5 Best Artificial Intelligence Stocks To Invest In Right Now

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 185

Alphabet Inc. (NASDAQ:GOOGL) ranks 4th on the list of 12 best artificial intelligence stocks to invest in right now. The California-based multinational tech giant utilizes AI in Google’s search engine, Google’s Ads and Doubleclick, Google Maps, Gmail, Google Drive, Google Calendar, Google Translate, among others. 

Alphabet Inc. (NASDAQ:GOOGL) acquired over 30 AI startups since 2009 including PittPatt, DeepMind, Onward, and AppSheet. One of the most recent acquisitions of the company was the smartwatch company Fitbit. Alphabet Inc. (NASDAQ:GOOGL) has soared 81% in the twelve months.

On July 29th, Argus analyst Joseph Bonner raised the price target of Alphabet Inc. (NASDAQ:GOOGL) from $2,800 per share to $3,100 per share and kept his Buy rating on the stock. The analyst highlighted GOOGL’s notable second-quarter results.

The company has a market cap of $1.81 trillion. In the second quarter of 2021, Alphabet Inc. (NASDAQ:GOOGL) reported an EPS of $27.26, beating estimates by $8.05. The company’s second-quarter revenue came in at $61.88 billion, beating revenue estimates of $56.02 billion. Shares of Alphabet Inc. (NASDAQ:GOOGL) increased 54% in the year-to-date.

There were 185 hedge funds that reported owning stakes in Alphabet Inc. (NASDAQ:GOOGL) at the end of the first quarter. The total value of these stakes at the end of Q1 is $24.57 billion.

Baillie Gifford mentioned Alphabet Inc. (NASDAQ:GOOGL) in its Q2 2021 investor letter:

“Whilst several sources of upside remain, namely in the cloud business, hardware, and YouTube subscriptions, we have waning conviction in Alphabet‘s ‘moonshot’ bets (such as Waymo), substantial success in which would likely be required to produce a 5x return from here. Given the reduction in our assessment of the probability-adjusted upside, and with strong competition for capital in the portfolio, we therefore sold the Alphabet holding.”