We recently compiled Goldman Sachs’ list of 10 AI stocks to watch. In this article, we’ll take a look at how Alphabet Inc. (NASDAQ:GOOG) stands compared to other hot AI stocks.
The Goldman Sachs Communacopia + Technology Conference 2024, held earlier this month, provided investors with some important updates on the technology sector, with a particular focus on innovation and financial growth across growth industries. I did. Key discussions revolved around energy-efficient computing, artificial intelligence (AI), and advanced semiconductor technology, signaling important changes in technology and communications. At this conference, companies active in the technology industry will outline their strategic perspectives and drive semiconductor growth as industries such as AI, IoT, robotics, and self-driving cars drive trillion-dollar transformations. We highlighted the role of energy-efficient computing above.
To learn more about these trends, visit 33 Most Important AI Companies to Watch and 20 Industrial Stocks Already Riding the AI Wave.
One of the highlights of the conference was the appearance of NVIDIA CEO Jensen Huang, who appeared alongside Goldman Sachs CEO David Solomon to discuss the AI industry in detail. Asked about recent U.S. restrictions on chip exports to China and rising geopolitical tensions that could negatively impact supply, Huang, a Taiwan-based company that supplies advanced AI chips to NVIDIA, said It outlined that its company is confident if its major supplier, Taiwan Semiconductor Manufacturing Company, is compromised. , the supply of chips will continue, even if it’s not as good. Huang emphasized that NVIDIA has enough intellectual property to shift chip production from one factory to another if necessary.
NVIDIA has lost more than 15% of its market capitalization since releasing third-quarter guidance numbers that raised concerns about slowing profit growth. In particular, there were concerns about the concentration of hyperscalers in NVIDIA’s business model, with four large customers accounting for nearly half of the company’s revenue related to the AI boom. Following Hwang’s conference appearance, Goldman Sachs semiconductor analyst Toshiya Hari reiterated his “buy” rating on the company’s stock, citing very strong demand for accelerated computing and He backed the company to increase sales in the coming months as it expands into sovereigns. state.
To learn more about these trends, visit BlackRock’s 30 Most Important AI Stocks and the AI News You Can’t Miss.
our methodology
In this article, we selected AI stocks by scouring the proceedings of Goldman Sachs’ 2024 Communacopia and Technology Conference. These stocks are also popular among hedge funds. Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
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Alphabet Inc. (NASDAQ:GOOG)
Number of hedge fund holders: 165
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and operates the Internet search engine Google. Google Cloud CEO Thomas Kurian spoke at the Goldman Sachs 2024 Communacopia and Technology Conference earlier this month, highlighting how the company has been ahead of the pack in building AI infrastructure over the past decade. I pointed out how far ahead I was. Mr. Kurian emphasized that these investments are now beginning to bear fruit. For example, it revealed that 90% of AI unicorns run on cloud services provided by Google for training and inference. 60% of all AI-funded startups have used AI infrastructure developed by Google for training and inference.
Kurian, who was at software company Oracle before joining Alphabet Inc. (NASDAQ:GOOG), added that traditional companies are also now building both high-performance and generative AI models on Google Cloud. Kurian cited the example of automaker Ford Motor Company, which uses Google’s deep learning technology to build wind tunnel simulations and virtual wind tunnel simulations that replace a traditional approach called computational fluid dynamics. mentioned.
Overall, GOOG ranks No. 4 among hot AI stocks to buy, according to Goldman Sachs. While we appreciate GOOG’s potential as an investment, we believe some AI stocks have a better chance of delivering higher returns over shorter time periods. If you’re looking for AI stocks that are more promising than GOOG but trade at less than 5x earnings, check out our report on the cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider Monkey.
