Quick Read
- Nvidia (NVDA) reported third quarter data center revenue of $51.2B and total revenue of $57.0B, up 62% year over year.
- Alphabet delivered its first $100B quarter with total revenue of $102.3B, up 16% year over year.
- Nvidia’s Blackwell chips are sold out through the end of the year despite competition from hyperscalers developing their own AI chips.
- If you’re focused on picking the right stocks and ETFs you may be missing the bigger picture: retirement income. That is exactly what The Definitive Guide to Retirement Income was created to solve, and it’s free today. Read more here
Artificial intelligence (AI) has been the biggest growth driver of the stock market in 2025. Despite the economic uncertainties, tariff concerns, and a government shutdown, AI stocks have remained at the top and led the stock market higher. Some of the biggest tech companies have seen their market capitalization swell and two of the biggest beneficiaries are NVIDIA Corporation (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOG). There’s a lot more to come in terms of AI growth, but if you have $75,000 and are wondering where to put it to work, here’s the better stock.
Nvidia Corporation
The face of the AI boom, Nvidia is a global leader with a market cap of $4.41 trillion. It has seen the valuation soar from $400 billion in 2022 to over $4 trillion today, and I still think the company has tremendous potential to grow. One of the most valuable stocks in the market, Nvidia has gained 30% so far in 2025 and is exchanging hands for $180.98.
Nvidia was once known for setting the gold standard in graphic processing units (GPUs), but it has become a leader for its AI products today. Its GPUs power major data centers and AI hyperscalers. It will soon launch the next generation Blackwell chips that will be more powerful and faster.
Nvidia has seen tremendous demand for its products, and Blackwell supply is already sold out through the end of the year. Its numbers speak for themselves. In the third quarter, the company reported data center revenue of $51.2 billion and a total revenue of $57 billion, up 62% year over year. The EPS stood at $1.30, amid growing demand for Blackwell and cloud GPUs.
However, all is not smooth sailing for the company. Nvidia faces competition from Advanced Micro Devices (NASDAQ: AMD) and Broadcom (NASDAQ: AVGO). Hyperscalers are looking to break away from Nvidia and are developing their own AI chips. That said, Wall Street thinks that the AI bubble could burst anytime soon. This could impact the stock and Nvidia’s revenue.
While the company may not be able to repeat the rally, it could continue the upward trajectory. Several analysts are bullish on the stock and expect an upside.
Alphabet Inc.
Alphabet has also seen impressive growth, driven by AI. Its valuation is $3.8 trillion and it has gone from $1.5 trillion in 2021 to over $3 trillion today. Alphabet is arguably best known for one of its top services, the Google search engine. It managed to report a double-digit growth across every segment of the business and delivered the first-ever $100 billion quarter.
Alphabet’s revenue stood at $102.3 billion, up 16% year over year. Its services revenue amounted to $87.1 billion, up 14% year over year, and the Google Cloud revenue jumped 34% to $15.2 billion. The cloud computing platform could see faster growth and higher demand. Its order backlog jumped 82% year over year to $155 billion in the third quarter.
Alphabet has launched its new Gemini 3 AI model, which is already recognized as one of the best in the industry. It has delivered a better performance than the leading models of OpenAI and Anthropic. Alphabet has designed its own data center chips for AI workloads and is using them to develop its new Gemini 3 AI model.
Warren Buffett is also bullish on the stock and bought a $4.9 billion stake in the third quarter. It is a sizeable investment in one quarter, and his total holding is 1.62%.
The company is not just profitable and large, but its growth is picking up speed, and we could see it reach a higher valuation in the coming years. Alphabet may never match Nvidia’s scale, but it is positioning itself as a major industry player and could compete with Nvidia.
Yes, Nvidia’s climb has been meteoric, while much of Alphabet’s growth came this year.
The verdict
You can choose to buy both the stocks and split $75,000 between the two AI companies. However, if you had to choose between the two, I think Alphabet has more upside here. Its valuation is lower than Nvidia’s, but it is more expensive than Nvidia stock. Alphabet’s business segments are growing at a double-digit rate, and it is going all in with AI investments. I think Alphabet is a better opportunity for growth than Nvidia.
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