From Nasdaq: 2025-04-17 11:00:00

Tech giants Alphabet (NASDAQ: GOOG) and Nvidia (NASDAQ: NVDA) are leading the way in artificial intelligence (AI) investments, offering different aspects of the AI ecosystem to investors. Nvidia provides semiconductor hardware for AI operations, while Alphabet’s software products bring AI benefits to consumers through Google search engine responses.

Alphabet is heavily investing in AI, with $52.5 billion in capital expenditures in 2024, expecting to increase to $75 billion by 2025. The company aims to retain Google revenue by appealing to AI users as search engine usage is predicted to decline by 25% in 2026 due to the rise of AI tools like OpenAI’s ChatGPT.

Alphabet’s AI products, including Google Cloud, have seen an eightfold increase in usage over the past 18 months, contributing to Google Cloud revenue rising to $43.2 billion in 2024. The company is also working on experimental quantum computers, like the Willow quantum chip, which could revolutionize computing capabilities.

Nvidia experienced a 114% sales growth to $130.5 billion in fiscal year 2025, driven by tech companies adopting Nvidia products for AI capabilities in cloud data centers. The company expects $43 billion in sales for its 2026 fiscal year, with the age of AI reasoning focusing on refining AI models for more human-like thinking.

Both Alphabet and Nvidia have strong financials, with Alphabet’s 2024 revenue reaching $350 billion, while Nvidia’s sales hit $130.5 billion in fiscal 2025. Stock valuation using the price-to-earnings ratio shows Alphabet as a better value investment, but Nvidia’s leadership in AI components and growth prospects make it an attractive option now.

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Read more at Nasdaq: Better Artificial Intelligence (AI) Stock: Alphabet vs. Nvidia