The Motley Fool·2025-12-18 01:30Group 1: Nvidia - Nvidia is currently the world's largest company with a market cap of nearly $4.3 trillion, requiring only a 16% increase in stock price to reach $5 trillion [3][6] - The company's future performance will be driven by rising artificial intelligence (AI) infrastructure spending, particularly from cloud computing companies [4] - Nvidia's GPUs are essential for AI workloads, supported by its CUDA software platform and NVLink interconnect system, creating a competitive advantage [6][7] - The stock is reasonably valued with a forward price-to-earnings (P/E) ratio of less than 24 and a price/earnings-to-growth (PEG) ratio near 0.6, indicating potential for growth [7] Group 2: Alphabet - Alphabet has a market cap of approximately $3.7 trillion and needs a 35% increase in stock price to reach $5 trillion [8][10] - The company is the most profitable globally, with a forward P/E of 27 and a PEG below 1, suggesting it is attractively valued [9][11] - Alphabet's cloud computing and AI businesses complement each other, providing a structural cost advantage through its custom tensor processing units (TPU) [11][12] - The company is expected to benefit from its Waymo robotaxi business and investment in SpaceX, contributing to its goal of reaching a $5 trillion market cap by 2026 [13]