Alphabet on the Rise: AI Stocks in October

Many investors are currently focused on a highly anticipated list of the most sought-after AI stocks for October, with Alphabet Inc. (NASDAQ:GOOG) ranking fifth and warranting closer scrutiny. Tom Lee, co-founder of Fundstrat, recently explained his optimistic market outlook in a CNBC interview. He predicts that the S&P 500 could close "well above" 5,700 points by the end of the year. Lee advises "buying risks directly," as he expects further upside potential for stocks following the upcoming elections. The selection of ten AI stocks making headlines is complemented by the number of hedge fund investors. The interest in heavily demanded hedge fund stocks is straightforward: research shows that market advantages can be gained by mimicking the top stock selections of the best hedge funds. The strategy of the quarterly newsletter focuses on selecting 14 small-cap and large-cap stocks each quarter and has achieved a 275% return since May 2014. Pivotal Research recently rated Alphabet as a "buy," highlighting its strong competitive position and large moat around its core business. Despite ongoing antitrust proceedings, these are no longer seen as significant risks to the stock price. The firm's forecasts are conservative regarding search engine revenues, but strong growth is expected in the cloud segment and untapped potential in the company's leaps in innovation. Despite omnipresent competition from Microsoft with Bing, Google remains the clear dominator in the search engine segment with a market share of over 91%. Revenue surges in Google Cloud and YouTube Ads are promising indicators of future growth. In the second quarter, cloud revenue rose an impressive 28.8% to $10.35 billion, surpassing all analysts' expectations. Alphabet Inc. is well on its way to achieving $100 billion in revenue from YouTube and Google Cloud by the end of 2024. Overall, Alphabet Inc. remains a significant player on Insider Monkey's list of the 10 Trending AI Stocks in October. Although great opportunities in the AI field are seen at Alphabet, certain more reasonably priced AI stocks show even more attractive potential for quick returns.