Alphabet Inc. Gaining Momentum in the AI Race
Nvidia NVDA has long held the spotlight for its strides in artificial intelligence. However, there’s an underdog in the AI race that has been gaining momentum, and according to strategist Matt Orton of Raymond James Investment Management, that underappreciated gem is Alphabet Inc GOOG GOOGL.
Revolutionary Innovation with Gemini
Orton highlighted Alphabet’s groundbreaking move with the launch of Gemini, touted as Alphabet’s largest and most potent AI model to date. This innovation has the potential to revolutionize customer service engagement, trend identification for targeted advertising, content creation, and productivity applications.
The Game-Changing Potential of Gemini
The strategist dubbed Gemini, a “game changer” in the AI landscape.
Alphabet’s Attractive Valuation in Comparison
Orton also took the opportunity to highlight the fact that Alphabet’s stock is “trading at a really attractive valuation still, especially relative to some of the other Magnificent Seven.”
Comparison of Valuation Ratios
| Symbol | P/E FWD | PEG FWD | Price / Sales | EV / EBITDA | Price / Book | Price / Cash Flow |
| GOOG | 24.46 | 1.39 | 5.95 | 17.26 | 6.37 | 16.33 |
| TSLA | 75.56 | 4.5 | 7.94 | 49.33 | 14.3 | 62.84 |
| NVDA | 42.67 | 1.01 | 28.74 | 57.91 | 38.74 | 68.51 |
| MSFT | 33.44 | 2.29 | 12.77 | 25.07 | 12.62 | 29.32 |
| META | 25.01 | 1.25 | 7.32 | 16.6 | 6.45 | 13.92 |
| AMZN | 55.43 | 2.05 | 2.76 | 22.21 | 8.42 | 21.5 |
| AAPL | 28.11 | 3.08 | 7.62 | 22.63 | 46.43 | 26.11 |
Potential for Significant Rewards in the AI-Driven Market
As Alphabet continues to unveil its AI capabilities and solidify its position in the tech landscape, investors might find a hidden treasure in this underappreciated yet formidable player, potentially reaping significant rewards in the evolving AI-driven market of 2024 and beyond.