5 Tech Stocks Benefiting From The AI Boom

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 155

Alphabet Inc. (NASDAQ:GOOG) is a big tech company that is an obvious choice to play the AI boom since it has been adopting AI features across its software portfolios. It is one of TD Cowen’s top AI picks so far.

As of June 8, Wells Fargo holds an Equal Weight rating on Alphabet Inc. (NASDAQ:GOOG) shares.

Our hedge fund data shows 155 funds long Alphabet Inc. (NASDAQ:GOOG) in the first quarter, with a total stake value of $18.6 billion.

Mairs & Power made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its first-quarter 2023 investor letter:

“As we have mentioned in previous months, we have slowly reduced our underweight position in the Technology sector over the past several years, as we have added a number of names that fit our investment strategy. Many of the these investments had impressive returns in the quarter and our relative performance in the tech sector was a bright spot. Four out of our top 5 performing names in the quarter were either Technology or Technology-related names, including: NVIDIA (NVDA), Alphabet Inc. (NASDAQ:GOOG), Littelfuse (LFUS), and Microsoft (MSFT). The stocks all benefited from a positive shift in investor sentiment in the quarter toward growth stocks, reversing last year’s trend. NVIDIA, Alphabet, and Microsoft also all benefited from their exposure to artificial intelligence and the headlines garnered from the widespread launch of ChatGPT a large language model developed by Microsoft partner, OpenAI. In the current tight labor market, there is a lot of enthusiasm around the efficiency this technology could bring to many industries. Alphabet and Microsoft are working furiously to build it into their products and NVIDIA has benefited as it currently has the best hardware to train and run large AI algorithms.”