From NASDAQ.: 2024-08-04 08:00:00

Tech stocks, including the Nasdaq-100 Technology Sector, have dropped 13% due to various reasons such as inflation reports, proposed chip export sanctions on China and the start of earnings season. This has created buying opportunities for long-term investors. Nvidia and Alphabet are two strong stocks to consider, with Nvidia showing growth potential despite recent drops.

Nvidia’s stock has fallen 12% in the last month, making it more accessible to new investors. Its current price-to-earnings (P/E) ratio is lower than its five-year average, suggesting room for significant gains in the future. With an upcoming earnings release on Aug. 28 and reports of outperforming AMD in the AI chip market, Nvidia remains a solid investment option.

Alphabet has seen substantial growth over the last five years, outperforming the S&P 500. Its recent second-quarter earnings beat expectations, with growth in Google Cloud and consistent profits in advertising. Despite a slight miss in YouTube ad revenue, Alphabet remains a reliable growth stock with strong prospects in AI and digital advertising.

Both Nvidia and Alphabet are prominent names in tech, operating in different areas of the industry. While Nvidia dominates hardware and AI chip markets, Alphabet focuses on digital advertising and cloud services. Alphabet’s stock currently offers better value with lower P/E and P/S ratios, making it a lower-risk investment choice at present.

Investors looking for potential high-return stocks should consider The Motley Fool Stock Advisor’s list of top 10 stocks, which excludes Alphabet but includes other companies primed for significant gains. The analyst team provides guidance on building a successful portfolio with regular updates and new stock picks, delivering returns that have outperformed the S&P 500 since 2002.



Read more at NASDAQ.: Better Tech Stock: Nvidia vs. Alphabet