Alphabet and Nvidia: Contrasting AI and Growth Investment Cases
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Alphabet has a wider AI investment case than Nvidia, with businesses in AI models, cloud computing, and advertising. Nvidia is focused narrowly on GPUs for AI computing.
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Nvidia is growing revenue incredibly fast, up over 200% year-over-year. Alphabet has solid but slower growth around 11% per year.
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Alphabet's growth seems more sustainable long-term versus concerns Nvidia growth may drop off.
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By valuation metrics like P/E ratio, Alphabet looks cheaper than the very expensive Nvidia stock.
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Nvidia has more total upside potential but Alphabet offers steadier and more reliable growth over time.