3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 265
Alphabet Inc. (NASDAQ:GOOGL) is one of the largest tech stocks held by Goldman Sachs, with a total portfolio value of approximately $16.63 billion, making it to our list of best Goldman Sachs tech stocks to buy now.
Over the past month, as of June 2, Alphabet Inc. shares have plunged by over 4.80%, while year-to-date the stock is up by over 17%. On average, analysts have a price target of $430, implying an upside of more than 17%.
The company is going through a major transition, creating in-house tensor processing units against Nvidia’s processors. The management believes AI is paving the way for an expansionary moment for the company, and its allocated capital will help in scaling the infrastructure needed to boost computing capacity.
On June 2, Alphabet revealed its $80 billion equity round for the expansion of AI infrastructure. Around $40 billion will be raised through an at-the-market share sale program starting from Q3, $30 billion in underwritten common shares and convertible preferred stock, and a $10 billion investment from Berkshire Hathaway.
The company’s core business remains solid, while AI investment continues to increase its CapEx. If the company’s AI expenditure remains defined, which is expected to be around $180 to $190 billion for 2026, Alphabet’s growing Cloud demand and Gemini business will support the stock performance. During Q1 2026, the company achieved $20 billion in revenue from the Cloud business for the first time, growing 63% from a year ago. The growth was mainly driven by robust demand from enterprise AI solutions and infrastructure. The advertising revenue soared to $77.25 billion, up 19% year-over-year. Gemini is also experiencing remarkable growth, with 40% quarter-over-quarter growth in paid monthly active users. Here is what CEO Sundar Pichai said during the Q1 earnings call:
2026 is off to a terrific start. Our AI investments and full-stack approach are lighting up every part of the business. Search had a strong quarter with AI experiences driving usage, queries at an all-time high. Google Cloud revenues grew 63%, with backlog nearly doubling quarter on quarter to over $460 billion. This was our strongest quarter ever for our consumer AI plans, driven by the Gemini App. And, finally, I’m pleased to see Waymo surpass 500,000 fully autonomous rides a week.
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that operates Google services, including search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also offers cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers, as well as healthcare-related services and internet services.
