Alphabet Inc. (GOOGL): Navigating AI Dreams Amid Regulatory Storms

We recently released a list of Top 10 Artificial Intelligence Stocks Gaining Attention This Week In this piece, we will examine how Alphabet Inc. (NASDAQ:GOOGL) measures up against the leading ten AI-focused stocks grabbing attention this week.

Morgan Stanley, an investment company, asserts that electricity demand will remain robust irrespective of a potential recession triggered by President Trump’s tariff strategies. The rationale behind this prediction hinges on the substantial energy requirements of data centers, which ensure consistent consumption even during economic contractions. Additionally, advancements in efficiency by companies like Ant Group and DeepSeek contribute to sustaining demand levels. Although brief dips might occur within specific sectors such as industry due to tariffs, relocating manufacturing operations back to the U.S. could mitigate these effects effectively.

“We believe power demand trends are more durable than in prior cycles, in part due to the inelasticity of data center demand. Industrial demand could decline in the near term, but reshoring of manufacturing is a long-term tailwind.”

Analysts headed by Andrew Percoco.

READ ALSO: 10 Artificial Intelligence Stocks Soaring Due to Recent Reports Today and 10 Artificial Intelligence Stocks Worth Considering Today .

A comparable analysis by a Bloomberg The report predicts that electricity consumption by U.S. data centers might increase between 20% and 40% in 2025, with robust double-digit growth expected to continue through 2026-30.

Although Morgan Stanley recognizes that swift policy shifts could significantly impact major capital expenditures, it also predicts that energy usage driven by artificial intelligence will increase tenfold by 2028.

Considering this, we should not underestimate the potential 'shock' in demand in the short term. Such an event might result in reduced order increases for certain businesses.

Historical evidence indicates that energy stocks have proven resistant even when the economy declines. The company pointed out that from 1960 onwards, consumption dropped by merely an average of 0.2 percent during these times.

Utility stocks tend to perform well during recessions due to their defensive characteristics,

That said, it is optimistic about strong spending on AI infrastructure from tech giants such as Meta, Amazon, and Alphabet. This is because hyperscalers want to have a lead in artificial intelligence and also because they have large product pipelines that need GPUs.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

Why do we focus on the stocks that hedge funds amass? It's straightforward: our analysis indicates that mimicking the top choices from leading hedge funds allows us to surpass the market performance. Each quarter, our monthly bulletin recommends 14 small-cap and large-cap stocks, delivering a return of 373.4% since May 2014, which significantly outperforms its benchmark by 218 percentage points. see more details here ).

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Alphabet Inc. (NASDAQ: GOOGL )

Number of Hedge Fund Owners: 234

Alphabet Inc., which trades under the NASDAQ ticker symbol GOOG, is an extensive American tech conglomerate that fully owns Google along with several other enterprises. As of April 16th, Brian White from Monness has kept his Hold recommendation for this stock. The analysts at Monness have adopted a wary stance towards Alphabet Inc., attributing their caution to tough economic conditions, ongoing antitrust challenges, and substantial planned investments by the corporation. Nonetheless, they acknowledge potential advantages stemming from developments in areas like online ads, cloud computing, and artificial intelligence innovations. Additionally, White anticipates a deceleration in Alphabet’s expansion rate.

Overall, GOOGL ranks 3rd In our compilation of the top 10 highlighted AI stocks for this week, we recognize the appeal of investing in GOOGL. However, we feel strongly that certain AI stocks offer better prospects for substantial gains over a shorter period. One particular AI stock has seen growth since the start of 2025, whereas many well-known AI stocks have declined by approximately 25%. Should you be seeking an AI stock with stronger potential than GOOGL that also comes with a price-to-earnings ratio under five, consider reviewing our detailed analysis available in our latest report. cheapest AI stock .

READ NEXT: 20 Top AI Stocks You Should Consider Buying Today and 30 Top Stocks to Purchase Currently as Recommended by Millionaires .

Disclosure: None. This piece was initially published at Insider Monkey .