This Alphabet‑Heavy Fund Has a Front‑Row Seat to the AI Boom — and the Market Can See Why It’s Suddenly a Top Performer

Whale Rock Capital Management, run by the very impressive Alex Sacerdote, is having its moment in the sun after yet another incredible quarter. Indeed, the fund might be lesser-known compared to some of the other giants out there, but it’s rising through the ranks — and fast, thanks in part to a very unique mix of investments, many of which have been pulling heavy weight in recent quarters.

Whale Rock Capital is on quite a run

Of course, Alphabet (NASDAQ:GOOG | GOOG Price Prediction) has been the Mag Seven stock that’s been the envy of the other six. Even as the shares cool off after an intriguing I/O 2026 event, questions linger as to whether the $4.7 trillion titan has what it takes to go for that top spot.

I think it does, as it looks to dominate each and every layer of the AI stack from models and applications to hardware and even energy. The stock is now up 123% in the past year and has won even more investment from Warren Buffett’s Berkshire Hathaway (NYSE:BRK.B), which added to its stake heavily last quarter.

While the Alphabet position shines as Whale Rock’s top holding, at least as of the end of the first quarter, it’s the names below it that stand out as even more impressive.

Whale Rock added to its Alphabet position in the latest quarter while taking profits off the table of some of the other, more-heated winners, including Sandisk (NASDAQ:SNDK), Celestica (NASDAQ:CLS), and Corning (NASDAQ:GLW), some of the hottest stocks in the entire market right now, up 3,975%, 200%, and 295%, respectiely, in the past year. Indeed, the Alphabet position was quite hot, but it’s the other names in the Whale Rock fund that have been blistering-hot.

Advanced Energy Industries is an intriguing Q1 pick

After such multi-bagger moves, I think it’s only wise to take some chips off the table (no pun intended). Of course, the hot names remain in significant positions, even after the latest round of Q1 trimming. What’s most exciting for investors, of course, are the buys made in Q1. Advanced Energy Industries (NASDAQ:AEIS) stood out. It’s a lesser-known $12.9 billion mid-cap firm that’s down around 16% from its highs, but is up 180% in the past year. The company makes equipment for power conversion, measurement, and control.

In other words, it produces the equipment needed for the grid. And as AI looks to bring forth the massive expansion of utility-scale grids, I think a name like Advanced Energy Industries is a wise bet. What’s more, though, is that the name was a new position for many other hedge funds in the last quarter.

While shares have already gained a great deal, I still think there’s relative value to be had in the name that’s standing quietly behind the curtain of this AI revolution. At 36.5 times forward price-to-earnings (P/E), the name may very well be one of the last of the cheap AI-driven power plays.

The market has already realized that the AI boom means more data centers, infrastructure (chips, DRAM, NAND, cooling systems, and all the sort), and power needed to build them. Now, the rising tide is working its way through the grid modernizers. It’s tough to tell where the mid-cap name goes from here, but the smart money buys, I think, make the name difficult to ignore.

The bottom line

Betting on a cheap AI colossus like Alphabet seems wise, but for those seeking to increase the risk/reward profile, perhaps Advanced Energy Industries is also worth a second look. Any way you look at it, Whale Rock Capital looks poised for continued performance as this AI revolution moves onward and upward.