Hedge Fund Favorites Outperform the Market, with Tesla Joining the Ranks for the First Time in Three Years.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 21 2025
0mins
Should l Buy GOOGL?
Source: MarketWatch
Hedge Fund Performance: Hedge fund favorite stocks have outperformed the broader market in 2023, with a notable return of 15% compared to 11% for the S&P 500.
Tesla's Comeback: For the first time since 2022, Tesla has made it onto the list of favored stocks by hedge funds, according to an analysis by Goldman Sachs.
Goldman Sachs Analysis: The findings are based on 13-F filings submitted to the Securities and Exchange Commission, highlighting the performance of what Goldman refers to as its “hedge fund VIP” list.
ETF Wrapper: The "hedge fund VIP" list is available through an ETF called GVIP, which tracks these high-performing stocks.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOGL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 303.580
Low
305.00
Averages
374.25
High
400.00
Current: 303.580
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Administration Partners with Tech Giants on Electricity Cost Protection Agreement
- Ratepayer Protection Commitment: The Trump administration has signed a voluntary agreement with major tech companies to build or purchase the electricity needed for rapidly expanding data centers, covering the infrastructure costs to connect to the grid, thereby alleviating consumer electricity burdens.
- Surge in Electricity Demand: The U.S. brought online a record 10 gigawatts of new data center capacity in 2025, with electricity demand increasing by 2.8% year-over-year, marking the fastest growth rate in nearly 20 years, highlighting the significant impact of AI infrastructure expansion on the power market.
- Lack of Enforcement Power: Despite the agreement, experts indicate that the pledge lacks legal force, as state regulators ultimately decide on electricity pricing structures, meaning the White House cannot enforce new policies.
- Positive Industry Response: Companies like Amazon and Microsoft have indicated they will cover the costs of their expanding electricity needs, reflecting the industry's recognition of public concerns regarding potential increases in household electricity costs due to AI infrastructure.
See More
Marvell Stock: Increased AI Data-Center Investment May Enhance Earnings
Financial Boost: Marvell Technology's fourth-quarter financials are expected to improve due to ongoing demand for hardware that supports artificial intelligence.
Customer Demand: The increasing need for AI-related technology is driving customer purchases, positively impacting Marvell's revenue.
See More
Anthropic Resumes Negotiations with U.S. Defense Department
- Negotiation Resumption: Anthropic CEO Dario Amodei is back at the negotiating table with the U.S. Department of Defense after talks broke down last Friday, aiming to finalize an agreement on military access to its AI tools, which could significantly impact future defense contracts for the company.
- Contract Dispute: The Pentagon previously utilized Anthropic's Claude models through a $200 million contract, but during negotiations, the Defense Department demanded the removal of a specific clause regarding 'analysis of bulk acquired data,' a request that sparked strong opposition from Amodei, highlighting major disagreements over usage terms.
- Market Reaction: Following the breakdown of negotiations with the Defense Department, Anthropic experienced a surge in app downloads, while OpenAI's ChatGPT reportedly faced a wave of uninstalls, reflecting market perceptions of the differing implications of the two companies' defense collaborations.
- Industry Concerns: A tech industry group expressed concern over the Defense Secretary's designation of Anthropic as a supply chain risk, arguing that such a move could adversely affect U.S. companies and intensify discussions around AI safety and regulation.
See More
Broadcom Reports Strong Q1 Results Amid Software Growth Slowdown
- Software Segment Slowdown: Broadcom's infrastructure software segment reported a mere 1% revenue growth in Q1 2026, sharply down from 19.2% in Q4 2025 and 46.7% in Q1 2025, indicating diminishing returns from its major acquisition of VMware, which could impact future market competitiveness.
- Strong Overall Performance: The company achieved a 29% increase in total revenue for Q1, reaching $19.31 billion, surpassing estimates of $19.13 billion, while the Q2 revenue forecast of approximately $22 billion reflects robust performance in its AI semiconductor business and key customer partnerships.
