30 Stocks That Should Double in 3 Years

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) is a technology company that provides web-based search, consumer content, enterprise solutions, software engines, and advertisements through its subsidiaries. The company operates through different segments, which are the Google Services, Google Cloud, and Other Bets segments.

In Q1 2025, Google Cloud generated $12.3 billion in revenue, which was an increase of 28% year-over-year. This was driven by the performance across both the segment’s core offerings and its AI products. Google Cloud is experiencing significant demand for its solutions, particularly in AI infrastructure, agents, and more, as highlighted at Cloud Next, where over 500 companies shared their positive business outcomes from partnering with Google Cloud.

The company’s Vertex AI platform offers over 200 foundation models, which includes its industry-leading Gemini models that enable customers to integrate AI into their operations. BofA Securities recently maintained a Buy rating on Alphabet Inc.’s (NASDAQ:GOOGL) stock.

Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”