We recently published a list of 12 Best Major Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against other best major stocks to buy according to billionaires.
The U.S. stock market had one of the worst starts, at least the worst start to a presidency since 1928. The S&P 500 is just recovering following the latest U.S.-China trade deal update, as both countries have agreed to significantly cut tariffs on each other’s imports for 90 days. The S&P 500 index is up by a meagre 0.30% year-to-date, as tech stocks rallied following the tariff reduction.
ALSO READ: 13 Best Technology Stocks to Buy for Long-Term Investment
Tariffs on Hold
Markets finally had a sigh of relief after the U.S.-China trade deal. The tariff reduction potentially negates all bear cases anticipated by Wall Street analysts based on the tariff risks. Sylvia Jablonski, CEO and CIO of Defiance ETFs called the tariff cut a “game changer” in a recent appearance on a CNBC show.
“I think both countries probably saw a little bit of the demise of what would be here with a non-tariff deal as the data came in. You had a lot of complaints around China across all sectors, and then in the US, retailers were reaching out to President Trump and saying that shelves are empty and, you know, a lot of panic about semiconductor software companies. I think that this is really a game changer for both countries, and the big message here is that both countries, it sounds like, decided that they really don’t want to decouple, and, you know, make America great might also mean that, you know, China stays.”
President Trump’s Betting Big on AI
President Trump and his team at the White House have secured around $2 trillion in new company investments since Inauguration Day. The administration emphasizes that these investments indicate a broad economic renaissance. The tech giants are investing following the President’s plan to bring investments into the US. According to Yahoo Finance, these investments are mainly clustered in the world of Big Tech and largely come from sectors where Trump’s Final tariff plans are most uncertain.
Apple and Nvidia have promised to invest $500 billion each in AI infrastructure, manufacturing, and training. Healthcare and new pharmaceutical manufacturing account for almost 11% of the total investments to be made in the U.S., as per Yahoo Finance.
Our Methodology
We have listed the 12 Major Stocks to Buy According to Billionaires, according to Insider Monkey’s database. We picked the 12 stocks with the highest number of billionaire investors, updated as of Q4 2024. All of these billionaire investors are founders or managers of some of the top hedge funds in the world. We have also mentioned the number of hedge funds holding stakes in these stocks. The best major stocks are ranked in ascending order of the number of billionaires that have stakes in them.
Why are we interested in the stocks that hedge funds and billionaire investors pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOGL)
No. of Billionaire Holders: 33
No. of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that operates through subsidiaries. The company provides web-based searches, advertisements, enterprise solutions, software applications, commerce, and hardware products. Google has recently announced its AI Futures Fund, a new initiative that will invest in startups that are building with the latest AI tools from Google DeepMind.
Alphabet Inc. (NASDAQ:GOOGL) reported another strong quarter with revenue of $90.23 billion during Q1 2025, beating estimates by $1.08 billion. The company posted adjusted earnings per share of $2.81, exceeding consensus estimates by $0.80. The strong results were driven by robust performance across Google Search, YouTube ads, and Google Cloud. The cloud revenue soared 28% year-over-year to $12.3 billion, driven by AI Infrastructure and Generative AI demand.
On May 12, Gil Luria from D.A. Davidson downgraded the rating on GOOGL from Neutral to Hold, keeping the price target at $160. Luria addressed Google’s current issues with the Department of Justice (DOJ) and the ongoing antitrust case. The analyst believes that Google is headed toward a “passive-aggressive” spin-off of its Network and potentially Chrome/Android divisions. Luria mentioned that the company will try to appease the DOJ, however, the debate over Google Search will not end anytime soon. Luria also pointed out that the eventual break-up could turn out to be a net positive for Google. Evercore ISI holds an Outperform rating with a price target of $205, following strong quarterly results and robust demand for cloud business.
Overall, GOOGL ranks 4th on our list of best major stocks to buy according to billionaires. While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
