Microsoft and Intel Positioned as Long-Term AI Buys While Nvidia Looks Overvalued
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Nvidia stock has soared over 200% in the past year due to its leadership in AI, but its valuation looks expensive. Microsoft and Intel are cheaper AI alternatives to consider buying.
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Microsoft's Azure cloud computing platform is growing rapidly, partially thanks to strong demand for its AI services. Its AI assistant CoPilot and recovering core businesses are other growth drivers.
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Intel should benefit from the recovering PC market in 2024 and rapid growth in AI PCs enabled by its new Core Ultra processors. Its foundry business also presents a major growth opportunity.
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Microsoft trades at a premium valuation but its AI strength and improving IT spend warrant it. Intel trades at a discount versus peers despite its strong AI tailwinds.
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Both Microsoft and Intel look like attractive long-term AI buys for 2024, even if Intel encounters some near-term headwinds.