From Nasdaq:

Nvidia’s market cap is currently close to surpassing both Alphabet and Amazon. Artificial intelligence is a game changer and could significantly impact the future of investing. Nvidia’s data center business is booming, driving strong quarterly performance and record-breaking revenue. The company is also innovating to stay at the forefront of the AI industry, securing partnerships that will enhance its data center business. Taiwan Semiconductor Manufacturing is seeing unprecedented demand for energy-efficient computing power due to AI and 5G rollouts. The company has a favorable AI-driven tailwind behind it, making it an excellent play on AI and a cyclical return to growth.

Microsoft’s cloud business, enterprise customers, and software products all provide direct ways to implement AI solutions. The company has real results from its Microsoft Copilot AI solution and has shown traction across multiple AI solutions. Microsoft trades for a price-to-earnings ratio significantly below Nvidia’s, making it a good value with room to run. The Motley Fool Stock Advisor analyst team has identified 10 best stocks for investors to buy now, and Nvidia is not one of them. The 10 stocks that made the cut could produce significant returns in the coming years. As of February 6, 2024, Stock Advisor has more than tripled the return of S&P 500 since 2002*.

*Stock Advisor returns as of February 6, 2024. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Cisco Systems, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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