Investors should consider buying Alphabet over Nvidia in 2025 due to growth potential

From Nasdaq: 2025-01-08 04:51:00

In 2024, Wall Street’s bull market rally saw the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite gain 13%, 23%, and 29%, respectively, thanks to the outperformance of the “Magnificent Seven” companies.

The “Magnificent Seven” companies, including Amazon, Tesla, and Nvidia, have historically outperformed the S&P 500, with gains of 1,350%, 2,710%, and 28,610% over the last decade.

Alphabet, the cream of the crop in 2025, dominates internet search with a 89-93% market share, and YouTube’s growth potential is promising.

Alphabet’s cloud service platform, Google Cloud, is expected to drive double-digit revenue growth and increase operating cash flow in the latter half of the decade.

Nvidia, a member of the Magnificent Seven, may not be worth buying in 2025 due to competition, potential tariffs, and a high valuation.

Nvidia’s dominance in AI-GPUs and gross margin boost may be fully priced in, with competition from major customers like Microsoft, Meta, Amazon, and Alphabet.

Nvidia’s future is uncertain due to potential tariffs on imported goods, competition, and historical bubble-bursting events in new technologies.

“Don’t miss this second chance” opportunity to invest in potential high-growth stocks like Nvidia, Apple, and Netflix.

The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, with notable board members in these companies.



Read more at Nasdaq: 1 “Magnificent Seven” Stock to Buy Hand Over Fist in 2025 and 1 to Avoid