googl or nvda? value investors face off

2025-03-03 nvidia

New York, Monday, 3 March 2025.
a debate is raging on valueinvesting subreddit: is alphabet a smarter investment than nvidia right now? analysts are weighing alphabet’s discount against nvidia’s hyper-growth potential. one analyst suggests alphabet offers a “comfortable margin of safety,” echoing warren buffett’s preference for great businesses at fair prices. nvidia, while exceptional, is seen as priced for perfection, leaving less room for error. the verdict? buy alphabet, but keep a close eye on nvidia for a better entry point.

nvidia’s current market position

Nvidia’s stock currently trades at $124.92, marking a 3.97% increase in the last 24 hours [5]. However, its market capitalization stands at $3.05 trillion, a decrease of 6.30% from the previous week [5]. Despite this recent dip, Nvidia has shown substantial growth, with a 57.94% increase over the past year [5]. Analysts predict the stock price could range from $135.00 to $235.92 [5]. This reflects both optimism and caution regarding its valuation and future performance [5].

revenue and earnings analysis

Nvidia’s last quarter earnings per share (EPS) were $0.89, exceeding estimates by 4.96% [5]. The revenue for the same period was $39.33 billion, surpassing the estimated $38.10 billion [5]. Projections indicate a revenue of $43.37 billion for the upcoming quarter [5]. Nvidia’s net income for the last quarter was $22.09 billion, a 14.41% increase from the previous quarter [5]. The company’s Q4 2024 revenue reached $39.3 billion, a 78% year-over-year increase, with a net profit of $22.1 billion, up 80% year-over-year [7].

competitive advantages and future growth

Nvidia holds a dominant position in the GPU market with a 90% share [7]. The rise of agentic AI is expected to drive further growth, requiring significantly more computing power [7]. Nvidia CEO Jensen Huang predicts a millionfold increase in computing power within a decade [7]. Data center revenue accounted for 90% of Nvidia’s total revenue, reaching $35.6 billion, a 93% year-over-year increase [7]. This highlights Nvidia’s strong position to capitalize on future AI advancements [7].

valuation concerns and analyst perspectives

Despite strong fundamentals, some analysts believe Nvidia’s stock is priced for perfection, leaving little room for error [1]. Concerns arise from the expectation of prolonged hyper-growth embedded in the stock’s current valuation [1]. From a forward price-to-earnings (PE) perspective, Nvidia’s valuation appears relatively cheap, even lower than Apple’s [3]. InvestingPro data shows Nvidia’s forward PE ratio as of January 31, 2026, is 26.7 times, lower than Apple’s 32.3 and 28.8 times for the fiscal years ending September 30, 2025, and September 30, 2026, respectively [3].

Bronnen

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