Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

Alphabet Inc.

Key Points
Rigetti's sales fell 18% to less than $2 million in the most recent quarter.
Management doesn't anticipate meaningful sales for at least three years.
Rigetti's shares are beyond expensive.
There's no denying that some quantum computing stocks have delivered amazing returns for investors during the past few years. And Rigetti Computing (NASDAQ: RGTI) is a standout even among some of the most impressive gains, with the stock rising more than 2,400% since January 2023.
But as we all know, all that glitters is not gold. There are some very good reasons to avoid Rigetti right now, even as its stock price surges. Here are three of them.
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1. Rigetti has very little sales
One glaring issue with buying Rigetti stock right now is that the company has virtually no sales. Fine, to be fair, it had $1.9 million in revenue in the first quarter. But that was down 18% from the year-ago quarter. Falling sales for a so-called growth stock is a big red flag.
With such low sales, it shouldn't come as a surprise that Rigetti isn't profitable. The company reported a generally accepted accounting principles (GAAP) net loss of $201 million in Q3.
So, when can investors expect Rigetti to turn things around and start generating meaningful revenue? Not until three to five years from now. That estimate is straight from Rigetti Chief Executive Officer Subodh Kulkarni in comments from the company's Q1 2025 earnings call:
Really, the goal should be to get a quantum computer to Narrow Quantum Advantage. And that's really when commercial sales and sales in general start making sense. And we are talking at least three years from now, maybe four to five years from now.
That's a heck of a long time for investors to wait for meaningful revenue to materialize.
2. Its shares are incredibly overpriced
Even if you're a patient investor and you don't mind waiting for potential sales to materialize, it's important to point out that buying Rigetti right now while revenue is barely registering means you're paying an extremely high premium for the stock.
Rigetti's shares have a price-to-sales (P/S) ratio of 824 right now, which is far more expensive than the average tech stocks P/S ratio of just 9. It's not uncommon for tech growth stocks to be expensive, but their high cost almost always comes paired with fast-growing sales. Rigetti doesn't have that, which means investors are overpaying for virtually nothing right now.
3. Quantum computing is a very speculative market
Adding to the above two reasons investors should avoid Rigetti is the fact that quantum computing itself is a very speculative technology and is in no way guaranteed to deliver on its promises -- or in the time frame that companies hope it will.
Alphabet, which has developed its own quantum computing processor and recently launched a new quantum computing algorithm, has made some big strides in this area. But even with these impressive moves, Alphabet's management believes that "useful" quantum computing is still as much as 10 years away.
Until quantum computing companies, and Rigetti specifically, can prove that quantum computing is useful and can actually generate meaningful sales, buying Rigetti right now is essentially just placing a bet on an unproven technology.
That doesn't mean Rigetti isn't doing real work or working toward a viable product, but it does mean investors are overpaying for shares of a company with essentially no sales and a tech product that may or may not be ready for several years from now.
Even if it reaches its own goals, investors have no idea how much demand Rigetti's product will have or how it will measure up against the competition. Talk about speculative.
Should you buy stock in Rigetti Computing right now?
Before you buy stock in Rigetti Computing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rigetti Computing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 29, 2026.
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Up 2,400%, Should You Buy Rigetti Computing Right Now?

Key Points
TSMC's dominance in AI chip production should help the company beat earnings growth expectations this year.
Alphabet's AI chips are likely to unlock a major growth opportunity, paving the way for more stock upside.
Artificial intelligence (AI) infrastructure spending is on track to soar once again in 2026. Market research firm Gartner said it anticipates AI infrastructure spending will jump by nearly 42% this year to almost $1.4 trillion. That isn't surprising as major hyperscalers, AI companies, and chipmakers have been ramping up their investments in foundational infrastructure, such as data centers.
That means now is a good time to take a closer look at a couple of AI infrastructure stocks expected to win big from this massive outlay in 2026.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Taiwan Semiconductor Manufacturing: The prime pick-and-shovel AI infrastructure candidate
Semiconductors are the foundational building blocks of AI, making Taiwan Semiconductor Manufacturing (NYSE: TSM) one of the best ways to benefit from the massive AI infrastructure spending in 2026.
