Is Alphabet Inc. (GOOGL) One of the Best Strong Buy Growth Stocks to Buy According to Hedge Funds?

Alphabet Inc. (NASDAQ:GOOGL) is one of the best strong buy growth stocks to buy according to hedge funds. On January 14, RBC Capital reiterated a Buy rating on Alphabet Inc. (NASDAQ:GOOGL) and set a price target of $375. In addition, BofA lifted the price target on Alphabet Inc. (NASDAQ:GOOGL) to $370 from $335 on January 13 and maintained a Buy rating on the stock. The rating update came after Alphabet Inc. (NASDAQ:GOOGL) and Apple announced a multi-year collaboration under which the next generation of Apple Foundation Models would be based on Google’s Gemini models and cloud technology.

In a joint statement released by the two companies on January 12, Apple stated it believes that Google’s AI technology provides “the most capable foundation” for Apple Foundation Models, adding that other future Apple Intelligence Features would also be powered by its models, including a more personalized Siri set to launch this year. According to a Reuters report released the same day, the latest agreement sets Google as the default search engine on Apple’s devices, making it a “lucrative” arrangement that not only drives traffic for Google but also generates tens of billions in annual revenue for Apple.

BofA also cited the partnership between Google and Walmart announced on Sunday at NRF, which aims at bringing Walmart inventory to the Gemini app by employing Google’s Universal Shopping Protocol. According to BofA, the Apple and Walmart deals warrant a higher multiple, provided stronger evidence of traction for Google’s Gemini capabilities.

Alphabet Inc. (NASDAQ:GOOGL) is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube.

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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Disclosure: None. This article is originally published at Insider Monkey.