ChatGPT Stock Advice: Alphabet Inc. (GOOGL) Among Top Stock Recommendations

We recently published a list of ChatGPT Stock Advice: Top 12 Stock Recommendations. In this article, we will take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against other top stock recommendations by ChatGPT.

After a two-year surge of 53%, the stock market has been taken for a wild ride in 2025, driven by uncertainties surrounding the escalating trade wars. As of the close of business on May 2, the broad market index was down by 3.31% year-to-date.

READ ALSO: 11 Worst Performing Stocks in S&P 500 So Far in 2025 and 15 Stocks ChatGPT Predicts Could Make You Wealthy in 10 Years.

A New York-based investment banking firm recently projected positive but muted returns for 2025. However, it added that the continued adoption of AI could lead to a strong rally. The company also pointed out how bull markets have historically produced mediocre results in the third year, although not usually negative.

Trends over the past decades also show that sustained high returns are uncommon. Following the strong back-to-back performance in the 1920s, markets went down sharply in 1929, marking the beginning of the Great Depression. Then, after recovering in 1935 and 1936, they took a giant step back again a year later.

Over the years, many investors have turned toward ChatGPT for investment advice, including how the markets would respond to news headlines, statements from the Federal Reserve, or any other event that could cause share price movements. A 2023 survey revealed that about 53% of the Millennials, 50% of Gen Z, and 46% of  Gen X respondents had used the AI chatbot for investing advice.

In contrast, older Americans were found to be more skeptical of the recommendations, with just 25% of the Baby Boomers using ChatGPT to buy stocks. Collectively, about 47% of all survey respondents had used the platform for stock recommendations. Among them, 69% stated they would consider using ChatGPT for investment advice in the future as well.

While the reliability of ChatGPT to provide accurate and up-to-date information has repeatedly come under question from most financial analysts, a professor at the University of Florida in 2023 claimed that the chatbot may be able to predict stock movements. Alejandro Lopez-Lira used the platform to parse negative and positive headlines for stocks and predict returns for the following day, and was surprised to find how good the results were.

Whether or not tools like ChatGPT are effective in stock recommendations remains a debate. However, they can be useful for new investors looking for financial education and researching companies they want to invest in.

Our Methodology

For this list, we prompted ChatGPT to recommend the top 12 stocks based on its assessment of historical trends and the current market situation. The stocks are ranked in this article in the same order as provided by ChatGPT. The platform said it based its rankings on several factors, including long-term past performance, innovation capacity, economic resilience, and current macroeconomic trends.

For perspective, we have also shared the hedge fund sentiment toward each stock, based on Insider Monkey’s database of over 1,000 prominent hedge funds as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 234

Alphabet Inc. (NASDAQ:GOOGL) owns several notable platforms such as Google Search, Google Maps, Gmail, and YouTube. The company is also known for pioneering work and research in cloud computing, quantum computing, and artificial intelligence.

On March 18, the company announced that Google had signed an agreement to acquire Wiz, Inc., a leading cloud security platform, for $32 billion in an all-cash transaction. After the completion of the acquisition, Wiz will join Google Cloud and help Alphabet Inc. (NASDAQ:GOOGL) accelerate two growing trends in artificial intelligence: improved cloud security and multicloud.

On April 24, Alphabet Inc. (NASDAQ:GOOGL) declared impressive financial results for the first quarter of fiscal 2025. It reported consolidated revenues of $90.2 billion, up 12% year-over-year, driven by robust momentum across the business. Total operating income rose by 20%, while net income surged 46% to $34.5 billion. Earnings per share increased 49% from the prior year to $2.81, smashing estimates of $2.01 per share.

Investors were also buoyed by Google’s better-than-expected 8.5% increase in advertising revenue, which signaled that Alphabet Inc. (NASDAQ:GOOGL)’s bold bets on artificial intelligence were paying off. It also comes as a welcome development amid concerns that a decline in ad spending due to ongoing trade wars could dent the digital advertisements market.

Despite plunging by 13.35% this year, Alphabet Inc. (NASDAQ:GOOGL) is among the top picks in ChatGPT’s stock advice due to its dominant position in digital advertising, coupled with rapid expansion in AI and cloud computing.

In December last year, the company launched its latest quantum computing chip, called Willow, which has been described as a major breakthrough by industry experts. The chip is expected to be useful for large-scale simulation and code-breaking when quantum computing matures. The technology will help reduce errors exponentially as it scales up using more qubits.

Overall, GOOGL ranks 3rd among ChatGPT Stock Advice: Top 12 Stock Recommendations. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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