From Nasdaq, Inc.:

Nvidia, a popular choice for AI investment due to its high-end GPUs, is expected to see 119% revenue and 268% earnings growth this year. However, at 30 times forward earnings, it’s not exactly a bargain. In comparison, Super Micro Computer (SMCI) trades at 27 times earnings and is growing rapidly as the demand for Nvidia-powered AI servers expands.

Taiwan Semiconductor Manufacturing (TSMC) is another key player in the AI market, as the largest and most advanced contract chipmaker. Its 18 times forward earnings make it a more affordable opportunity to invest in AI expansion compared to Nvidia.

Alphabet, with Google at its core, is yet another company offering a cheaper way to invest in the AI market. Its diverse ecosystem and expanding cloud platform make it an attractive option at 21 times forward earnings, especially with the growth accelerating in the second half of 2023.

Ultimately, before investing in Nvidia, consider exploring other AI investment alternatives that may provide a better investment opportunity. The Motley Fool’s Stock Advisor team has identified ten companies that could produce significant returns in the coming years – Nvidia not included.



Read more: 3 Promising AI Stocks That Are Cheaper Than Nvidia