Popularly known as TSMC, it is the go-to manufacturer of chips that power AI data centers. Chip designers like Nvidia, Broadcom, Qualcomm, AMD, Marvell Technology, and even Intel have been tapping TSMC's foundries for their chip manufacturing. So, it doesn't matter which of these companies wins or loses market share in their respective markets; TSMC is going to be the ultimate winner of the huge AI infrastructure investment this year.
This is also evident from the company's guidance for 2026. TSMC CEO C.C. Wei remarked on the company's recent earnings call that its revenue is on track to increase by nearly 30% in 2026. That would be an improvement over the 25% revenue growth TSMC clocked in 2025. Moreover, TSMC's earnings growth should also accelerate this year, considering the increase in prices of its chips.
Third-party reports suggest that TSMC could increase the price of its advanced chip nodes, which are in hot demand to handle AI workloads in data centers and consumer devices, by 3% to 10% this year. Additionally, the company's most advanced 2-nanometer (nm) chips, which have just gone into mass production, have reportedly been priced at a 10% to 20% premium over the previous flagship process node.
As a result, TSMC's earnings growth in 2026 could be much better than the 34% increase that analysts anticipate. Its bottom line jumped by 51% last year, and it won't be surprising to see this semiconductor stock replicate such growth in 2026 on the back of robust AI chip demand and the price hikes discussed above.
So, TSMC seems primed for another year of outstanding gains, making this stock an ideal investment for anyone looking to capitalize on the AI infrastructure market's growth.
Alphabet: AI chips could unlock a new source of growth for the tech giant
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is primarily known for its advertising and cloud computing business, but the tech giant is poised to make a big splash in the AI infrastructure market as well. That's because key AI companies are reportedly looking to deploy Alphabet's Tensor Processing Units (TPUs) in their data centers to process AI workloads.
In October last year, Google announced a deal with Anthropic, an AI company known for its popular Claude family of large language models (LLMs), to deploy up to 1 million units of its custom TPUs for the latter. Anthropic pointed out in its press release announcing the partnership that the "expansion is worth tens of billions of dollars and is expected to bring well over a gigawatt of capacity online in 2026."
What's worth noting is that it costs around $50 billion to build a 1 gigawatt (GW) data center, and 70% of that cost reportedly goes toward the chips powering the data center. Alphabet, therefore, could see a significant increase in its revenue in 2026 by supplying its chips to Anthropic.
However, Anthropic isn't the only potential customer for Alphabet's AI chips. According to a Bloomberg report released in November last year, Meta Platforms is reportedly in talks to deploy Google's TPUs in its AI data centers in a deal that could be worth billions. Morgan Stanley estimates that Alphabet could see an 11% increase in revenue and a 3% increase in earnings per share for every 500,000 TPUs that it sells.
So, earnings for this Magnificent Seven stock could jump even higher this year than the 7% increase that analysts expect, especially considering that Alphabet could attract more customers following the recent wins that it announced in AI chips. That could pave the way for more upside in Alphabet stock following the healthy gains of 65% it saw in the past year.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 29, 2026.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Intel, Meta Platforms, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom, Gartner, and Marvell Technology. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: These 2 AI Stocks Will Be the Biggest Winners From $1.4 Trillion Infrastructure Spending

Key Points
Apple stock is cooling off after a rapid run-up in the second half of last year.
A Gemini-powered Siri upgrade could come in February.
Apple shares are far from cheap.
Less than one month into the new year, Apple (NASDAQ: AAPL) is already down 8.8% year to date at the time of this writing, compared to a 1% gain in the S&P 500 (SNPINDEX: ^GSPC).
That makes Apple the second-worst-performing component of the Dow Jones Industrial Average.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Here's what's driving the sell-off, and if the mega-cap tech stock is a buy now.
Context is key
Always take context into account when evaluating a stock's performance within a specific window, such as year to date or a year.
Apple sold off in the first half of 2025 due to tariff-related fears of eroding margins that never came true. The stock then gained 32.5% in the second half of the year. So heading into 2026, the company had added more than $1 trillion in market cap in a matter of months.
The stock is still up big over the last seven months, even when factoring in its pullback so far this year. It's up to investors to decide how much of the gain is warranted.
