Chinese AI Leaders Offer Alternative to Pricey Nvidia
-
Nvidia stock has soared thanks to AI, but may be in a bubble due to historic correlations and potential margin pressures.
-
Alibaba is the AI leader in China with Alibaba Cloud, and shares are trading at just 5x forward earnings when factoring out cash.
-
JD.com is using AI to innovate supply chains and shares trade for under 8x forward earnings with over half its market cap in cash.
-
Baidu is a leader in cloud services and autonomous driving in China, and trades at 8x forward earnings excluding its over $28B in cash.
-
Instead of buying Nvidia at a potentially inflated valuation, consider cheaper Chinese AI plays like Alibaba, JD.com and Baidu.