ChatGPT Stock Advice: Top 12 Stock Recommendations

3. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) owns several notable platforms such as Google Search, Google Maps, Gmail, and YouTube. The company is also known for pioneering work and research in cloud computing, quantum computing, and artificial intelligence.

On March 18, the company announced that Google had signed an agreement to acquire Wiz, Inc., a leading cloud security platform, for $32 billion in an all-cash transaction. After the completion of the acquisition, Wiz will join Google Cloud and help Alphabet Inc. (NASDAQ:GOOGL) accelerate two growing trends in artificial intelligence: improved cloud security and multicloud.

On April 24, Alphabet Inc. (NASDAQ:GOOGL) declared impressive financial results for the first quarter of fiscal 2025. It reported consolidated revenues of $90.2 billion, up 12% year-over-year, driven by robust momentum across the business. Total operating income rose by 20%, while net income surged 46% to $34.5 billion. Earnings per share increased 49% from the prior year to $2.81, smashing estimates of $2.01 per share.

Investors were also buoyed by Google’s better-than-expected 8.5% increase in advertising revenue, which signaled that Alphabet Inc. (NASDAQ:GOOGL)’s bold bets on artificial intelligence were paying off. It also comes as a welcome development amid concerns that a decline in ad spending due to ongoing trade wars could dent the digital advertisements market.

Despite plunging by 13.35% this year, Alphabet Inc. (NASDAQ:GOOGL) is among the top picks in ChatGPT’s stock advice due to its dominant position in digital advertising, coupled with rapid expansion in AI and cloud computing.

In December last year, the company launched its latest quantum computing chip, called Willow, which has been described as a major breakthrough by industry experts. The chip is expected to be useful for large-scale simulation and code-breaking when quantum computing matures. The technology will help reduce errors exponentially as it scales up using more qubits.