Apple is making a splash with AI
On Jan. 12, Alphabet and Apple published a joint statement announcing the integration of Google's Gemini models and cloud technology into the next generation of Apple Foundation Models. Reports indicate that a Gemini-powered version of Siri could come as soon as February.
Having a voice-controlled artificial intelligence (AI) assistant is a brilliant move on Apple's part. Manually-controlled AI functionality may be off-putting to some users, but narrating commands to an assistant could make AI more approachable for users who aren't tech savvy. It's also a good way for the company to gradually phase in AI rather than launching big, overwhelming upgrades.
Apple is known for taking its time with product launches, which is something long-term investors can appreciate. Instead, it aims to maximize the overall impact of a product or a product line's life cycle.
And that was certainly the case last year with the iPhone 17, which featured significant improvements in its camera, processing, and design but lacked the AI showstopper that some investors wanted.
Still, the iPhone 17 came out in September 2025, and investors cheered strong demand and a return to meaningful earnings growth, which Apple had been lacking for years.
Fundamentals are improving
As you can see in the following chart, Apple's earnings soared during the pandemic as consumers shifted purchasing from services to products, but then stagnated. Its recent results have given its earnings and operating margins a much-needed jolt.
Apple's product revenue grew 4.1% in fiscal 2025, and services revenue jumped 13.5%.
For the fiscal year, products raked in a highly impressive 36.8% gross margin, but services were even better at 75.4%. And with services now making up 26.2% of total sales, margins could continue to expand.
Overall, Apple's results have been solid. And that's without factoring in the growth potential of what is likely to be a big calendar year for the company with AI-powered software upgrades and an iPhone purpose-built for AI integration, which may also feature its first-ever foldable design.
Higher-end versions of the iPhone 18 are expected to be powered by Taiwan Semiconductor Manufacturing's 2-nanometer chips, which will make it by far the most expensive iPhone ever, but will also drastically improve processing and battery life.
Apple's valuation is elevated
With earnings growth and margins improving, the stock may become more appealing to growth investors. But its valuation is expensive, given that analyst estimates have the company growing earnings by only 10.3% in fiscal 2026 and 10.5% in fiscal 2027.
Even after its recent sell-off, Apple has a 30.9 forward price-to-earnings ratio (P/E) -- which is more expensive than Amazon, Alphabet, Microsoft, and Meta Platforms. Even Broadcom, which is growing at a breakneck pace and is also high-margin, has a 31.6 forward P/E. And Nvidia -- which converts over half of its revenue into after-tax net income and is also growing at a breakneck pace -- has a forward P/E under 40.
I would choose every stock in that chart over Apple because they all have strong competitive moats and more attractive valuations relative to their growth potential. Another distinct difference between Apple and other major tech stocks is its business model.
Apple is heavily dependent on consumer spending. In fiscal 2025, it demonstrated remarkable resilience in its core North American market, and strong growth in Europe and Asia (outside of China).
But China sales declined, and it remains to be seen if U.S. consumers will continue paying higher prices for Apple's AI-integrated devices, especially given that the cost of living continues to outpace wage growth. By comparison, big tech companies that rely mainly on business-to-business sales aren't as sensitive to weakness in consumer spending.
Keep Apple on a watch list (for now)
Apple is a decent stock to buy in 2026, but it's not all that compelling. Investors can buy a high-octane growth stock like Broadcom for a similar valuation, or get far more balanced earnings growth from Microsoft, or high margins and solid earnings from Meta at a far less expensive valuation.
The slower a company's earnings growth, the more critical you should be of its valuation. And in Apple's case, it's somewhere between a tech stock and a consumer-facing company.
In terms of consumer-facing companies, I would much rather buy high-yield dividend stocks like Coca-Cola and Procter & Gamble, which are passive-income powerhouses at far more attractive valuations than Apple.
That said, investors who believe in Apple's ability to capitalize on AI may still want to consider buying Apple now. And if there is a sell-off in AI stocks or a pullback in hyperscaler spending on AI, I would expect Apple to hold up far better than companies that have been pouring capital into long-term AI investments. Apple has an impeccable balance sheet and consistently generates gobs of free cash flow, which it uses to buy back stock and invest in long-term projects.
In sum, there are worse ideas than buying Apple after its latest pullback, but it's not a screaming buying opportunity by any means.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 29, 2026.
