Jeffreies’ analysts recently ranked so -called “magnificent Seven” brands based on which stocks would be outperformed in 2025. This name refers to a group of major high -tech shares, which has contributed to the rise of the market for the past few years. year.
NVIDIA was the top in the group (NVDA -3.12%) And alphabet (Google 1.13%) (Goog 1.16%)。 This group also includes Meta Platform, Apple, Amazon, Tesla, and Microsoft in the ranking order of Jeffreies.
The company’s rankings include some of them, such as growth, valuation, yields, revenue corrections, cellular analysts sentiment, drop -capital profit ratings (ROIC), stock prices, research and development (R & D) and capital investment (capital spending). Based on quantitative scale. ) Expenditure.
The main reasons for NVIDIA have won the top position, mainly for their powerful growth, upward revisions to guidance, attractive value, and analysts.
Let’s take a look at why I think that both NVIDIA and Alphabet shares are attractive buying materials.
1. Nvidia
NVIDIA is still growing incredibly powerful with attractive valuations. The company has been proceeding at a pace of reporting an increase in three digits for the second consecutive year, which is very noticeable considering its scale.
Analysts, on the other hand, predicts that sales will increase by 50 % or more in 2025. In addition, the future stock price (PER) is less than 33 times, and the stock price rate (PEG) is 30 times attractive. 1. Growth stock PEG often exceeds 1, but PEG below 1 is generally underestimated.
The growth of NVIDIA is brought by desperate construction of artificial intelligence (AI) infrastructure and a combination of a large moat built by the company through the CUDA software platform. The company’s graphics processing unit (GPU) was originally created to speed up the graphics rendering of video games, but it has become a backbone for AI infrastructure due to its excellent processing speed.
Major technology and AI emerging companies are urgently improving the AI model, and needs more computing skills to train AI models, and the main source is the GPU. Through the NVIDIA library, tools, and micro services CUDA X collection, the company’s semiconductor can be easily programmed according to various AI tasks, so we have gained nearly 90% market share in the GPU field.
Elon Musk’s XAI is a good example of the use of GPUs in AI model training. The company used 20,000 GPUs for the GROK 2 model training, but initially used 100,000 GPUs for the training of the GROK 3 model, but increased to 200,000 GPUs in the training phase 2. Mask, on the other hand, talked about the XAI data center, which hosts 1 million GPU clusters in the future.
Meanwhile, Microsoft, the largest customer of NVIDIA, has announced $ 80 billion in the AI data center this year. The consortium consisting of Oracle, SoftBank Group, and Openai has also lost, and as part of the recently announced Project Stargate, we have discussed up to $ 500 billion in AI infrastructure in Texas.
Many of this expenditure will definitely be spent on the GPU. These projects indicate what NVIDIA will do in the future.
Image source: Getty image.
2. Alphabet
There is no super -large company that is comparable to Nvidia’s recent growth, but the alphabet has the most cheaper evaluation of Magnification Seven and the expected PER is only 19.4 times.
In the previous quarter, the sales of the alphabets were 15% steady, profits increased 34%, and profit per share increased by 37%. The Google Cloud in the cloud computing department led this growth, increasing 35%.
Cloud computing is a very highly fixed business, and once the business reaches the scale, it has a great operation effect. This was seen in the previous quarter, with the profitability of the department’s profitability, and the operating profit of the department has surged $ 1.95 billion to $ 1.95 billion in the same period of the previous year.
As the organization is working on the building of its own AI models and applications, it is expected that this business will continue to grow as much as Alphabet adds the data center capacity. On the other hand, the company has developed its own custom AI chip with the support of BROADCOM, and combined with the GPU contributes to reducing AI inference processing time and reducing costs, making it possible for sales leverage to increase further. be.
Google Cloud has continued to expand its size as the smallest company among the three major cloud computations, and its custom chips will continue to improve profit margins and lead to significant growth of profits.
At the same time, Alphabet has a global search engine on Google and the world’s most watched streaming platform YouTube. These businesses have continued to grow two -digit revenue, and the sales of the Google Service Division as a whole increased by 13% in the previous quarter. Operating income in the department increased by 29 % to $ 30.9 billion.
This year, the company aims to incorporate a new GEMINI AI model to the entire business to promote growth, and also promote the Gemini app, the answer to ChatGpt.
Management has also invested in other emerging businesses, such as quantum computing, which recently announced large technical progress. The company currently owns Waymo, the only company that offers paid robot boxes in the United States. These are currently in the red, but have a great possibility.
Overall, Alphabet has long -term reliable options, with a long -term reliable option, and well combines growth and value.
Randy Zuckerberg is a former market development of Facebook and a public relations staff, a sister of Mark Zuckerberg, Meta Platforms CEO, and a member of the Motory Fool’s Board of Directors. John McKee, a former CEO of Amazon’s subsidiary Hall Foods Market, is a member of the Motory Fool’s Board of Directors. Suzanne Fly, an alphabet executive, is a member of the Board of Directors of Motry Fool’s Day. Geoffrey Seiler belongs to Alphabet. Motry Fool’s, ALPHABET, Amazon, Apple, Jeffiries Financial Group, Meta Platforms, Microsoft, NVIDIA, Oracle, and Tesla and recommend it. Motley Fool’s US Headquarters recommends Broadcom and recommends the following options: A 395 long call for Microsoft in January 2026 and a $ 405 shortcall for Microsoft for Microsoft for January 2026. Motley Fool’s Day has a disclosure policy.
