Although many point to Nvidia (NASDAQ: NVDA) as the best artificial intelligence (AI) investment right now, I’m staying away from it. Because Nvidia is a hardware company, this strength will eventually fade, and investors will be stuck holding a stock valued for a business it no longer has.
Instead, a far better alternative to Nvidia is Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL), the parent company of Google. I’ve got four reasons why Alphabet will be a much better long-term investment today than Nvidia, and why its business is more sustainable.
1. Alphabet’s products are subscription-based
As mentioned above, Nvidia is a hardware company. Nvidia’s graphics processing units (GPUs) are the best in class for AI model training. However, once it sells the GPU, that’s it. Unless clients come back to build additional supercomputers or upgrade their system down the line, Nvidia’s sales are a one-time benefit.
Alphabet is a massive Nvidia GPU buyer, but it has set up a subscription model using these products. One of Alphabet’s most exciting segments is Google Cloud, its cloud computing division. By filling data centers with powerful Nvidia GPUs, clients who need access to extreme computing power can rent it from Alphabet. This allows these clients to stay asset-light and quickly scale up or down according to their needs. Because the revenue stream from this business is recurring, it’s far more sustainable.
Additionally, Alphabet has other AI products, like its generative AI model Gemini. This model beats the competition in multiple tests and will create a new revenue stream for Alphabet as it’s implemented into various programs.
While Nvidia’s one-time sales may provide flashy year-over-year growth figures in boom times, they’re not as sustainable as Alphabet’s subscription-focused approach.
2. Nvidia saw the first wave of AI benefits
Because Nvidia is a pick-and-shovel play, it saw the first wave of AI demand. With companies like Alphabet ordering thousands of GPUs to outfit their data centers, it experienced a sudden demand rush. It’s not advisable to invest in a company in the middle of a demand rush, as many lofty expectations are already baked into the stock.
While Alphabet has seen increased demand for cloud computing and generative AI, it’s in the early stages. This means the rush hasn’t happened for Alphabet yet, making me more excited to get into Alphabet’s stock before the big move comes along.
3. Alphabet’s stock is far cheaper than Nvidia’s
Another issue with Nvidia’s stock is how expensive it has gotten. With Nvidia’s price-to-earnings (P/E) ratio sitting at a much higher level than Alphabet’s valuation, it has a lot of expectations built in.
GOOGL PE Ratio Chart
Alphabet doesn’t have nearly the same hype around its stock and trades at about the same level as the broader S&P 500, which has a forward P/E of 20.
If Alphabet maintains its status quo, it will still be a market-beating stock. If Nvidia misses expectations, the bottom will fall out of the stock.
4. Alphabet is more balanced if AI fizzles out
Finally, Alphabet is far more diversified than Nvidia. If this AI trend turns out to be a bust (I don’t think it will be), then a large swath of Nvidia’s business will evaporate. This wouldn’t be the first time this has happened to Nvidia, as multiple crypto crashes have caused the company’s revenue to drop rapidly when demand fell.
Although many investors (including myself) are excited about Alphabet’s AI prospects, at the end of the day, nearly 80% of its revenue comes from advertising services. Advertising has been around for thousands of years and likely won’t fade away anytime soon.
So, regardless of how successful AI proliferation is, Alphabet should be fine.
To me, Alphabet is a much better investment right now than Nvidia. While Nvidia may see strength throughout the rest of 2024, it will likely eventually experience a drop in demand due to its non-subscription business model. If you like roller coasters, Nvidia may be a better stock, although you may never return to the highs you experience early on. But if you like a steady, market-beating ride, Alphabet is a far better pick.
Should you invest $1,000 in Alphabet right now?
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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