- AI Demand Boosts Outlook: Despite the slowdown in the software segment, management anticipates a 9% increase in Q2 software sales to $7.2 billion, with the CEO asserting that the growth in AI will drive demand for VMware software, highlighting its critical role in modern data centers.
- Share Buyback Program: Broadcom announced a new $10 billion share repurchase program aimed at enhancing shareholder value, and although its stock has declined 8.3% year-to-date, shares rose 5.3% in after-market trading following the release of strong earnings.
See More
Broadcom Reports Strong Earnings, Optimistic Outlook for AI Chip Business
- Strong Earnings Report: Broadcom's fiscal Q1 2026 revenue reached $19.31 billion, surpassing the $19.18 billion consensus forecast with a 29% year-over-year increase, indicating robust growth potential in the AI chip sector.
- Improved Profitability: Adjusted earnings per share (EPS) rose 28% to $2.05, exceeding expectations of $2.03, while adjusted EBITDA grew 30% to $13.13 billion, further boosting investor confidence.
- Optimistic Future Outlook: Broadcom projects AI chip revenue to exceed $100 billion by 2027, having secured the necessary supply chain, reflecting strong confidence in future demand, particularly with a positive relationship with OpenAI.
- Shareholder Return Plan: The company announced a newly authorized $10 billion share repurchase program, which, combined with strong financial performance and an optimistic outlook, enhances market confidence in Broadcom's stock.
See More
Broadcom Projects AI Chip Revenue Exceeding $100 Billion Next Year
- Surge in AI Revenue: Broadcom reported a more than 100% year-over-year increase in AI revenue for Q1, reaching $8.4 billion, demonstrating the company's robust performance amid the AI boom, which is expected to drive sustained future growth.
- Strong Earnings Guidance: The company achieved a 29% increase in total sales to $19.3 billion in Q1, surpassing analyst expectations, with CEO Hock Tan projecting AI semiconductor revenue of $10.2 billion for the current quarter, further solidifying its market leadership.
- Rising Customer Demand: As large customers increasingly require custom silicon, Broadcom has secured the supply chain necessary to meet its 2027 sales targets, indicating strategic readiness to fulfill market demands.
- Key Customer Collaborations: Broadcom is assisting six major clients, including Google, Meta, Anthropic, and OpenAI, in chip design, which is expected to accelerate the next phase of custom AI deployment and further drive company growth.
See More
Trump Administration Partners with Tech Giants on Electricity Cost Protection Agreement
- Ratepayer Protection Commitment: The Trump administration has signed a voluntary agreement with major tech companies to build or purchase the electricity needed for rapidly expanding data centers, covering the infrastructure costs to connect to the grid, thereby alleviating consumer electricity burdens.
- Surge in Electricity Demand: The U.S. brought online a record 10 gigawatts of new data center capacity in 2025, with electricity demand increasing by 2.8% year-over-year, marking the fastest growth rate in nearly 20 years, highlighting the significant impact of AI infrastructure expansion on the power market.
- Lack of Enforcement Power: Despite the agreement, experts indicate that the pledge lacks legal force, as state regulators ultimately decide on electricity pricing structures, meaning the White House cannot enforce new policies.
- Positive Industry Response: Companies like Amazon and Microsoft have indicated they will cover the costs of their expanding electricity needs, reflecting the industry's recognition of public concerns regarding potential increases in household electricity costs due to AI infrastructure.
See More
Marvell Stock: Increased AI Data-Center Investment May Enhance Earnings
Financial Boost: Marvell Technology's fourth-quarter financials are expected to improve due to ongoing demand for hardware that supports artificial intelligence.
Customer Demand: The increasing need for AI-related technology is driving customer purchases, positively impacting Marvell's revenue.
See More
Anthropic Resumes Negotiations with U.S. Defense Department
- Negotiation Resumption: Anthropic CEO Dario Amodei is back at the negotiating table with the U.S. Department of Defense after talks broke down last Friday, aiming to finalize an agreement on military access to its AI tools, which could significantly impact future defense contracts for the company.
