15 Best Blue Chip Stocks to Buy According to Billionaires

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Billionaire Investors: 33

Number of Hedge Fund Holders: 174

Alphabet Inc. (NASDAQ:GOOG) is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube. Alphabet Inc. (NASDAQ:GOOG) also has sound operations. Fiscal Q4 2024 showed a 12% growth in overall revenue and a 12.5% growth in search revenue. YouTube grew by 13.8%, while revenue from Google Cloud rose by around 30% to $12 billion.

On March 18, Alphabet Inc. (NASDAQ:GOOG) announced a definitive agreement to acquire Wiz, Inc., a leading cloud security platform, for $32 billion. Wiz will join Google Cloud, with the acquisition reflecting Google Cloud’s notable investment in accelerating the two rising trends in AI: the ability to use multiple clouds and enhanced cloud security.

Alphabet Inc. (NASDAQ:GOOG) ranks fourth on our list of the top blue chip stocks to invest in according to billionaires. Analysts are bullish on the stock, and its median price target of $159.40 implies an upside of 31.74% from current levels.

Merion Road Capital Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOG): We have held GOOG for a long time (since 2018) on the basis of its immense business quality paired with an undemanding valuation, improving treatment of minority shareholders, and multiple options for value creation. Recently we have seen Alphabet bashed for losing the AI race to now heralded for its progress. I remain excited about their prospects with several near-term, mid-term, and long-term tailwinds. Near-term, Google Cloud continues its rapid growth and their latest large language model, Gemini 2.0, appears to have made significant progress to better serve consumer needs and improve GOOG’s other product offerings. Mid-term, Waymo is on the cusp of becoming a real value driver for the company; there are abundant articles discussing Waymo stealing share from the ride-share economy and launching in new geographies. Long-term, GOOG’s recently announced quantum computing chip positions it well for a future (many, many years away) where computing process are fundamentally different than today. All of these options are embedded in a company that already has an established and dominant earnings stream.”