5 Best Chatbot Stocks to Buy As ChatGPT Gains Market Share

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 209

Alphabet Inc. (NASDAQ:GOOG) was clearly rattled after Microsoft Corporation (NASDAQ:MSFT)’s partnership with OpenAI. For years Alphabet Inc. (NASDAQ:GOOG) was known to have world-class AI technologies but it couldn’t take a lead in shipping a viable AI product for the masses due to several reasons. After ChatGPT, Alphabet Inc. (NASDAQ:GOOG) was quick to launch its own AI-based chatbot, called Bard, which went through some initial hiccups, causing huge losses for the company amid public embarrassment. However, Alphabet Inc. (NASDAQ:GOOG)’s AI is extremely advanced and developed due to its years-long experience in the industry and its DeepMind technologies. BofA recently said that Alphabet Inc. (NASDAQ:GOOG) stands to benefit from the AI space due to its DeepMind Sparrow LLM and its recent Bard chatbot.

Insider Monkey’s database of 943 hedge funds shows 209 hedge funds had stakes in Alphabet Inc. (NASDAQ:GOOG) at the end of 2022.

Baron Opportunity Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2022 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) remains the second largest position in the portfolio, and we continue to be positive on its growth opportunities with search, YouTube, and cloud computing, but we decided to slightly reduce the position size to fund other investments in software, semiconductors, and digital media, and because ChatGPT and/or similar AI-based services present a hard to measure risk to Google’s virtual search monopoly.”