Alphabet Vs Nvidia

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Alphabet Vs Nvidia

Alphabet Vs Nvidia: Which Stock Is A Buy?

few months back, everyone would have picked Nvidia over Alphabet any day! But now, things have changed with the emergence of DeepSeek, a Chinese AI company.

The arrival of DeepSeek absolutely crushed the companies related to the AI field. And one of those firms was Nvidia, a leading supplier of chips for all the major tech companies.

Deepseek: The Culprit Behind Tech Sell-Off

The DeepSeek sent major shockwaves and wiped $600 billion of Nvidia's market cap in one trading session. Such a big decline has also caused many to question if big investments in billions are really needed for powerful chips.

Another question that is making the rounds is this: Will other companies be able to replicate the DeepSeek? If that happens, there will be no need to spend billions on training AI models.

If we look at Alphabet, it also faces threat from the Chinese AI company. However, Alphabet's stock didn't decline as sharply as Nvidia's.

However, that's not to say that Alphabet is doing all good. In fact, the company is facing its own issues and one of them is the DoJ lawsuit. If this turns serious, the Alphabet may be forced to break into different pieces and sell the Chrome browser.

Looking forward, things will improve for Nvidia, and we will get out of this doom phase. One key reason why Nvidia dropped so hard on DeepSeek news was that it was trading at a higher valuation.

However, the higher valuation is now out of the picture after the recent sell-off in Nividia. Now, Nvidia is available at a discount, given its earlier trading prices.

For now, the Alphabet is a better stock than the Nvidia. The DoJ lawsuit is still ongoing, and it looks like the company will not be forced to sell Chrome. Also, the Alphabet is trading at x22 forward earnings, which makes it a better choice than Nividia.

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