1. Alphabet Inc. (NASDAQ:GOOGL)
Alphabet Inc. (NASDAQ:GOOGL) was among the stocks on which Jim Cramer gave his opinion, as he warned that increased AI-related spending might cause near-term headwind for stocks. Cramer commented on the company raising money for the data center build-out, as he said:
Now, we should be heartened by what happened to the stock of Alphabet today. They were able to raise some $45 billion out of $85 billion that they wanted to raise totally, pretty much in a snap, and the stock even traded up briefly after the pricing. Perhaps that’s because Berkshire Hathaway bought $10 billion worth, good imprimatur, even if it’s the Greg Abel Berkshire and not the Warren Buffett version. I think Goldman Sachs did a remarkable job placing that deal. Point is, Alphabet could raise serious money and look at the action in the stock… you know, barely notice. It was the first though, in the shoot for these companies. That was a really smart move.
Alphabet Inc. (NASDAQ:GOOGL) provides technology-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms such as YouTube and Google Play. Cramer mentioned the company during the June 1 episode and commented:
I saw that Amazon and Alphabet were pointedly absent among the winners, that’s right, although Jensen did mention that Alphabet uses some of their most advanced products. Alphabet, by the way, announced, after the close, it’s going to raise an astounding $80 billion in equity with Berkshire Hathaway agreeing to buy $10 billion of that in a private placement deal. Amazon stock’s down, along with that, by the way. Jensen’s not mentioning much about Amazon and Alphabet is important because they have their own lines of chips, which Jensen continues to challenge, but neither feels the need to defend itself. That’s a debate I’ve thrust myself into, saying that you need to be in all three companies because the opportunity’s so great. That’s right. I’m not saying either/or; I like them all.
While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about the cheapest AI stock.
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