We recently published a list of 10 Best NASDAQ Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against other best NASDAQ stocks to buy according to billionaires.

The latest market data shows that the US economy contracted at an annualized rate of 0.3% during the first quarter of 2025. This was a rapid reversal from the 2.4% growth in the last quarter of 2024. The further segregation of the data shows that tariff uncertainty was one of the key contributing factors toward the slowdown, as net exports dropped 4.8%. According to a recent report by CNBC, traders highlighted that the imports were skewed up 41% last quarter as a preparatory move by companies to get ahead of the tariff situation. In this backdrop, the NASDAQ slipped another 0.09% on May 1, to end at 17,446.34.

On April 30, Fundstrat’s Tom Lee joined CNBC to talk about the outlook of the stock market amidst the tariff situation. He noted that the stock market is currently trying to figure out the trajectory of the economy as it is clear that the economic data for the next 3 quarters will be polluted by the tariffs and other distortions that follow. Lee highlighted that there are two questions that the market is trying to figure out. The first question is whether this is a dip and noise for 2025 only and the market exists in better shape as 2026 approaches. If this is the case then Lee believes that Equities have already made their lows with the S&P 500 at 4,835 on April 7. This will be the better-case scenario of all the possible outcomes. However, if the market feels that the uncertainty is dragging into a few more quarters in 2025 then that could be harmful for the stock market.

CNBC’s Steve Liesman added to Tom Lee’s comments by mentioning that the current stock market is the President’s market. He highlighted that when President Trump took charge the stock market rallied, however, the later policies hampered the sentiment and took the stock market down with it. Liseman further elaborated that before all these policy uncertainties the forecasts for GDP in 2025 were at 2% growth each quarter. However, now the first quarter ended up at -0.3% with an expectation of 1.6% growth next quarter. Liseman concluded that the market might see the economy bouncing back in the next quarter allowing investors to make sense of the outlook.

Amidst this uncertainty, Lee has emphasized the importance of staying invested in times of volatility to reap the benefits. We have covered more analysis from Tom Lee in 10 Best Growth Stocks to Buy According to Billionaires.

Our Methodology

To curate the list of the 10 best NASDAQ stocks to buy according to billionaires, we used the Finviz stock screener and Insider Monkey’s billionaire database. Using the screener we aggregated a list of stocks trading on NASDAQ. After sorting the list by market cap, we checked the number of billionaires holding each stock and ranked the stocks in ascending order of the number of billionaire investors. We have also added the total value of billionaire holdings and the hedge fund sentiment around each stock.

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).

A user's hands typing a search query into a Google Search box, emphasizing the company's search capabilities.

Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Funds: 234

Number of Billionaire Investors: 33

Value of Billionaire Holdings: $22,418,594,670

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate that is known for its Google search engine and related services. The company operates through three main business segments including the Google Services, Google Cloud, and Other Bets segments.

On April 25, BMO Capital analyst Brian Pitz reiterated their bullish stance on the stock. The analyst noted that the company’s search segment has shown growth, notably the FX Neutral Search increase of 12%, exceeding company forecasts. The analyst also highlighted that the AI overviews which were introduced recently are being adopted quickly. This has also resulted in 50% more users since October. In addition, the cloud platform is also experiencing high demand with a growth rate of 28%, which is in alignment with Alphabet Inc.’s (NASDAQ:GOOGL) expectations.

During the fiscal first quarter of 2025, Alphabet Inc. (NASDAQ:GOOGL) grew its revenue by 12% year-over-year to reach $90.2 billion. The Google Services segment was the largest contributor with $77.3 billion in revenue, reflecting a 10% increase. However, the Google Cloud segment experienced the fastest growth with revenue growing 28% year-over-year. Alphabet Inc. (NASDAQ:GOOGL) is one of the best NASDAQ stocks to buy according to billionaires.

Wedgewood Partners stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) also detracted from performance during the quarter, despite of +13% growth in its core search business and over +20% growth in segment income for Google Services. The Company’s search results are beginning to beneit from the addition of “GenAI” (generative arti icial intelligence) responses being added, which monetize at a nearly similar rate as traditional search results do. Alphabet’s Google subsidiary serves billions of users per day, so it is no mean feat to be able to offer GenAI to users free of charge. Google has long been at the forefront of AI hardware and software R&D, irst rolling out its Tensor Processing Units (TPU) to run machine-learning operations across massive datasets almost a decade ago. The Company should be able to continue to drive growth thanks to these large long-term investments in AI and other technical software and infrastructure.”

Overall, GOOGL ranks 4th on our list of best NASDAQ stocks to buy according to billionaires. While we acknowledge the potential of GOOGL to grow, our conviction lies in the belief that 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.