upside, however, the Street-high target of $250 implies an upside of 56%.