The Tech Giant You Should Be Watching
Nvidia (NASDAQ: NVDA) is undoubtedly one of the most popular and valuable stocks on the market, with a staggering $3.24 trillion market cap. Its daily trading volume is a whopping $28 billion, surpassing that of Apple, Microsoft, and other tech giants. It’s no wonder that many well-known billionaire-managed hedge funds have Nvidia stock in their top 10 holdings.
A Hidden Gem in the Tech World
However, another tech giant is quietly gaining traction. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google, is often overlooked despite its impressive performance. With a daily trading volume of $9.2 billion, it may not be as flashy as Nvidia, but its stock has gained a respectable 35% over the last year, compared to Nvidia’s 145% return.
Why Alphabet Should Be on Your Radar
Alphabet’s digital advertising business is unparalleled, generating $258 billion in top-line revenues and $115 billion in operating profits over the last year. Its flexibility is also noteworthy, with management having renamed the company from Google to Alphabet to accommodate its diverse range of products and services. Today, Alphabet generates 13% of its quarterly sales from Google Cloud services and 11% from YouTube.
A Leader in Artificial Intelligence
Alphabet has been at the forefront of artificial intelligence (AI) research, with its DeepMind subsidiary pioneering the development of general AI systems. Its AlphaZero chess engine, which learned the game by playing millions of games against itself, is a testament to the company’s innovative spirit. With a plethora of AI systems in development, Alphabet is poised to make a significant impact in the tech world.
A More Affordable Option
Compared to Nvidia, Alphabet’s stock is relatively affordable, trading at 25.3 times trailing earnings and 6.9 times sales. This is a bargain compared to Nvidia’s corresponding ratios of 52.5 and 28.8. While Nvidia’s stock is likely to continue growing, its days of quick and easy gains may be behind it.
A Better Buy for the Long Term
In conclusion, Alphabet’s stock offers a more promising long-term investment opportunity than Nvidia’s. Its diverse range of products and services, leadership in AI research, and affordable share prices make it an attractive option for investors. So, if you’re looking to diversify your portfolio, consider adding Alphabet to your list of potential buys.
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