Daniel Foelber has positions in Nvidia and Procter & Gamble and has the following options: short February 2026 $150 calls on Procter & Gamble. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Salesforce, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Apple Is the Second-Worst-Performing Dow Jones Stock So Far in 2026. Is the Sell-Off a Buying Opportunity?

Key Points
Amazon and Uber have delivered substantial returns since January 2023, but former hedge fund manager Jim Cramer says it's not too late to buy the stocks.
Amazon is not only using artificial intelligence to drive revenue growth in its cloud computing business, but also to make its retail operations more efficient.
Uber runs the largest ride-sharing platform in the world, which means it is uniquely positioned to help autonomous driving companies brings robotaxis to market.
Since January 2023, Amazon (NASDAQ: AMZN) shares have increased 190%, while Uber Technologies (NYSE: UBER) shares have increased 230%. But CNBC's Jim Cramer, a former hedge fund manager who earned returns of 24% annually over 14 years, recently said both stocks are still worth buying.
Here are the important details.
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1. Amazon
Amazon has a strong presence in three big industries. It operates the largest e-commerce marketplace in North America, Western Europe, and the Middle East. It is the third largest ad tech company in the world. And Amazon Web Services (AWS) is the largest cloud services provider as measured by infrastructure and platform services spending.
Leadership in cloud computing is particularly important because it means AWS is ideally positioned to benefit as demand for artificial intelligence (AI) infrastructure increases. CEO Andy Jassy recently told analysts, "AWS is where the preponderance of companies' data and workloads reside, and part of why most companies want to run AI on AWS."
AWS has doubled down on the opportunity by developing custom AI accelerators for training and inference, which provide customers with an alternative to Nvidia GPUs. The company has also positioned itself as the primary cloud provider for Anthropic, an AI startup valued at $350 billion. Finally, AWS has introduced new cloud services such as Bedrock for generative AI application development.
Elsewhere, Amazon is using AI to make its retail business more efficient. It has designed more than 1,000 generative AI applications to improve inventory placement, demand forecasting, last-mile delivery, and customer service. It has also developed an AI model that lets robots navigate warehouses faster, and it's designing another model that will let human workers engage robots in natural language.
Wall Street expects Amazon's earnings to increase at 18% annually over the next three years. That makes the current valuation of 35 times earnings look relatively reasonable, especially because the company beat the consensus earnings estimate by an average of 25% over the past eight quarters. I agree with Jim Cramer. Patient investors should feel comfortable buying a position in Amazon today.
2. Uber Technologies
Uber operates not only the largest ride-sharing platform in the world, but also one of the largest food delivery platforms. Integrating those services into a common mobile app lets Uber efficiently acquire new customers by cross-promoting its mobility services to delivery users and its delivery services to mobility users.
While not a traditional AI stock, Uber uses machine learning to efficiently match and route drivers, provide customer support, and personalize advertising. In addition, leadership in ride-sharing makes Uber the perfect partner for autonomous vehicle (AV) companies that want to scale a robotaxi businesses.
Uber already works with 20 AV companies. CEO Dara Khosrowshahi says, "Uber can deliver the lowest operational costs for our AV partners because we are leaps and bounds ahead on every aspect of the go-to-market capabilities that are critical for commercialization." Some of the most consequential partnerships are:
Alphabet's Waymo offers robotaxi rides through Uber in Phoenix; Austin, Texas;, and Atlanta.
Avride offers robotaxi rides through Uber in Dallas.
WeRide offers robotaxi rides through Uber in the United Arab Emirates (Abu Dhabi, Dubai) and Saudi Arabia (Riyadh). The companies plan to add about 15 more cities in the next five years.
Nvidia provides hardware, sensors, and software through its Hyperion platform that Uber partners, including Stellantis, use to build AVs. Uber aims to deploy 100,000 robotaxis within a few years.
Straits Research estimates that the ride-sharing market will grow at 21% annually through 2033, and Grand View Research estimates the robotaxi market will grow at 99% annually over the same period. Uber should be a major beneficiary in both cases. Morgan Stanley analysts think the company will account for 22% of U.S. robotaxi trips by 2032, which would put it in third place behind Waymo and Tesla.
