Alphabet: A More Reasonable AI Investment Option Compared to Overvalued Nvidia
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Nvidia stock has surged recently due to AI hype, but its valuation now seems stretched at 97 times earnings. Buying now is risky.
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Alphabet has been an AI-focused company for years, with products like Google Search and Maps relying on AI behind the scenes.
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Alphabet recently launched an AI chatbot called Bard to compete with ChatGPT, and its Google Cloud offers AI services.
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Alphabet dominates search and maps, giving it an advantage in data to power AI services. Cloud and advertising are growing double-digits.
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Alphabet stock trades at a reasonable 21 times forward earnings. With growth and AI exposure, it's an attractive long-term investment.