Nvidia May Be the Most Valuable Company in the World, but It Looks Like a Bargain Compared to These 3 Artificial Intelligence (AI) Stocks
The stocks on this list have been popular with artificial investors, but they trade at excessively high premiums, especially when compared to Nvidia.
Overview
Over the past five years, Nvidia (NASDAQ: NVDA) has generated returns of more than 950%, and along the way, it has become the most valuable company in the world. It's not a speculative buy as its valuation is backed by strong financials and profit growth. Even though its market cap of $5 trillion may suggest it's expensive, its price-to-earnings (P/E) multiple is 33, which is higher than the S&P 500 average of 26, but still nowhere near as high as some other stocks.
Given the company's robust opportunities in artificial intelligence (AI), it's not hard to make a case that it's worth a sizable premium. And it's a downright bargain when you compare it to the following AI stocks, which trade at far higher multiples.
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Originally published at www.fool.com.