Nvidia is now the largest company in the world by market capitalization, thanks to its dominance in the AI field. However, its premium P/E ratio, competition from customers like Amazon and Alphabet, and reliance on AI infrastructure spending make it a risky investment at its current $4.6 trillion market cap.

Amazon, a major customer of Nvidia, is diversifying its chip procurement with in-house brands like those developed with AI start-up Anthropic. As Amazon plans to spend $200 billion on AWS, it could pose a challenge to Nvidia’s chip dominance in the future.

Alphabet, parent company of Google and YouTube, is another Nvidia customer-turned-competitor due to its in-house Tensor Processing Units (TPUs). Alphabet’s diversified business and lower P/E ratio compared to Nvidia make it a better AI investment option for the future.

Consider investing in Amazon or Alphabet for AI exposure, as both companies have lower P/E ratios and diverse revenue streams compared to Nvidia. The potential for growth in AI-related businesses makes them attractive investments for the future.

Forget Nvidia and consider investing in Amazon or Alphabet for AI exposure. These companies offer lower P/E ratios and diversified revenue streams, making them more compelling investments in the rapidly growing AI sector.

Read more at Yahoo Finance: Should You Forget Nvidia and Buy 2 Other Artificial Intelligence (AI) Stocks Instead?