I like these AI Stocks Better Than Nvidia

Has Nvidia (NASDAQ:NVDA) stock finally peaked after failing to march higher following a quarterly result that can only be described as strong, but not surprisingly so? That’s what investors are asking themselves now that shares of Jensen Huang’s AI company are down more than 5% since pulling the curtain on those second-quarter results.

Indeed, you’d have to dig pretty deep into the numbers to find any kind of fly in the ointment, so to speak. Data center revenue, which grew a scorching-hot 56%, marked a slight miss. Still, I think there was a lot of interference that made a red-hot business look somewhat lukewarm relative to analyst expectations. And if Nvidia looks to start selling AI chips to China, perhaps the latest quarterly fumble could make way for a more promising one in the near future.

With “supply constraint” rumors swirling around and broad markets taking a slide to start the month of September, it seems like an uneasy time to be a dip-buyer, even for those who think the latest quarter takes nothing away from the AI boom. For now, though, I think there are more promising AI stocks out there for those who are worried that much of the past years’ worth of gains will be given back as the GPU maker faces its next big test.

Apple

Apple (NASDAQ:AAPL) has a new slate of iPhones and a fresh, new liquid-crystal design that could sell quite well after a fairly muted year, as those so-called “super cycle” hopes were shot down in a hurry. With the worst of the tariff headwind in the rearview mirror (thanks in part to Tim Cook’s charm and another $100 billion to be invested in America) and a new line of hardware that may just cause the masses to finally upgrade from their more than three-year-old devices, perhaps it’s time to start picking up some Apple stock while it’s still down on the year. Sure, not much big has changed about AI.

Depending on who you ask, the iPhone maker is still playing catch-up. That said, I do think that there’s really no need to rush the efforts, especially after an MIT study concluded that 95% of generative AI initiatives don’t deliver a profit.

I think such a report suggests that Apple critics might be wrong to criticize the firm for a perceived lack of AI innovation. Of course, Siri is in need of an upgrade. And as Apple looks to potentially bring Google Gemini on board, perhaps iPhone users will instantly get best-in-class AI smarts once the Siri upgrade finally does happen. In any case, I think once the profitability batting average of AI improves, Apple will be ready to step up to the plate for its big swing. 

In the meantime, I wouldn’t dismiss the relative laggard in the Mag Seven. If anything, it might be poised to score one of the best ROIs from AI in a few years. For now, investors should be patient, as the iPhone 17 line might just power a mini-super cycle without too much in the way of AI advancements. At the end of the day, iOS 26 and Liquid Glass may be enough reason to make the upgrade.

Alphabet

Alphabet (NASDAQ:GOOG) stock’s rally is accelerating following a recent favorable decision from a U.S. judge that effectively allowed the firm to avoid a worst-case scenario. Indeed, Google won’t have to break up, divest, or ditch its big deal with Apple (shares of AAPL also gained on the news), and for investors, that’s a big win.

The stock is currently up 7% on the decision, and while shares are getting pricier again, going for north of 23 times trailing price-to-earnings (P/E), they still stand out as a bargain, given Gemini’s shots at running away with the large language model (LLM) lead.

If Gemini becomes the default AI as Google Search is the default search engine in iPhones, perhaps GOOG stock could have more ground to gain. Given its AI potential and the sighs of relief following the recent judge ruling, I’d not be afraid to chase the stock as it blasts off to higher highs. As far as I’m concerned, GOOG stock is still an AI value name.

The post I like these AI Stocks Better Than Nvidia appeared first on 24/7 Wall St..