Asset Watch
Tuesday, June 19, 2023
As a result, if the seasonal weakness pushes Alphabet closer to its 50-week MA, it could present a buying opportunity for those that missed out on the recent rally. Even though artificial intelligence (AI) has dominated the headlines recently, many of the winners trade at astronomical valuations. In other words, they have already priced in substantial revenue and earnings growth.
On the other hand, Alphabet trades at roughly 28x earnings, which is well below NVIDIA’s 222x. So, the former boasts AI upside, dominant advertising revenue, and a reasonable valuation.
Should you buy Alphabet on any dip, or are there better ways to play the AI revolution?