Forget Nvidia and buy this tech stock instead?

Bynewspules
Spread the love

Everyone knows Nivea (NASDAQ: NVDA ) It is one of the most popular stocks in the market today. With a market cap of $3.24 trillion on January 13, it is not only one of the most valuable stocks, but also the most highly traded. In recent weeks, the daily dollar volume that moved from one investor to another was $28 billion. It’s more than that Total Dollar based transaction Apple, MicrosoftAnd Amazon.

So it’s no surprise. Motley Fool research report He got Nvidia stock in every hedge fund managed by a famous billionaire. Analyzing 16 funds, 10 ranked Nvidia among the 10 largest holdings.

But Nvidia wasn’t the most prominent name in this report. Eleven of these funds are listed. Alphabet (NASDAQ:GOOG) (NASDAQ: GOOGL ) As a top-10 container in partnership with Facebook and Instagram parent Meta forums.

Alphabet’s two classes of shares add up to $9.2 billion in daily trading volume, well behind Nvidia’s headline-grabbing signal. At the same time, Alphabet’s stock has gained roughly 35% over the past year, while Nvidia has returned 145%.

I’m not saying you should completely forget about Nvidia, but this might be a good time to lock in some of your gains in this stock and move the proceeds back to Google’s parent company. Here’s why.

Let’s start with the Spelling Challenge features. This The topic could be very long, but I’ll keep it short and simple here:

  • Looking for digital advertising? There may be many alternatives, but none of them can challenge Google’s massive market footprint. This business is not peanuts. Last year, it generated $258 billion in revenue and $115 billion in operating profit. At the same time, Nvidia’s sales stood at $113 billion.

  • The company is incredibly flexible. Management switched from Google to Alphabet to make products and services unrelated to core search and advertising more accessible to investors and customers. Now, the company generates 13 percent of its quarterly sales from Google Cloud Services. Another 11% is from the video-sharing platform YouTube. Alphabet’s smaller operations with big long-term potential include medical research, self-driving cars and high-speed Internet services.

  • Before letters were cool, he was a leader in artificial intelligence (AI). A subsidiary of DeepMind launched in 2010, it took the first steps towards creating general AI systems. His Alpha Zero chess engine raised eyebrows in 2017, playing the game on its own for millions of games and reaching its own conclusions within 24 hours. The resulting system was arguably the best chess computer of its time. The research that led to these headline-worthy highlights (and more) never stopped. Google and Alphabet should have more AI systems in the pipeline, and some of them could have game-changing results.

  • The stock is worth $2.3 trillion today, but it still looks reasonable. Alphabet A stock trades at 25.3 times earnings and 6.9 times sales. That’s bargain-basement value next to Nvidia’s corresponding ratios of 52.5 and 28.8.

Similar Posts