Is Alphabet Inc. (NASDAQ:GOOGL) the Best NASDAQ Stock to Buy So Far in 2025?

From Yahoo Finance: 2025-04-16 09:42:00

Alphabet Inc. (NASDAQ:GOOGL) stands out as a top NASDAQ stock to buy in 2025, with 234 hedge fund holders. Analysts are cautious due to potential AI-related threats to Google’s search business. However, the company’s Google Cloud segment is thriving, with a 30% YoY increase in Q4 2024. Alphabet Inc. ranks 4th on the list of best NASDAQ stocks for 2025, showing strong AI potential.

Wedbush analyst Dan Ives predicts a 15% to 20% demand reduction if current tariffs remain, leading to investor anxiety similar to the March 2020 crash. He advises focusing on tariff adjustments, impact on consumer-focused companies, and potential demand destruction. Tech companies may pass on tariff costs to consumers, leading to margin erosion and sales declines.

A compiled list of top NASDAQ stocks for 2025 reveals 13 popular picks among elite hedge funds. The strategy of imitating hedge fund stock picks has outperformed the market significantly. Investors are advised to look for companies with strong long-term potential as earnings may normalize in 2025 and 2026. Defensive sectors like defense contractors are also cautioned about potential tariff impact.

Analysts reaffirm an Equal Weight rating on Alphabet Inc. (NASDAQ:GOOGL) with a lowered price target. Despite concerns about AI-related risks to Google’s search business, the company’s Google Cloud segment is thriving. The AI infrastructure and GenAI solutions are driving adoption, with a 30% YoY increase in the Cloud segment’s revenue in Q4 2024.

Alphabet Inc. (NASDAQ:GOOGL) ranks 4th on the list of best NASDAQ stocks for 2025, showcasing strong AI potential. Despite concerns about AI threats to Google’s search business, the company’s Google Cloud segment is thriving. The company’s 6th-gen TPU, Trillium, and AI-developed platform, Vertex AI, are driving growth. An AI stock with promising returns may offer a better opportunity than GOOGL.



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