Nvidia vs Alphabet: Which Stock Will Outperform in 2026?

Group 1: Nvidia - Nvidia's stock is up approximately 30% in 2025, driven by its dominance in AI infrastructure with its GPUs and a strong software moat through its CUDA platform [1][2] - The company's NVLink interconnect system enhances its GPUs' performance by allowing them to function as a unified powerful unit, preventing vendor mixing [3] - Nvidia is well-positioned for 2026 with increased data center capex spending from major cloud companies and the recent approval to sell its H200 chip to commercial Chinese customers [4] - The stock is attractively valued with a forward P/E ratio under 23 times 2026 estimates and a PEG ratio below 0.7, indicating it may be undervalued [5] Group 2: Alphabet - Alphabet's key advantage lies in its independence from Nvidia, having developed its own custom AI chips, which provides a cost advantage in cloud computing and AI model training [6] - The company is expected to continue strong growth in 2026 as AI infrastructure spending increases, benefiting from its proprietary technology [7]