Investors should buy Alphabet (Goog) and Microsoft (MSFT), David Harden, president of Summit Global Investments, told Yahoo Finance recently.
On the other hand, Harden does not recommend buying NVDA stock yet. However, it is bullish on AI generally.
Why Harden is enthusiastic on Goog, MSFT
The alphabet produced $ 25 billion of free cash flow last quarter, and is growing by two -digit percentage levels year on year while its profit margins are “great,” Harden said. In addition, its valuation has become reasonable, and its reliance on the US for a large percentage of its revenue is positive as tariffs become a major factor in the economy, the investor argued.
Comparing MSFT with NVDA, Harden noted that MSFT is “safer than Nvidia, more exciting in our society, and its revenue more consistently.”
Harden does not recommend NVDA but is bullish on AI
Investors who own Nvidia should catch it, but there will be better times down the road to buy the stock, according to Harden.
On AI, Harden reported that the technology continues to multiply, and expects that trend to continue. He recommended that investors should seek to buy “industrial” technology names to exploit the final trend.
While we recognize the potential, our conviction lies in the belief that AI stocks are more promised for achieving higher returns, and to do so within a shorter timetable. There has been AI stock that has risen since the beginning of 2025, while popular AI stocks lose about 25%. If you are looking for AI stock that is more promising than Goog but trading at less than 5 times its earnings, check out our report for this Cheapest AI Stock.
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Disclosure: None. This article is originally published in Insider Monkey.