Alphabet wins top spot in AI infrastructure race with hedge funds backing

Alphabet Inc. has earned its place among the 11 best AI infrastructure stocks, attracting significant attention from major hedge funds, according to Yahoo Finance. The company received a strong endorsement on Nov. 13,  when analyst John Blackledge from TD Cowen maintained his Buy rating with a $335 price target. His optimism stems from Waymo's exceptional performance in the autonomous vehicle market.

The self-driving service has crossed a major milestone by completing over one million monthly rides in California while steadily expanding into new areas. The company has ambitious plans to launch operations in seven additional cities by 2026, with a goal of reaching one million weekly paid rides by year-end 2026, as reported by Yahoo Finance.

Revolutionary freeway services launch

Waymo has achieved another groundbreaking milestone by introducing freeway rides across major cities, including San Francisco, Los Angeles, and Phoenix, Nasdaq reports. This development represents the first time passengers in the United States can book completely driverless highway trips, placing Waymo ahead of competitors like Tesla in the robotaxi race.

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The service has also expanded to San Jose with convenient airport pickups. Industry analysts estimate that Waymo currently generates hundreds of millions of dollars annually, with projections suggesting revenue could reach $2-5 billion as operations expand, according to Nasdaq. The robotaxi market itself is expected to exceed $100 billion by 2030.

Strong financial performance supports growth

Alphabet delivered impressive third-quarter results on Oct. 29, posting $102.3 billion in revenue, marking a 16% year-over-year increase, SSB Crack reports. Earnings per share jumped 35% to $2.87, driven largely by Google Cloud's outstanding performance, which generated $15.2 billion in revenue with 34% growth.

The cloud division saw AI-related services surge over 200%, with profit margins expanding from 17.1% to 23.7%. Facing increased demand for AI infrastructure, Alphabet raised its full-year 2025 capital expenditure guidance from $85 billion to $91-93 billion, with further increases expected in 2026, as highlighted by SSB Crack.