Investors who want the chance to score huge returns must start to at least consider looking at companies at the forefront of artificial intelligence (AI). This is shaping up to be a big technological shift, which means better growth prospects for certain businesses that can harness AI to their benefit.
To be clear, Nvidia, although a dominant enterprise, isn't the only way to play this secular trend. Here's a top AI stock that's ready for a bull run.
Image source: Alphabet.
This leading internet company is already ahead in the AI race
It's not really a surprise that Alphabet (GOOGL 1.67%) (GOOG 1.75%), a top internet company, is also leading the AI charge. With data and unrivaled tech expertise underpinning its competitive position, the business will keep succeeding.
Alphabet already leverages AI to improve its various user-facing apps. The Google Cloud Platform serves up AI products and services to commercial clients. Alphabet's ad customers also benefit, as AI capabilities enable more creative, impactful, and cost-effective campaigns.
Shares trade at a cheaper valuation than "Magnificent Seven" peers
Alphabet shares have risen 144% in the past three years (as of Oct. 9). However, the stock isn't done yet. It's set to continue beating the market over the next five years, in my view.
The stock provides investors with a good value. It trades at a price-to-earnings ratio of 25.6, which is cheaper than all of Alphabet's "Magnificent Seven" peers.
