It becomes clear that artificial intelligence (AI) does not disappear. In fact, it seems that this revolutionary technology will only become an increasingly important part of our daily life.
This trend took advantage Nvidia (Nasdaq: NVDA) enormously. As the main supplier of Graphic processing units These AI power applications, she has seen her sales and her profits skyrocket, which has helped her graduate course to jump 1,830% in the past five years. Investors certainly want to participate in the action.
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But maybe there are better investment opportunities. If you send Nvidia and buy two IA stocks instead?
Two internet juggernauts
Investors should consider buying shares in Alphabet (Nasdaq: Googl) (Nasdaq: Goog) And Meta-platforms (Nasdaq: Meta)which are peaks of all time recently established.
These two companies have massive user bases. The different alphabet properties, including Maps, Android, YouTube, Gmail, Chrome and Gogle Search, as well as Facebook, Instagram and Whatsapp from Meta, are incredibly popular. This large distribution offers an important advantage, because alphabet and meta can constantly introduce new AI features for immediate adoption. Use data can be used to stimulate strategic orientation on product improvements.
Alphabet integrates AI throughout its different offers. Research has AI preview summaries, YouTube uses AI for content recommendations, and Google Cloud has AI tools that allow customers to create their own applications. In addition, users have access to META AI features to request information or to create images in its various social media applications.
The two companies generate most of their income from digital advertising efforts. It is logical that they also offer AI tools to advertisers who improve targeting capacities and aim to strengthen the return to marketing expenses.
Handset, alphabet and meta generated $ 38 billion available cash flow In the fourth quarter of 2024. And they finished last year with a cumulative of $ 134 billion in net cash on their balance sheets. This proves that they are in an elite category of financially healthy companies that have the resources necessary to continue to invest in an aggressively IA efforts.
So these are superb stocks. But is it time to ignore Nvidia?
Nvidia’s risks
Nvidia was a success of monsters. But it is not without risks that investors should not ignore.
A risk is to know how concentrated the customers of the company, resulting in disturbing dependence on a few accounts. During the year 2025, 34% of NVIDIA’s revenues came from only three customers. We think that the top of the customer list includes alphabet, meta, AmazonAnd Microsoft. In addition, these four so-called hyperscalers all work to develop their own AI chips.
Another risk is linked to potential cyclicity. Nvidia’s growth has been remarkable. But this can be worrying when you consider how much money is spent for AI, up to hundreds of billions of dollars scheduled for 2025. In a recession scenario, companies could considerably reduce their capital expenses related to AI, which would have a negative impact on Nvidia sales.
And of course, we cannot forget the competition. Nvidia has a dominant market share compared to rivals Advanced micro-apparents And Intel. However, newcomers could enter the industry, especially from China, which means that Nvidia must continue to operate at the top of her game.
Do not ignore the evaluation
To date, Nvidia’s shares are negotiated 19% on their peak, which was created in January. Given the enormous success of the company, some investors may not believe that the evaluation is steep. Trade shares at a Price / benefit ratio (P / E) 41.
But the alphabet and the meta are much cheaper. The actions of the first are negotiated with a multiple p / e of 21, while the second can be purchased for a ratio of 26. On this basis, all the other activities on the “magnificent seven” list of actions are more expensive.
To be clear, Nvidia’s actions could very well continue their ascent, so I would not suggest ignore it. However, I think that Alphabet and Meta offer investors the best value of IA space today.
Should you invest $ 1,000 in meta-platforms right now?
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Suzanne Frey, director of Alphabet, is a member of the board of directors of Motley Fool’s. Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Neil Patel And its customers have no position in the actions mentioned. The Motley Fool has positions and recommends micro advanced devices, alphabet, Amazon, Intel, Meta Platforms, Microsoft and Nvidia. The Motley Fool recommends the following options: Long January 2026 $ 395 Calls on Microsoft, short January 2026 405 $ calls Microsoft and short May 2025 30 $ calls Intel. The Word’s madman has a Disclosure policy.
The opinions and opinions expressed here are the opinions and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.