Alphabet generated $8.04 in earnings per share (EPS) during 2024, which places its stock at a price-to-earnings (P/E) ratio of 23.7. That makes it significantly cheaper than Nvidia, Microsoft, and Apple, which trade at an average P/E ratio of 39.7:

Shares of the artificial intelligence (AI) chip leader have been crushed this year, but recent developments suggest the best is yet to come.

Investors were looking to Microsoft and Meta to provide reassurance that they will keep spending heavily on Nvidia chips.

Commitments for data center spending keep rising. That is good news for any company connected to the artificial intelligence (AI) bonanza. Microsoft CEO Satya Nadella just reaffirmed his plan to spend $80 billion on AI data centers in 2025,

Nvidia Corp.’s stock is declining in Monday action as investors weigh the potential for tariffs to impact chip companies and continue to assess the fallout from DeepSeek. Shares of Nvidia are down 3.4% in midday action to rank among the worst performers in the PHLX Semiconductor Index The stock has pared losses with President Trump now saying he has agreed to pause the Mexico tariffs for a month.

Importantly, other Wall Street analysts seem to be thinking along similar lines. Despite the DeepSeek news, Nvidia still has a median target price of $175 per share among the 67 analysts who follow the company. That implies 45% upside from its current share price of $120.