In a recent publication, we explored thirteen NASDAQ stocks that showcase substantial upside potential, and today we shift our focus to examine the current standing of Alphabet Inc. (NASDAQ:GOOGL) within this competitive group. As one of the giants in the tech industry, Alphabet's performance is of keen interest to investors and analysts alike.

On April 7, Dan Ives, a prominent analyst at Wedbush Securities, made an appearance on CNBCs popular program Squawk on the Street. During the segment, he provided insights into how the current tariff landscape is poised to affect technology supply chains significantly. The impacts of high-profile figures like Elon Musk, coupled with the tariff policies initiated during the Trump administration, have created a swirl of economic uncertainty that Ives refers to as an economic 'Armageddon' for U.S. tech.

Ives articulated his concerns regarding the structural challenges posed by recent tariffs and the ongoing geopolitical tensions, emphasizing that these factors could erase the competitive edge that the U.S. tech sector has traditionally held over its Chinese counterparts. He warned that if manufacturing operations were to be relocated back to the United States, the associated logistical challenges would be formidable. Establishing manufacturing plants in the U.S. is not only a lengthy process but could take between four to five years to reach production capacities that mirror those found in Asia.

Despite these grave concerns, Ives mentioned that he refrains from downgrading major tech stocks, particularly those within the MAG7 (Microsoft, Apple, Google, Amazon, Facebook, Nvidia, and Tesla) group. However, he remains cautious about the potential ramifications if the issues surrounding tariffs linger for an extended period. He forecasts that if the current climate continues, it could lead to substantial reductions in earningspotentially as much as 25% across the tech sector. Moreover, he expressed that this uncertainty could stifle demand for emerging technologies such as artificial intelligence (AI) and cybersecurity solutions.

In his critique, Ives did not hold back on his view of Elon Musks forays into politics, suggesting that such involvement has inflicted lasting damage on Musk's brand image and customer relationships. He estimates a demand drop of approximately 20% in Europe and 10% in the United States, a significant decline in the context of the global tech market.

Our Methodology

To identify the thirteen stocks with the highest upside potential, we employed the Finviz stock screener and focused on those stocks with analysts' projections showing an upside of at least 35%, as of April 8. These stocks are meticulously ranked by their potential for growth, providing a clear picture of the market landscape. In addition, we incorporated hedge fund sentiment for each stock based on data collected from Insider Monkeys database as of the fourth quarter of 2024.

Our interest in stocks favored by hedge funds stems from a straightforward rationale: extensive research indicates that mimicking the top picks of leading hedge funds can result in outperformance of the market. Our quarterly newsletter employs a strategy that selects fourteen small-cap and large-cap stocks each quarter, boasting an impressive return of 373.4% since May 2014, significantly surpassing its benchmark by 218 percentage points.

Is Alphabet Inc. (NASDAQ:GOOGL) a NASDAQ Stock with the Highest Upside Potential?

In light of the analysis presented, we invite readers to consider the implications of Alphabets positioning in a volatile economic climate. As they type their queries into the Google search box, they are not just engaging with a search engine; they are partaking in the overarching narrative of technology, finance, and the future of digital communication.