Core Viewpoint - The growth of tech stocks, particularly in the AI sector, is expected to continue into the new year, with companies like Nvidia leading the charge due to their AI accelerators [1][2]. Group 1: Alphabet - Alphabet, the parent company of Google, has been a pioneer in AI since 2001 and is perceived as a leader in the field, although its position was challenged by the emergence of generative AI technologies like ChatGPT [3][4]. - The company launched Google Gemini to compete in the generative AI space and reported that Google Cloud, a key component for AI workloads, generated 11billioninrevenueforQ32024,reflectinga3618 billion in AI initiatives over the past nine months, maintaining a strong liquidity position with 93billionavailableforfutureinvestments,anditsP/Eratioof23isthelowestamongthe"MagnificentSeven"stocks,indicatingapotentialvaluationdiscount[5].Group2:Alibaba−AlibabaisoneofthelargestcloudcomputingcompaniesgloballyandhasgainedtractionintheAIspace,launchingover100newAImodelsinSeptember,whichenhancecapabilitiesinvarioussectorsincludingautomotiveandscientificresearch[6][7].−Despitea433 billion) over the past nine years, suggesting that investors receive more value at a similar stock price compared to previous years [9]. - With a P/E ratio of 26, Alibaba stock is considered a bargain with potential for long-term growth [10]. Group 3: Uber Technologies - Uber Technologies utilizes AI primarily to predict rider demand and optimize pricing, which has improved customer satisfaction by reducing wait times [11]. - The company is focusing on autonomous driving technology through a partnership with General Motors' Cruise, which is crucial for its future growth [11][12]. - In Q3 2024, Uber reported 11billioninrevenue,a202.6 billion, significantly up from $221 million in the same quarter last year, despite a P/E ratio of around 79, the forward P/E ratio is more reasonable at 32, indicating continued investment potential [12][13][14].
BABA(BABA) The Motley Fool·2024-11-05 15:00