- Contract Dispute: The Pentagon previously utilized Anthropic's Claude models through a $200 million contract, but during negotiations, the Defense Department demanded the removal of a specific clause regarding 'analysis of bulk acquired data,' a request that sparked strong opposition from Amodei, highlighting major disagreements over usage terms.
- Market Reaction: Following the breakdown of negotiations with the Defense Department, Anthropic experienced a surge in app downloads, while OpenAI's ChatGPT reportedly faced a wave of uninstalls, reflecting market perceptions of the differing implications of the two companies' defense collaborations.
- Industry Concerns: A tech industry group expressed concern over the Defense Secretary's designation of Anthropic as a supply chain risk, arguing that such a move could adversely affect U.S. companies and intensify discussions around AI safety and regulation.
See More
Broadcom Reports Strong Q1 Results Amid Software Growth Slowdown
- Software Segment Slowdown: Broadcom's infrastructure software segment reported a mere 1% revenue growth in Q1 2026, sharply down from 19.2% in Q4 2025 and 46.7% in Q1 2025, indicating diminishing returns from its major acquisition of VMware, which could impact future market competitiveness.
- Strong Overall Performance: The company achieved a 29% increase in total revenue for Q1, reaching $19.31 billion, surpassing estimates of $19.13 billion, while the Q2 revenue forecast of approximately $22 billion reflects robust performance in its AI semiconductor business and key customer partnerships.
- AI Demand Boosts Outlook: Despite the slowdown in the software segment, management anticipates a 9% increase in Q2 software sales to $7.2 billion, with the CEO asserting that the growth in AI will drive demand for VMware software, highlighting its critical role in modern data centers.
- Share Buyback Program: Broadcom announced a new $10 billion share repurchase program aimed at enhancing shareholder value, and although its stock has declined 8.3% year-to-date, shares rose 5.3% in after-market trading following the release of strong earnings.
See More
Broadcom Reports Strong Earnings, Optimistic Outlook for AI Chip Business
- Strong Earnings Report: Broadcom's fiscal Q1 2026 revenue reached $19.31 billion, surpassing the $19.18 billion consensus forecast with a 29% year-over-year increase, indicating robust growth potential in the AI chip sector.
- Improved Profitability: Adjusted earnings per share (EPS) rose 28% to $2.05, exceeding expectations of $2.03, while adjusted EBITDA grew 30% to $13.13 billion, further boosting investor confidence.
- Optimistic Future Outlook: Broadcom projects AI chip revenue to exceed $100 billion by 2027, having secured the necessary supply chain, reflecting strong confidence in future demand, particularly with a positive relationship with OpenAI.
- Shareholder Return Plan: The company announced a newly authorized $10 billion share repurchase program, which, combined with strong financial performance and an optimistic outlook, enhances market confidence in Broadcom's stock.
See More
Broadcom Projects AI Chip Revenue Exceeding $100 Billion Next Year
- Surge in AI Revenue: Broadcom reported a more than 100% year-over-year increase in AI revenue for Q1, reaching $8.4 billion, demonstrating the company's robust performance amid the AI boom, which is expected to drive sustained future growth.
- Strong Earnings Guidance: The company achieved a 29% increase in total sales to $19.3 billion in Q1, surpassing analyst expectations, with CEO Hock Tan projecting AI semiconductor revenue of $10.2 billion for the current quarter, further solidifying its market leadership.
- Rising Customer Demand: As large customers increasingly require custom silicon, Broadcom has secured the supply chain necessary to meet its 2027 sales targets, indicating strategic readiness to fulfill market demands.
- Key Customer Collaborations: Broadcom is assisting six major clients, including Google, Meta, Anthropic, and OpenAI, in chip design, which is expected to accelerate the next phase of custom AI deployment and further drive company growth.
See More
