We recently published a list of Top 12 Tech Stocks to Buy According to Billionaire Ken Fisher. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against other top tech stocks to buy according to billionaire Ken Fisher.
Under the umbrella of Fisher Asset Management, Billionaire Ken Fisher has maintained a positive stance on technology stocks, particularly those within the “Magnificent Seven.” While emphasizing the strong performance of these large-cap growth companies, Fisher emphasizes that the ongoing bull market extends beyond just these high-profile names. According to him, the 2024 rally has been broader than it is generally perceived, with growth stocks, especially in tech and communication services, consistently outperforming their value and small-cap counterparts.
Ken Fisher’s discussion revealed a notable trend: tech stocks have tended to outperform during market upswings and underperform during downturns. This pattern, evident throughout the statistics of 2024, strengthens the theory that if investors believe in a continuing bull market, technology stocks will likely remain strong performers. Although they may not always lead the market consistently or across every metric, according to historical evidence, their overall performance consistently outshines most other sectors and groupings.
Fisher’s perspective suggested that while technology stocks may not dominate the market indefinitely, their performance still serves as a bellwether for broader market sentiment. He stated that investing in these companies is not about expecting perfection but recognizing that in bullish environments, they tend to deliver higher returns. At the same time, he warned against focusing too narrowly on these names, as the broader growth category spanning across sectors is also poised to benefit from favorable market conditions.
In summary, Fisher Asset Management’s investment approach shows confidence in the long-term prospects of technology stocks. Though Ken Fisher concedes there are no certainties in the market, he points to a clear directional relationship: when the market rises, these stocks tend to rise more; when it falls, they decline more. For Fisher, this reinforces the strategic value of maintaining strong exposure to tech-driven growth stocks in a bullish environment.
Our Methodology
We searched through Fisher Asset Management’s Q4 2024 13F filings to identify the top tech stocks that the firm is invested in. From the resultant data, we ranked the technology equities based on his hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds 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).
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Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q4: 174
Fisher Asset Management’s Equity Stake: $9.58 Billion
Alphabet Inc. (NASDAQ:GOOGL) continues to solidify its position at the forefront of the tech industry, driven by advancements in artificial intelligence, cloud computing, and digital advertising. Although advertising on platforms like Search and YouTube remains the company’s primary revenue stream, Google Cloud has emerged as a significant growth engine, posting a 30% year-over-year increase to $12 billion in Q4 2024. Overall, Alphabet Inc. (NASDAQ:GOOGL) reported strong fourth-quarter earnings, with revenue climbing 12% year-over-year to $96.5 billion and earnings per share (EPS) increasing 31% to $2.15, surpassing analyst expectations.
Looking ahead, Alphabet Inc. (NASDAQ:GOOGL) is placing substantial bets on artificial intelligence as a key driver of future growth. CEO Sundar Pichai announced that the company plans to allocate approximately $75 billion in capital expenditures for 2025, largely directed toward the development of generative AI technologies. The upcoming Google Cloud Next conference, set to begin on April 9, is expected to be a pivotal event for the company, with major announcements centered around its Gemini AI models. These models, including the recently introduced Gemma 3, are expected to be among the most powerful in the market, outperforming offerings from competitors such as Meta, DeepSeek, and OpenAI.
The generative AI market is forecasted to grow at an annual rate exceeding 44%, potentially reaching over $47 billion by 2030. Alphabet Inc. (NASDAQ:GOOGL)’s decisive investment in AI could prove to be a game-changer, especially as the company leverages its cloud infrastructure to support enterprise adoption of AI tools. This strategic positioning is expected to not only enhance its competitive edge but also significantly boost revenue in the coming years. For the upcoming quarter, analysts project earnings per share of $2.04, a 7.94% increase from the same period last year, and revenue of $75.67 billion, representing an 11.94% year-over-year growth. For the full fiscal year, Alphabet Inc. (NASDAQ:GOOGL) is expected to generate $334.55 billion in revenue and $8.89 in earnings per share, reflecting steady growth supported by AI advancements and infrastructure investments.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) (parent company Alphabet) generated strong double-digit returns during the quarter, as the company’s tremendous innovation in AI, along with strength in its core business of search and advertising and a healthy focus on profit growth and shareholder friendly capital allocation, shifted investor focus away from ongoing litigation with the Department of Justice related to market dominance. In the month of December alone, Google released to the public Gemini 2.0, its most capable AI model yet, as well as new generative image and vision models. And if that was not enough, Google also announced progress in quantum computing. Once considered an AI laggard, the flurry of product announcements and AI development did not go unnoticed by the market and the stock reacted accordingly.”
Overall, GOOGL ranks 5th on our list of top tech stocks to buy according to billionaire Ken Fisher. While we acknowledge the potential of tech companies, 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 went up since the beginning of 2025, while popular AI stocks 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.
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Disclosure: None. This article is originally published at Insider Monkey.