The Motley Fool·2026-01-16 05:00Core Viewpoint - Nvidia is currently the most valuable stock globally with a market cap of $4.5 trillion, primarily due to its dominance in the AI chip market, but it may soon be overtaken by Alphabet, which is gaining traction in AI and is considered undervalued [2][3][12] Nvidia - Nvidia's market cap stands at $4.5 trillion, and its stock has seen a recent increase of 2.06% [2][8] - The company reported a 62% increase in sales for the October quarter, showcasing its strong growth [7] - Nvidia's gross margin is 70.05%, and it has a dividend yield of 0.02% [8] - The stock is trading at an estimated 24 times its future earnings, which is based on optimistic analyst projections [9] Alphabet - Alphabet's market cap is approximately $4 trillion, and its stock has risen over 70% in the past year, yet it is still considered undervalued compared to Nvidia [5][12] - The company has developed a competitive chatbot named Gemini, which is gaining recognition in the AI space [5][4] - Alphabet's gross margin is 59.18%, and it offers a higher dividend yield of 0.25% [11] - The stock is trading at around 30 times its forward earnings, indicating a higher valuation compared to Nvidia [9] Comparative Analysis - Alphabet is viewed as a safer investment due to its diversified business model, which may make it less vulnerable to market fluctuations compared to Nvidia [10][12] - If Alphabet's stock had not been underestimated in terms of its AI opportunities, it could have already surpassed Nvidia in market value [12] - The potential for Alphabet to overtake Nvidia as the most valuable company is anticipated as the year progresses [12]