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Is Alphabet Inc. the Best Goldman Sachs Tech Stock to Buy Now?

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%.

Pixabay/Public Domain

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.

While we acknowledge the risk and potential of 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 GOOGL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Oversold Financial Stocks to Invest in According to Hedge Funds.

Disclosure: None. Follow Insider Monkey on Google News.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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