10. Alphabet Inc. (NASDAQ:GOOGL)
Alphabet Inc. (NASDAQ:GOOGL) is among the best Warren Buffett stocks.
Buffett added Alphabet Inc. (NASDAQ:GOOGL) to his portfolio in 2025, purchasing 17.85 million shares worth $4.34 billion, which made the stock Warren Buffett’s 10th biggest holding as of Q3 2025. Berkshire’s investment in the stock has grown to $5.59 billion as of Q4 2025.
Meanwhile, Alphabet Inc. (NASDAQ:GOOGL) also has support from other hedge funds, with 288 out of 1,041 hedge funds remaining bullish on the stock. The combined hedge fund stake in the company totals $67.07 billion as of Q4 2025.
Alphabet Inc. (NASDAQ:GOOGL)’s bullish outlook stems from the convergence of reaccelerating AI leadership, structural competitive advantages, and validation from both investors and enterprise demand.
In its Q4 2025 investor letter, Columbia Threadneedle Investments pointed to a decisive inflection in 2025, with shares climbing over 25% during the quarter. This came as the Gemini 3 launch repositioned the company from an “AI follower” to an industry leader, helping quarterly revenue go past $100 billion for the first time.
The strong quarterly performance followed the stock’s robust run earlier in the year (+60%), with the surge driven by tangible enterprise traction, including high-profile AI-related wins such as Pentagon contracts and deepened engagement with Anthropic, signaling real monetization of its AI stack.
In another vote of confidence, Heartland Advisors, an investment management company, said in its Q4 2025 investor letter that Alphabet’s strength lies in its strong fundamentals, featuring massive user scale (5 billion+ across platforms), proprietary data, vertically integrated AI infrastructure (custom chips, cloud, LLMs), and consistent free cash flow. Thus, the firm highlighted that the company performed well despite investor worries surrounding AI disruptions.
In its Q4 2025 earnings call, management cited continued momentum in AI-driven cloud demand and product innovation, helping address AI-related concerns.
Despite Jim Cramer’s recent skepticism toward Alphabet Inc. (NASDAQ:GOOGL) in the context of the “memory disruption” theme, the company’s CFO’s comments provide visibility into the company’s 2026 trajectory:
“The investments we have been making in AI are already translating into strong performance across the business as you’ve seen in our financial results. Our successful execution coupled with strong performance reinforces our conviction to make the investments required to further capitalize on the AI opportunity. For the full year 2026, we expect CapEx to be in the range of $175 billion to $185 billion with investments ramping over the course of the year. We’re investing in AI compute capacity to support frontier model development by Google DeepMind, ongoing efforts to improve the user experience and drive higher advertiser ROI in Google services, significant cloud customer demand, as well as strategic investments in Other Bets.”
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that operates Google services, including search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also offers cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers, as well as healthcare-related services and internet services.
