Broad-Based Momentum Lifted Alphabet (GOOGL) in Q3

Renaissance Investment Management, an investment management company, released its Q3 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. Stock prices continued to rally in the third quarter, with the S&P 500 climbing to all-time highs during September. The Russell 1000 Growth returned 10.5% and the S&P 500 returned 8.1% in the quarter. However, the strategy underperformed both the Russell 1000 Growth benchmark and the S&P 500. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Renaissance Large Cap Growth Strategy highlighted stocks such as Alphabet Inc. (NASDAQ:GOOGL). Alphabet Inc. (NASDAQ:GOOGL) is a leading technology company that provides various products and platforms. The one-month return of Alphabet Inc. (NASDAQ:GOOGL) was 10.33%, and its shares gained 61.51% of their value over the last 52 weeks. On October 27, 2025, Alphabet Inc. (NASDAQ:GOOGL) stock closed at $269.27 per share, with a market capitalization of $3.26 trillion.

Renaissance Large Cap Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its third quarter 2025 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) also contributed after reporting solid operating results with broad-based momentum across all its operating segments. Improving user engagement has driven an acceleration in digital advertising growth with no signs that AI is negatively impacting the company’s search business. Despite increasing investments in artificial intelligence, Alphabet has been one of the few companies that has demonstrated the ability to monetize AI applications. Also helping sentiment is a favorable court ruling that will not require the company to divest its Chrome and Android businesses.”

Alphabet Inc. (NASDAQ:GOOGL) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 219 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOGL) at the end of the second quarter, which was 227 in the previous quarter. While we acknowledge the risk and potential of Alphabet Inc. (NASDAQ:GOOGL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Alphabet Inc. (NASDAQ:GOOGL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Alphabet Inc. (NASDAQ:GOOGL) and shared the list of most promising AI stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.