Think Nvidia is the Best Artificial Intelligence (AI) Stock to Buy? Think Again. Buy This Growth Stock Instead. | The Motley Fool

There is nothing wrong with Nvidia (NVDA +2.06%) as a business. On the contrary, it’s seeing explosive growth.

Its fourth quarter of fiscal 2026 was remarkable, with revenue rising 73% year over year to $68.1 billion and data center revenue climbing 75% to $62.3 billion. Additionally, management guided for first-quarter fiscal 2027 revenue of about $78 billion — a huge sequential uptick.

Results like these reflect extraordinary execution by any standard.

But there are several factors that keep me on the sidelines with Nvidia, including the cyclicality of the chip industry, its limited business diversification, and its premium valuation.

So, how can you invest in artificial intelligence (AI) while also mitigating these risks? I think a good way is with Alphabet (GOOG +3.44%)(GOOGL +3.88%).

For Alphabet, AI is already showing up in Search usage, Cloud growth, subscriptions, and monetization. And unlike Nvidia, Alphabet isn’t relying on one main AI profit stream to make the valuation work.

Search remains a powerhouse

Alphabet’s fourth-quarter 2025 revenue rose 18% year over year to $113.8 billion, fueled by a number of businesses. The company’s Google search and other revenue increased 17% to $63.1 billion, and Google subscriptions, platforms, and devices revenue rose 17% to $13.6 billion.

But what’s interesting is just how strong search is proving to be in an AI era. In fact, it’s looking like AI could prove to be a major tailwind for…