Think Nvidia Stock Is Expensive? Buy This Cheap AI Stock Hand Over Fist
Nvidia (NASDAQ: NVDA) is one of the most popular names in the artificial intelligence (AI) space. That's because the company's products and services play a mission-critical role in the adoption of this technology. The market is catching on to this fact and it goes some ways to explain why the stock gained a whopping 189% so far this year.
AI supercharged the sales of Nvidia's data center graphics cards, which are critical for training AI models and running inference applications. The massive demand is expected to bring Nvidia 64% year-over-year revenue growth in the current quarter to $11 billion. Even better, analysts anticipate Nvidia will sustain this momentum for the rest of the fiscal year (ending in late January 2024) and post almost $43 billion in revenue, which would be a big increase over fiscal 2023's $27 billion.
Investors who still want in on Nvidia's AI-driven rally will have to buy stock valued at a rich 41 times sales. Though Nvidia may be able to justify such an expensive valuation thanks to its dominance in the multibillion-dollar market for AI chips, there are relatively cheaper options for investors looking to jump onto the AI gravy train.
Source Fool.com
