Billionaire Chris Hohn’s 8 Stock Picks with Huge Upside Potential

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders as of Q4: 234

TCI Fund Management’s Equity Stake: $3.14 Billion

Upside Potential as of May 6: 21.29%

Alphabet Inc. (NASDAQ:GOOGL), a parent company of Google, remains one of the most dominant forces in the global technology sector. Among Chris Hohn’s stock picks, Alphabet stands out with a notable upside potential of 21.29%, positioning it as one of the top stocks with significant growth prospects. In the first quarter of 2025, the company delivered a strong financial performance, reporting earnings per share of $2.81 on revenue of $90.2 billion. Both figures exceeded analyst expectations, which called for EPS of $2.01 and revenue of $89.1 billion. This performance represents a significant year-over-year increase from Q1 2024, when Alphabet posted EPS of $1.89 on revenue of $80.5 billion.

The company’s advertising business remained the backbone of its earnings, bringing in $66.8 billion, slightly ahead of consensus estimates. Meanwhile, its cloud segment posted $12.2 billion in revenue, a sharp improvement from $9.5 billion a year earlier, although it narrowly missed forecasts. Alphabet Inc. (NASDAQ:GOOGL)’s focus on AI infrastructure and tools continues to position it well for long-term growth, with strategic investments enhancing both its consumer and enterprise offerings.

Institutional confidence in Alphabet Inc. (NASDAQ:GOOGL) is rising. By the end of Q4 2024, hedge fund ownership in the company increased substantially. A total of 234 hedge funds tracked by Insider Monkey held stakes in the company, up from 202 in the prior quarter, with aggregate holdings valued at $39.59 billion. This surge underscores a strong endorsement from professional investors.

However, Alphabet’s market dominance has come under legal scrutiny. In April 2025, a federal judge ruled that Google holds an illegal monopoly in online advertising, raising the possibility of enforced divestitures. This ruling follows an earlier antitrust decision against its search and ad units. While these legal risks remain material, Alphabet Inc. (NASDAQ:GOOGL)’s diversified revenue base and continued innovation in AI and cloud technologies suggest the company is well-equipped to weather regulatory challenges and deliver sustained growth.

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.”