Posted 1/16/2024, 3:00:00 PM
Nvidia Soars in 2023 But Microsoft and Alphabet Offer Better Value Buys for 2024
- Nvidia stock skyrocketed in 2023, but its high valuation makes it expensive compared to alternatives like Microsoft and Alphabet in 2024
- Microsoft is a tech giant with massive reach and brands like Windows and Azure, and it recently invested heavily in AI with a stake in ChatGPT developer OpenAI
- Microsoft stock has significant growth potential but is cheaper than Nvidia by valuation metrics like forward P/E, P/FCF, and P/S
- Alphabet dominates digital advertising and is developing an AI model called Gemini to expand into new areas like enhanced search and YouTube analytics
- Like Microsoft, Alphabet offers much more value than Nvidia with lower forward valuation ratios, making it a strong buy for 2024