From NASDAQ: 2025-05-30 11:13:00

Artificial intelligence (AI) leaders, known as the “Magnificent Seven,” may face challenges ahead as tech giants like Nvidia and Alphabet dominate the market. Nvidia has seen a 701% gain in the generative AI boom, while Alphabet’s stock has risen by 72%. Investors are questioning which AI stock is the better buy.

Nvidia’s stock has multiplied by 8 in 30 months, with a valuation of 25 times sales and 54 times free cash flows. Despite high prices, Nvidia’s sales have doubled annually, making it an attractive option for growth-oriented investors. Analysts overwhelmingly recommend buying Nvidia stock, predicting further gains in the future.

Alphabet, despite slower growth rates, makes more money than Nvidia. Its annual revenues are three times larger, with a valuation of 5.9 times sales and 28 times free cash flows. Alphabet is a value-oriented bet on the AI boom and a solid long-term investment with potential for growth in any economy.

Investors are debating whether to invest in Nvidia or Alphabet. While Nvidia offers rapid growth potential, Alphabet’s stability and reasonable share price make it an appealing choice. Both companies have strengths in the AI market, but Alphabet’s longevity and solid performance make it a favorite for many investors.

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