Alphabet Inc. (NASDAQ:GOOGL) is one of billionaire David Abrams’ best stock picks. Alphabet Inc (NASDAQ:GOOGL) is also a Wall Street favorite. The stock carries a consensus Strong Buy rating, and its $377.90 average price target reflects a nearly 20% upside potential.
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AI is shaping up to be a huge economic opportunity. According to a UN report, the global AI market will grow from $189 billion in 2023 to $4.8 trillion by 2033. Alphabet’s Google unit is seeking its fair share of AI dollars with a wide net.
Among other moves, Google is investing in AI startups and offering AI-powered services. Moreover, the company has an opportunity in the AI chips business.
In a conversation with Stripe co-founder John Collison shared on April 7, Google CEO Sundar Pichai said AI is opening up more opportunities to invest in startups. OpenAI rival Anthropic is among the AI startups in which Google has invested. Google has been an early investor in SpaceX.
On April 3, Google and EXL announced a strategic partnership focused on AI-driven cloud solutions. EXL is a global provider of analytics and digital solutions to industries like insurance, healthcare, and financial services. In this arrangement, EXL will increase its use of AI-powered Google Cloud solutions to help clients in sectors like financial services, healthcare, retail, and utilities.
Google built a specialty AI chip called the tensor processing unit (TPU). DA Davidson analyst Gil Luria told Bloomberg in December that selling AI chips to third parties could be a $900 billion business for Google.
Alphabet Inc (NASDAQ:GOOGL), headquartered in Mountain View, California, is the parent company of the internet search engine and cloud computing giant Google. Its other portfolio companies include Waymo in autonomous driving and Verily in life sciences.
While we acknowledge the potential of GOOGL 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.
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