Alphabet Inc. (GOOGL): Google Cloud and Optimum Expand Gen AI to Elevate Customer Experience

We recently published a list of 10 AI Stocks Getting Wall Street’s Attention Right Now. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against other AI stocks that are getting Wall Street’s attention right now.

Investors in the artificial intelligence trade have been frantic ever since the tariff frenzy started. Particularly on April 2, dubbed Liberation Day by President Donald Trump, the administration announced sweeping tariffs that led to significant market volatility and a sharp downturn in stock indices.

While the President may strive to make the United States the “world capital” of artificial intelligence, the aggressive trade and tariff moves that have since followed have been threatening the crucial technology and weakening competition with China.

Executives and experts in AI and data center construction have been worried about how trade levies would significantly increase the cost of constructing, equipping, and operating the data centers that will, in turn, power AI development.

READ NEXT: 10 AI Stocks in the News Today and 10 AI Stocks in the Spotlight This Week.

Fast forward to earnings reports from some of the Big Tech, and it can be noted how investors have been worried more than necessary about the AI trade. Meta and Microsoft, in particular, reported strong quarterly results that demonstrated how artificial intelligence progress won’t necessarily slow amid economic turmoil.

“Few stocks are truly immune to Trump tariffs [and] trade war, but AI is a lot less impacted than investors currently believe. We’re early in a very steep growth curve right now, and that goes for AI infrastructure.”

-Jed Ellerbroek, portfolio manager at Argent Capital Management.

What happens next to AI stocks largely depends on what’s next for tariffs. If it’s better than expected, these and other AI stocks may climb and lift valuations. On the other hand, if tariffs seem high, these stocks could fall further.

Nevertheless, strong companies, particularly the likes of Nvidia and Palantir, are likely to win over the longer term due to their smart innovations. According to Wells Fargo’s Christopher Harvey, it may be time for investors to reenter the trade.

“The group’s risk/reward today is much more attractive than a year ago. We remain in a durable AI investment super cycle.”

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is 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) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On May 6, Optimum, an American telecommunications brand, and Google Cloud announced an expanded collaboration that will help develop an intelligent and personalized customer experience across web interactions, mobile apps, call centers, and in-person kiosks. Optimum will leverage Google Cloud’s generative AI (gen AI) technology – including Google’s Customer Engagement Suite, Vertex AI platform, and Gemini models – to boost customer service and develop stronger relationships with customers.

By building human-centered tools with Google Cloud’s gen AI technology and Optimum’s virtual AI agent, AVA, Optimum will help improve customer interactions and make the job easier for employees by offering personalized support, offering more understanding interactions, creating seamless experiences, and using AI-driven insights to enhance service quality.

“Customer service is one of the most critical differentiators for telecommunications companies today. By using our AI-powered solutions, Optimum is ensuring that its customers receive the support they need, when and where they need it, making interactions more intuitive, and ultimately, more satisfying. We’re pleased to help Optimum continue to build upon its incredible customer experience.”

-Oliver Parker, vice president, Global Generative AI GTM, Google Cloud.

Overall, GOOGL ranks 2nd on our list of AI stocks that are getting Wall Street’s attention right now. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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