These 10 Stocks are Buzzing After Important Analyst Calls

3. Alphabet (NASDAQ:GOOG)

Number of Hedge Fund Investors: 178

Dan Niles, Niles Investment Management founder and portfolio manager, said in a latest program on CNBC that he believes Alphabet will have the “best app” in terms of AI. Niles said Alphabet’s biggest edge is the user data it has because of YouTube.

“I look at Google for the long term and I go, I think they’re going to have the best app in terms of AI,” Niles said, “Because if you think about it, what makes an AI app smart? It’s data. Well, they’ve got the most free data in the world because of YouTube. And so if you think about what’s the most expensive thing to create, it’s video. You combine that with the fact that it’s trading at a market multiple at 25 times. You’ve got Meta at 27 times PE and then you’ve got the AI names in the 30s, and the stock has a long way to go, especially given that antitrust remedy was way better than any of us ever imagined. They can pay to be the default search engine. They don’t have to go ahead and spin off any of their divisions. I mean they’re in great shape when you look out over the next 5 to 10 years I think.”

Alphabet Inc. (NASDAQ:GOOG) bulls believe concerns around AI-related threats to Google search are overstated. Google has an edge over competitors because it’s easier for the billions of users of its search engine to switch to Gemini instead of opting for a completely new model. As of April, Google had over 1.5 billion monthly users interacting with its AI-powered Search overviews.

Google’s competitor OpenAI failed to impress the market with its GPT-5 model, while Gemini is gaining traction with new features. Analysts believe the company is strongly positioned to start placing ads in AI search results, which means its core ads business will not be impacted despite the decline in traditional search.

Pershing Square Holdings stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its second quarter 2025 investor letter:

“Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, is successfully executing on its vast AI potential. The company’s key advantages – stemming from industry-leading models, a full-stack approach to technical infrastructure (including proprietary chips), access to high-quality data, rapidly improving product launch velocity and a robust distribution ecosystem of seven different apps with over two billion users each – are beginning to meaningfully widen Google’s moat and competitive differentiation in AI.

In its core Search product, the company’s AI leadership is most evident in its broad roll-out of AI-powered summary responses, called “AI Overviews”. AI Overviews are now being served to more than two billion users across 200 countries, making it the most widely used consumer AI product. AI Overviews are resulting in users asking more detailed questions, clicking through at higher rates and searching with greater frequency. On the back of AI Overviews’ success, the company has also introduced “AI Mode”, which more closely resembles a chat-like user experience, directly onto the Search page…” (Click here to read the full text)