Wall Street expects Uber's earnings to increase at 26% annually over the next three years. That makes the current valuation of 10 times earnings look cheap, especially when Uber beat the consensus earnings estimate in six of the past eight quarters. Investors with a time horizon of at least three years should buy a position today.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 29, 2026.
Trevor Jennewine has positions in Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Nvidia, Tesla, and Uber Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Jim Cramer Says Buy 2 AI Stocks Up 190% and 230% Since Early 2023

For Immediate Release
Chicago, IL – January 29, 2026 – Today, Zacks Investment Ideas feature highlights Apple AAPL and Alphabet GOOGL.
Can Apple Shake Off AI Struggles?
This week’s reporting docket is headlined by many notable companies, a list that includes beloved Mag 7 member Apple. Shares have had a negative showing in 2026 so far, down roughly 5% and underperforming relative to the S&P 500.
But can the tech titan’s results push some life back into shares? Let’s take a closer look at revisions and a few other key metrics to keep an eye on.
Revisions Show Positivity
The EPS outlook for the tech titan has remained stable and positive over recent months, with the current Zacks Consensus EPS estimate of $2.65 up 1.1% since the beginning of last November. Sales revisions have followed a similar path, with the $137.4 billion consensus estimate up 1.2% over the same period.
As shown below, the company’s top line has shown steady improvement over recent years, with its high-flying growth days largely behind it. The stock commonly reflects a ‘safer’ tech play given its size and maturity, partly explaining why it generally trades at rich valuation multiples despite not posting outsized growth. Shares currently trade at a 30.0X forward 12-month earnings multiple, reflecting a 30% premium relative to the S&P 500.
Key Apple Metrics to Watch
A key metric to watch in the release is Apple’s Services results, which have regularly been robust and reached record levels throughout recent periods. Apple’s Services segment represents all the recurring, non-hardware revenue tied to its ecosystem, such as Apple Music, Apple Pay, App Store, and Apple TV+, for a few examples.
Our consensus Services estimate stands just at $30.0 billion, reflecting a 14% YoY climb. Below is a chart illustrating AAPL’s Services revenues on a quarterly basis, with our consensus estimate also blended in.
Keep in mind that Alphabet and AAPL announced a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google's Gemini models and cloud technology.
Notably, AAPL has yet to have its big AI moment. The reaction to Apple Intelligence so far has been mixed at best, with several highly anticipated features, like an improved Siri, delayed during the initial rollout.
We’ll undoubtedly hear a lot about the collaboration during theearnings call especially given the current sentiment surrounding its AI ventures. Of course, this leads back to iPhone sales, which we forecast to reach $77.6 billion throughout the period. The iPhone still remains the largest sales contributor, but the Services segment’s growth has helped reduce the reliance on this critical segment.
Below is a chart illustrating the company’s iPhone sales on a quarterly basis, with our consensus estimate also blended in. iPhone sales spike during the period due to the September launch.
Bottom Line
Beloved Apple is gearing up to reveal its next set of quarterly results this week, with many other notable companies slated to report.
Analysts have kept their revisions positive and stable, a key development heading into the release. While shares are a bit rich, the company has historically traded at a steep multiple given its consistent and cash-generating nature. Below is a chart illustrating its free cash flow on a quarterly basis.
Investors should keep a close eye on commentary surrounding the recent deal withAlphabet given its weak AI story so far, with iPhone and Services results also reflecting key metrics.
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Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Investment Ideas feature highlights: Apple and Alphabet

Key Points
CHAT charges a much higher expense ratio but has delivered a stronger 1-year return
XLK is far larger and more diversified within the technology sector, while CHAT tilts toward generative AI and applies an ESG screen
CHAT has exhibited higher volatility and a deeper recent drawdown, reflecting its concentrated and thematic approach
The State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) stands out for its scale and broad technology exposure, while the Roundhill Investments - Generative AI & Technology ETF (NYSEMKT:CHAT) takes a narrower, actively managed approach with higher costs and a thematic AI focus.
Both the State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK) and the Roundhill Investments - Generative AI & Technology ETF (NYSEMKT:CHAT) target the technology space, but their strategies and risk profiles differ. XLK offers diversified exposure to the largest U.S. tech names, while CHAT zooms in on generative artificial intelligence and related themes, actively picking stocks it believes will benefit most from this trend. This comparison unpacks their differences in cost, performance, holdings, and risk to help investors see which may better fit their goals.
