Alphabet and Amazon Offer Cheaper AI Exposure Than Nvidia Despite Strong Growth
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Nvidia (NVDA) has benefited greatly from the rise of AI, but faces risks like growing competition and potential margin pressures as production ramps up.
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Nvidia trades at a very high valuation of over 30x forward cash flow estimates.
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Alphabet (GOOGL) trades at a much cheaper 13.5x forward cash flow with growth potential in Google Cloud's AI offerings.
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Amazon (AMZN) trades at just 13x forward cash flow despite dominance with AWS, which is using AI across its cloud platform.
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Both Alphabet and Amazon offer AI exposure at significantly cheaper valuations than Nvidia.