From Nasdaq: 2024-06-02 03:50:00

Nvidia (NASDAQ: NVDA) continues to impress investors with a 262% year-over-year revenue increase to $26 billion in Q1 2025. Operating income also rose by 690%. With anticipated sales of $28 billion in the current quarter, the market’s high expectations are reflected in the P/S ratio of 35.9. However, chasing returns may not be a wise strategy with Nvidia’s inflated valuation.

Alphabet (NASDAQ: GOOGL, GOOG) stands out as a dominant leader in AI with $307 billion in sales last year and projected 11.5% annual revenue growth through 2026. Alphabet’s vast user base and AI-driven products like Photos, Maps, Gmail, and YouTube position it well to capitalize on the AI trend. With a P/S ratio of 7.2, Alphabet offers a more reasonable investment opportunity compared to Nvidia.

The Motley Fool Stock Advisor team recommends looking beyond Nvidia to other potential growth stocks, excluding Alphabet. This advisory service has a track record of identifying stocks that have delivered significant returns, surpassing the S&P 500. Consider exploring the 10 best recommended stocks for better investment prospects. strncpy

Investors seeking exposure to AI can benefit from considering Alphabet as a strong contender in the AI market. With significant financial resources, strategic focus on AI-driven products and services, and a more reasonable valuation compared to Nvidia, Alphabet presents a compelling investment opportunity for long-term growth.



Read more at Nasdaq: Forget Nvidia: 1 Artificial Intelligence (AI) Stock to Buy Instead