American investment specialist media, The Motley Fool, has selected and revealed two stocks from the Magnificent 7 (Apple, Microsoft, Google Alphabet, Amazon, Nvidia, Meta, and Tesla) that you should buy in February.
According to The Motley Fool on the 24th, Nvidia and Amazon are included in this list.
Nvidia is one of the best-positioned stocks to capitalize on the growth of artificial intelligence (AI), with its stock price surging 239% over the past 12 months. The Motley Fool evaluated that Nvidia’s stock still holds attractive value compared to the growth of its basic business.
Industry experts are raising their annual sales estimates for the next few years for Nvidia, a GPU leader, even though growth expectations were already very high. The analysis is that the stock’s reasonable valuation still presents an attractive buying opportunity. It is currently trading at 35 times the consensus of next year’s expected earnings, which is considered reasonable considering Nvidia’s robust growth.
In particular, there are observations that a $1 trillion worth of data center infrastructure will drive Nvidia’s growth. Nvidia is generating trailing revenue of $32 billion in the data center sector. It holds about 80% of the market share in the AI chip market, providing investors with more growth and profit.
The Motley Fool evaluated Amazon as “a very solid company that generates profits for shareholders through various sources of income such as cloud services, advertising, and online retail sales.” It emphasized that “Amazon Web Services, the cloud business unit, is receiving the most attention on Wall Street, but the driver of the stock price rise is the improvement in growth in the e-commerce sector.”
The Motley Fool noted Amazon’s improvement in delivery speed. Last year, Amazon achieved the fastest delivery speed in history by delivering more than 7 billion items on the same or next day. It is currently focusing on increasing delivery speed, which is expected to make it more difficult for competitors to catch up.
Amazon is also focusing on strengthening its brand value. It has launched a new shopping assistant, Rufus, powered by generative AI, to encourage customers to visit Amazon.com instead of Google as their primary destination.
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