Snapshot (cost & size)
Issuer
SPDR
Roundhill Investments
Expense ratio
0.08%
0.75%
1-yr return (as of 2026-01-27)
30.91%
63.06%
AUM
$92.48 billion
$995.24 million
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
CHAT’s expense ratio is meaningfully higher than XLK’s, making XLK the more affordable option for cost-conscious investors.
Performance & risk comparison
Max drawdown (2 y)
-25.65%
-31.35%
CHAT’s recent returns have outpaced XLK, but this comes with higher risk. Its larger drawdown and elevated beta signal greater volatility, which could be a trade-off for investors drawn to its AI focus.
What's inside
CHAT is an actively managed fund with 52 holdings and a mandate to capture the growth of generative artificial intelligence. The portfolio leans heavily into technology (85%), with smaller allocations to communication services and consumer cyclicals. Its top holdings include Alphabet Inc (NASDAQ:GOOGL), NVIDIA Corp (NASDAQ:NVDA), and Microsoft Corp (NASDAQ:MSFT), and the fund applies an ESG screen. At 2.7 years old, it is relatively new and intentionally concentrated around the AI theme.
XLK, by contrast, offers broad technology sector exposure with 70 holdings, covering nearly the entire U.S. tech landscape. Its top positions are Nvidia Corp (NASDAQ:NVDA), Apple Inc (NASDAQ:AAPL), and Microsoft Corp (NASDAQ:MSFT), reflecting the sector’s giants. XLK does not apply an ESG screen or thematic tilt, providing a more traditional approach to tech investing.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Many investors reach for AI funds expecting broad tech exposure, without realizing how much concentration they are taking on. That distinction sits at the heart of the decision between the Technology Select Sector SPDR Fund and the Roundhill Generative AI and Technology ETF, two funds that live in the same sector but reflect very different views on how to capture growth.
XLK is built as a core holding and offers broad access to the largest U.S. technology companies through a low-cost and rules-based structure. It spreads risk across established leaders whose earnings power drives long-term returns. CHAT takes a much narrower approach. It actively selects companies tied to generative AI and concentrates capital around a single theme. The trade-off is straightforward: XLK prioritizes scale and liquidity, while CHAT prioritizes thematic focus and the potential of outsized gains when AI enthusiasm runs hot.
For investors, XLK suits you if you are looking for steady exposure to tech without tying outcomes to a single narrative, while CHAT fits investors who are intentionally seeking AI exposure and willing to accept sharper swings and higher costs. The choice ultimately comes down to whether you want tech exposure anchored in broad earnings power or tied to continued confidence in a single trend.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 950%* — a market-crushing outperformance compared to 197% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of January 29, 2026.
Eric Trie has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XLK vs. CHAT: Broad Tech Exposure or a Focused AI Bet?

Key Points
Broadcom’s stock has surged 2,620% over the past decade.
Its AI chip business is growing like a weed.
It’s networking, optical, and infrastructure software segments complement that growth.
As the artificial intelligence (AI) market expands, more companies are upgrading their data centers to handle the skyrocketing usage of AI applications. According to Fortune Business Insights, the global AI infrastructure market will expand at a CAGR of 29.1% from 2025 to 2032.
What's the best chip play on the AI infrastructure boom?
One of the simplest ways to profit from that secular boom is through Broadcom (NASDAQ: AVGO), which produces custom application-specific integrated circuits (ASICs) for processing AI tasks. When installed at scale, these chips can process AI inference tasks at a more cost-efficient rate than Nvidia's (NASDAQ: NVDA) data center GPUs.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Many hyperscalers -- including Alphabet's Google and Meta Platforms -- are installing Broadcom's custom AI accelerators to reduce their dependence on Nvidia's data center GPUs. Broadcom also bundles those chips with its own networking switches, optical equipment, and infrastructure software to help those tech giants efficiently expand their data centers.
