By Daniel Sparks
Publication Date: 2026-01-15 02:15:00
Both companies are riding the AI wave, but one stock offers a better mix of growth momentum and valuation today.
There are numerous ways to bet on AI (artificial intelligence). But two paths are particularly intriguing: the AI technology suppliers and the beneficiaries of AI at scale. In other words, you can buy the company selling the “picks and shovels,” or the chips and systems powering AI. Or, alternatively, you can invest in a company that integrates AI into existing products, services, and infrastructure used by billions of people.
Nvidia (NVDA 1.48%) and Alphabet (GOOG 0.04%)(GOOGL 0.04%) fit these buckets nicely, with Nvidia of course being the technology supplier and Alphabet being the scaled technology platform. Both stocks have, unsurprisingly, been big winners as AI demand has surged.
But with expectations now sky-high for both companies, the biggest question now is which stock offers the better risk-reward setup from today’s price.
Imag source: Getty Images.
Nvidia’s growth trajectory remains mind-boggling
Nvidia’s most recent quarter shows why the company has become the face of the AI boom, as the maker of the leading graphics processing units (GPUs) behind AI data centers. In its third quarter of fiscal 2026 (the period ending Oct. 26), Nvidia reported revenue of $57.0 billion, up 62% year over year. Data center revenue — the part of the business most tied to AI servers — was $51.2 billion, up 66%. And capturing the company’s pricing power, Nvidia’s…
