Artificial intelligence (AI) phenomenon Nvidia (NASDAQ: NVDA) recently overtook to become the most-valuable company in the world. Valued at more than $3 trillion, Nvidia has delivered incredible gains for investors as sales of its AI chips exploded.

Despite Nvidia's success, there's a distinct possibility that the stock has reached full-blown bubble territory. Nvidia stock trades for around 40 times sales, well beyond its peak valuation at the height of the dot-com bubble. Nvidia is going to need to continue to grow at incredible rates while maintaining its sky-high profit margins in the face of ever-increasing competition to justify the stock's price tag.

Nvidia's nosebleed valuation makes the stock incredibly risky. For investors looking to bet on AI without taking so much risk, Intel (NASDAQ: INTC) and Qualcomm (NASDAQ: QCOM) look like safer bets.

Continue reading

Source Fool.com