From Nasdaq: 2024-06-07 08:30:00

Although Microsoft (NASDAQ: MSFT) is the largest company in the world, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) appears to be a more attractive buy at the moment due to its lower premium and recent positive performance. Both companies are integrating generative AI into their platforms, with Alphabet having more control over its AI model than Microsoft.

Both Microsoft and Alphabet recently upgraded their primary products with generative AI technology, with Microsoft introducing Copilot and Alphabet adding a summary feature powered by its in-house large language model (LLM). Alphabet has full control over its LLM, while Microsoft has partnered with OpenAI, giving Alphabet a potential edge in AI technology.

From a financial standpoint, both Microsoft and Alphabet had strong initial quarters in 2024, with Microsoft valued at a 35 times forward earnings versus Alphabet’s 23. This valuation mismatch makes Alphabet a more appealing investment as any less than perfect performance from Microsoft could result in a stock drop.

Investing in Alphabet over Microsoft may offer a better opportunity for investors, considering the valuation, performance, and potential future growth of both companies. The Stock Advisor analyst team has identified Alphabet as a strong investment opportunity, with potential for significant returns in the coming years.



Read more at Nasdaq: Here’s Why Alphabet Is a Much Better Buy Than Microsoft Right Now