11 Best Augmented Reality Stocks to Buy According to Hedge Funds

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 174

Alphabet Inc. (NASDAQ:GOOG) ranks fourth on our list of the best augmented reality stocks to buy according to hedge funds. Google employs AR in various ways. For instance, the Live View segment on Google Maps allows users to orient themselves to the area around them and view their surroundings’ directions on a live screen. In November, Google introduced a new augmented reality feature in Google Maps that allows users across the globe to interact with and explore the most iconic landmarks in Paris from the comfort of their homes.

Similarly, Google Lens allows users to search for what they see promptly. Users can identify plants and animals and even scan and translate text. They can also visualize several other elements, such as how makeup products look on their faces and furniture pieces in their houses.

BMO Capital analyst Brian Pitz reiterated their bullish stance on Alphabet Inc. (NASDAQ:GOOG), giving a Buy rating on April 25 due to its strategic positioning and strong growth potential. The company has undergone notable growth in its Search segment, with a 12% growth in FX Neutral Search, which exceeded both BMO and Street forecasts. The analyst attributed this growth to the rising adoption of AI Overviews, which have witnessed a 50% increase in users since October. He also said that the monetization of these AI-driven searches remains robust.

Pitz further said that Alphabet Inc.’s (NASDAQ:GOOG) Google Cloud Platform (GCP) is continually experiencing strong demand, with a 28% growth rate aligning with expectations. YouTube Shorts is also experiencing notable growth in engaged views, highlighting strong user engagement and capturing direct response advertising budgets. These factors support the analyst’s buy rating.