"Artificial intelligence (AI) stocks have roared higher in recent years, powering the S&P 500 to record high after record high. The reason for the enthusiasm? AI has the potential to save companies -- and individuals -- time and money, and it also may spur game-changing innovations like autonomous vehicles and better medical treatments. The companies that harness the power of AI early on could win big, and investors, recognizing this, have wanted to share in these future successes."
"All of this is fantastic, but there's been one downside to the story. And that's the fact that AI stocks have become more expensive. I have some good news for you, though. Two current and likely future AI winners are actually bargains today -- in fact, they're the two cheapest of the "Magnificent Seven" stocks today, and this, along with their solid businesses and AI aspirations may help them go parabolic. Let's check them out."
AI stocks have surged, driving the S&P 500 to repeated record highs. AI can save time and money and enable innovations like autonomous vehicles and improved medical treatments. Rising demand has made many AI stocks expensive, yet two Magnificent Seven members are currently bargains with solid businesses and AI aspirations. Alphabet is the second-cheapest Magnificent Seven stock, trading near 27 times forward earnings. Google holds over 90% of worldwide search, making advertising the company's main revenue source while Google Cloud, bolstered by AI, is rapidly growing. In the recent quarter Google advertising revenue rose about 12% to $74 billion and Google Cloud revenue grew 34% to $15 billion.
Read at The Motley Fool
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