11 Best Safe Stocks to Buy According to Hedge Funds

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge funds holding: 234

Forward Dividend: $0.80

Alphabet Inc. (NASDAQ:GOOGL) is a global technology company that provides web-based search, consumer content, enterprise solutions, software engines, and advertisements through its subsidiaries. Incorporated in 1998, the segments of the company include Google Services, Google Cloud, and Other Bets. The powerhouse is dedicated to making the world’s information universally accessible and useful.

You might not think about it, but your everyday habit of turning to Alphabet Inc. (NASDAQ:GOOGL) search engine, Google, speaks volumes about its long-term growth and potential. Coupled with the AI efforts by the company, there is no questioning its position as the world’s largest digital advertiser. This is a bullish factor in itself, considering that the market is anticipated to project a 15.4% CAGR by 2030. Similarly, amid a continuously growing video streaming market, the company’s YouTube segment is also bound to expand.

In addition to these, a secular cloud and AI transition further strengthen the bullish case. Among the “Big Three” global cloud infrastructure providers is Google Cloud, a testament to the company’s AI game. Just recently, Alphabet Inc. (NASDAQ:GOOGL) reaffirmed its plan to invest an outstanding $75 billion in capex.

The company’s direction with the recent partnerships confirms that it is heading north. Whether we talk about the famous Reddit platform that embeds Google’s Gemini AI to power its conversational interface, or Samsung Electronics that leverages Google Gemini to power its home robot companion, Alphabet Inc. (NASDAQ:GOOGL) AI is everywhere.

The company’s return on capital (ROE), standing at 32%, is traditionally quite strong. The operating margins, too, are scaling over the past quarters. It wasn’t luck that expanded these margins, but the giant’s rigorous efforts to drive efficiency. With that being said, the company’s Waymo initiative is the seal of the positive outlook as the robotaxi market is likely to be the fastest-growing segment with an expected 60% CAGR for the next decade. Thus, these initiatives make Alphabet Inc. (NASDAQ:GOOGL) one of the best safe stocks according to hedge funds.