Alphabet Inc. (GOOGL) leverages Gemini AI and Waymo growth to drive the next wave of innovation

We recently released a list 10 AI stocks will soar. In this article, we will explore the position of Alphabet Inc. (NASDAQ:GOOGL) that conflicts with other AI stocks that will soar.

AI (artificial intelligence) is more than just a buzzword, it has become a part of our daily lives, from the applications we use to how businesses work. For investors, this means opportunity. As AI continues to grow, some companies are leading the allegation and show the real potential for long-term gains. Whether you want to diversify your portfolio or leverage the future of technology, this article will guide you through some of the best AI stocks worth a look. Over the past few years, AI stocks have been incredible, especially in 2024, as AI applications develop. The current weakness of AI stocks caused by geopolitical tensions could be a good opportunity to load AI stocks.

In an interview with ARK Invest's CEO and CIO CNBC, Cathie Wood highlighted her bullishness on the AI sector, despite the recent weaknesses of these stocks. According to Wood, AI has a huge runway. She compared the current AI location to the internet in the early 1990s. Wood is optimistic about the application of robots and humanoid robots in the short term. But, according to Wood, the most underrated application of AI is healthcare, because AI will accelerate the cure of disease. In the medical applications of AI, Cathie Wood is particularly optimistic about sequencing technology, which is used to read DNA. AI is a great application in sequencing because it helps analyze, interpret and act on this genetic data faster and more accurately than traditional methods.

One of the segments in AI is now very hot. Generative AI creates custom answers for users based on actual basic data. The AI General creates a massive investment cycle of over $200 billion each year, led by the “Magnificent 7”. The technology behemoth is competing fiercely with the leadership of the AI generation. Meanwhile, the upcoming AI theme centers around the focus of large language models (LLM). Morgan Stanley said the leading companies behind state-of-the-art LLM are prioritizing high-performance chips and top-notch software to deliver AI solutions that are critical to businesses and consumers. While initial LLM use cases mainly include content creation, summary, and classification, industry leaders believe that the most important opportunity lies in applying AI reasoning to enterprise data.

To compile a soaring list of AI stocks, we reviewed AI ETFs to compile the preliminary inventory list and then selected stocks with the highest overhead potential based on Wall Street analysts’ average price targets. From the fourth quarter of 2024, we also mentioned hedge fund sentiment around each stock.

Note: All data were recorded on April 21, 2025.

At Insider Monkey, we are addicted to the stocks accumulated by hedge funds. The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).

Alphabet Inc. (GOOGL) leverages Gemini AI and Waymo growth to drive the next wave of innovation

The user's hand enters a search query into the Google search box and emphasizes the company's search function.

Upward potential: 25.26%

Number of hedge fund holders: 234

Google's parent company, Alphabet Inc. (NASDAQ:GOOGL), operates through Google Services, Google Cloud and other experimental businesses called “Other Bets.” The company focuses on supporting innovation through centralized AI research, making information universally accessible. Its powerful Gemini AI model enhances products like YouTube, Gmail, and Maps by understanding and combining text, images, and more. Google Cloud can help businesses leverage the growth of AI. Alphabet's AI arm DeepMind also made scientific breakthroughs like Alphafold, which solved a long-standing protein folding problem, showing a broad AI commitment to letters.

Alphabet Inc. (NASDAQ:GOOGL)'s Q1 2025 results show that its business growth is strong driven by AI advances. Google Cloud revenue reached $12.3 billion, up 28%, while YouTube advertising revenue rose 10%, to $8.9 billion. The company's AI model, Gemini 2.5, is powering products such as search and cloud, driving a lot of user engagement and developer adoption. Waymo is expanding rapidly, with 250,000 paid trips per week. Alphabet is investing heavily in AI infrastructure, including its customized Ironwood TPUs, and continues to innovate with AI-powered tools and services. According to the company, AI-powered campaigns improved performance in Q1, while businesses using Alphabet demand increased 26% per dollar spend.

Overall, GOOGL Ranked fourth On our list of AI stocks that will soar. Although we acknowledge the potential of GOOGL is an investment, our belief is that AI stocks provide high returns in a shorter time frame and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than GOOGL but have less than 5 times its earnings, please check out our report Cheapest AI stocks.

Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.

Disclosure: None. This article was originally published in Internal monkey.