10 Must-Watch AI Stocks on Wall Street

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1.  Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 227

Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 Must-Watch AI Stocks on Wall Street. On August 13, Cantor Fitzgerald analyst Deepak Mathivanan reiterated a Neutral rating on the stock with a $201.00 price target. The rating affirmation comes amid reports of an unsolicited acquisition bid from Perplexity for its Chrome browser.

The firm believes that a Chrome divestiture could lead to “material value destruction” for Alphabet both financially and operationally.

“Press sources reported that Perplexity has submitted an unsolicited bid to acquire Chrome browser from GOOGL for $34.5B… Although GOOGL doesn’t monetize Chrome directly, the value of the asset to GOOGL is very significant… Assuming Chrome as a standalone entity hypothetically captures 25% of current monetization, we believe Chrome could be generating $10-11B in EBIT and potentially valued near $140B at 15x PE. The bigger takeaway is that Chrome divestiture could lead to material value destruction for GOOGL both financially and operationally… The investment community continues to wait for the remedy ruling from Judge Mehta in the US vs. GOOGL Antitrust trial. Among the remedies proposed by the DOJ, we continue to believe that Chrome divestiture is likely to be the most disruptive for GOOGL in the medium to long term but also the least likely to be included in the ruling.”

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

While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks in the Spotlight Today and 10 AI Stocks Analysts Are Tracking Closely.

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