Alphabet (GOOG): One of the Biggest Beneficiaries of the AI Transition

3 weeks ago 12

Soumya Eswaran

Fri, February 6, 2026 astatine 7:41 AM CST 3 min read

Pelican Bay Capital Management (PBCM), an concern absorption company, released its fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. PBCM Concentrated Value Strategy returned 8.5% successful the quarter, compared to a 3.8% instrumentality for the Russell 1000 Value Index. The robust show of AI-related stocks and commodities vulnerability drove the Strategy’s show successful the quarter. For the afloat year, the Strategy returned 20.6% compared to 15.9% for the Index. The steadfast seeks to put successful high-quality companies with a beardown equilibrium sheet. Please reappraisal the Fund’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, PBCM highlighted stocks similar Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the genitor institution of Google, offers assorted platforms and services operating done Google Services, Google Cloud, and Other Bets segments, and is simply a important contributor to the strategy’s show successful the quarter. On February 5, 2026, Alphabet Inc. (NASDAQ:GOOG) banal closed astatine $331.33 per stock with a marketplace capitalization of $4.008 trillion. One-month instrumentality of Alphabet Inc. (NASDAQ:GOOG) was 0.67%, and its shares gained 77.05% of their worth implicit the past 52 weeks.

PBCM stated the pursuing regarding Alphabet Inc. (NASDAQ:GOOG) successful its 4th fourth 2025 capitalist letter:

"Alphabet Inc. (NASDAQ:GOOG) besides landed connected the database of apical 5 contributors for a 2nd consecutive quarter. The institution appears to beryllium 1 of the biggest beneficiaries of the AI transition, and their Gemini Large Language Model (LLM) has established itself arsenic a starring LLM on with Claude and ChatGPT. Perception has travel a agelong mode from erstwhile we archetypal purchased GOOG successful March 2023 erstwhile the prevailing statement was that GOOG missed the AI roar and its monopoly connected hunt would deteriorate rapidly.

Alphabet Inc. (NASDAQ:GOOG) is successful the 7th presumption connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge money portfolios held Alphabet Inc. (NASDAQ:GOOG) astatine the extremity of the 3rd 4th which was 178 successful the erstwhile quarter. In 2025, Alphabet Inc. (NASDAQ: GOOG) achieved its first-ever $400 cardinal yearly revenue. While we admit the imaginable of Alphabet Inc. (NASDAQ:GOOG) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.