Janus Henderson Investors, an investment management company, released its third-quarter 2025 investor letter for its “Janus Henderson Global Technology and Innovation Fund”. A copy of the letter can be downloaded here. The technology sector generated strong results in the quarter, driven by the semiconductor complex and hardware makers, which outpaced the broader equities. The fund returned 9.19% in the quarter, compared to the S&P 500 Index’s 8.12% return and the MSCI All Country World Information Technology Index’s 12.76% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Janus Henderson Global Technology and Innovation Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return for Alphabet Inc. (NASDAQ:GOOG) was -2.46%, and its shares gained 59.78% over the last 52 weeks. On December 23, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $315.68 per share, with a market capitalization of $3.8 trillion.
Janus Henderson Global Technology and Innovation Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOG), a leading contributor, generated strong returns as the market perceived it as moving from an AI loser to a potential winner. The impetus behind the improving sentiment was its Gemini tool ascending the ranks of downloaded AI platforms. The company also benefited from a favorable resolution to a case brought by the U.S. government. In the settlement, Alphabet can still bid for placement of its search platform on devices but not seek exclusivity.”
Alphabet Inc. (NASDAQ:GOOG) is in the 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter which was 178 in the previous quarter. In the third quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved its first-ever $100 billion in revenue. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
