Missed Out on Nvidia? My Best AI Stock to Buy and Hold.
What I love most about investing (besides making money, of course) is its dynamic nature. The market is ever-changing, and investors always have something to debate. Just a few months ago, the talk was all about a possible recession (and there is still a chance we will see one). These days, the conversation is all about the incredible possibilities in tech brought on by artificial intelligence (AI) and machine learning (ML).
Nvidia floored the market with its first-quarter earnings release and crazy-good guidance. The stock is now up 189% so far this year and nearly 615% over five years. It also trades near its higher price-to-earnings (P/E) and price-to-sales (P/S) ratios ever, at 220 and 41, respectively. The company has a tremendous future, but now may not be the best time to buy because of its high valuation.
While you're waiting for a pullback, many other compelling AI/ML opportunities exist, and Amazon (NASDAQ: AMZN) is a terrific candidate. AI permeates Amazon's business, from logistics efficiencies to digital advertising to product placement. Amazon is also the world's largest cloud services provider with Amazon Web Services (AWS). Massive data powering AI for companies runs on AWS. Amazon Bedrock is another AI initiative that allows companies to customize existing AI/ML models for their needs. And, of course, it runs on AWS.
Source Fool.com
