Nvidia and Alphabet Show Strong Long-Term Investment Potential

Nvidia and Alphabet are seen as leading stocks to invest in amid market fluctuations. Their substantial free cash flow, innovative strategies, and growth prospects position them well for future gains.

Date: 23-03-2025

AI Rating: 7

Free Cash Flow Analysis
Nvidia generated $60 billion in free cash flow last year, showcasing its ability to invest in future innovations, particularly in AI chip development. This substantial cash flow can enhance its competitive position and drive long-term growth.

Revenue Growth Potential
For Nvidia, revenue increased significantly, by 114% last year to $130 billion, due to rising demand for AI-powered graphics processing units (GPUs). The strong demand from cloud computing customers and new product pipelines indicate continued revenue growth, setting the stage for longer-term investment consideration.

Alphabet (Google) has also made strides, anticipating annual earnings growth at a rate of 16%, fueled by its robust cash reserves of $85 billion. The company reported $72 billion in free cash flow as well, allowing it to pursue ambitious acquisitions, such as the recent $32 billion all-cash deal for Wiz, which aims to enhance its cloud services offering further.

With Alphabet's cloud revenue growing at a faster rate than its traditional advertising revenue, the potential for this segment's continued expansion bodes well for its overall growth and stock performance moving forward.

Stocks: NVDA GOOGL