In fiscal 2025 (which ended last November), Broadcom's AI chip revenue rose 65% to $20 billion, accounting for 31% of its top line and offsetting the slower growth of its non-AI chips and infrastructure software business. From fiscal 2025 to fiscal 2028, analysts expect its revenue and earnings per share (EPS) to grow at CAGRs of 38% and 47%, respectively, as the AI market expands and its non-AI businesses stabilize in a warmer macro environment.
What are its upcoming catalysts?
Broadcom expects to generate $60 billion to $90 billion in annualized AI chip revenues by the end of fiscal 2027, with most of that growth coming from just three hyperscale customers. It will also sell more networking and optical chips for the broader AI market. At the same time, the stable growth of its infrastructure software business will offset the cyclical choppiness of its chipmaking business.
Over the past decade, Broadcom has acquired numerous companies -- including CA Technologies, Symantec's enterprise security division, and the cloud software giant VMware -- to diversify its business. It will likely continue to make bold acquisitions for the foreseeable future.
Broadcom's stock looks reasonably valued at 30 times next year's earnings, and it still has plenty of irons in the fire. It's not attracting as much attention as Nvidia, which generates most of its revenue from its AI data center GPUs. Still, it's a more diversified way to profit from the growth of the AI infrastructure market. Its forward dividend yield of 0.8% won't impress income investors, but its low payout ratio of 49% gives it plenty of room for future dividend hikes.
Should you buy stock in Broadcom right now?
Before you buy stock in Broadcom, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 28, 2026.
Leo Sun has positions in Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Could This Chip Stock Be the Best Way to Play the AI Infrastructure Buildout?

Nothing Ever Changes on Wall Street
Legendary stock speculator Jesse Livermore once said:
“There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in thestock market todayhas happened before and will happen again.”
I have discovered that, while history never repeats completely on Wall Street, it does tend to rhyme. By studying historical patterns, investors can gain a mental edge and perhaps even a roadmap if proven correctly. For instance, last year, I pointed out to Tech Innovator Investors the uncanny resemblance between Google’s (GOOGL) 2004 IPO U-turn base structure and CoreWeave’s (CRWV) 2025 IPO U-turn base. Each stock was in a hot industry group, was liquid, and had several bullish catalysts. CRWV would go on to mimic GOOGL’s 2004 performance and provide me with a juicy 118% in 2025.
Image Source: TradingView
Meanwhile, Paul Tudor Jones famously predicted the “Black Monday” crash of 1987 by using a 1929 overlay chart as precedent.
Is Oklo’s Chart Pattern Repeating?
Earlier, while scanning through charts, I made a fascinating discovery. Oklo (OKLO), a leader in the small modular reactor (SMR) nuclear space, is forming a near-identical pattern to April 2024. In 2024, the stock corrected in a zig-zag fashion (with the first leg being the longest), dropped ~70%, and then tagged its 200-day moving average before exploding higher. Currently, OKLO shares have created an identical zig-zag pattern, have corrected ~63.44%, and recently found support at the rising 200-day moving average.
Image Source: TradingView
While precedents are by no means a guarantee, the performance potential is undeniable. Following the April 2024 correction, OKLO shares would scream higher from ~$17 to nearly $200 a share!
Data Centers are Moving Off the Grid (Bullish for SMRs)
President Donald Trump recently said that he will not allow big tech companies to drive consumer electric prices higher. In other words, tech giants who are building energy-hungry data centers will need to supply their own power. Already, tech leader Microsoft (MSFT) has pledged to make major changes to its energy consumption to ensure that taxpayers “do not pick up the tab” for data center power. Meanwhile, 33% of planned data centers will not use the grid, and this number will only grow (a positive for OKLO0.
Image Source: Michael Thomas
OKLO: Mega Deals in the Pipeline
Oklo recently received validation of its nuclear ambitions after signing a major deal with Meta Platforms (META) to develop a 1.2 GW energy campus.
Bottom Line
Technical patterns tend to repeat on Wall Street. Nuclear power leader OKLO has a near-identical pattern to its 2024 surge. However, this time, it has even more catalysts.
Quantum Computing Stocks Set To Soar
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

OKLO: Deja vu? (An 11x Return Last Time this Occured)

Key Points
Nvidia held a near-monopoly on high-end AI training hardware.
Nvidia will inevitably lose market share in the AI chip industry as more companies develop their own.
Alphabet has shown that AI tools haven't had a noticeable negative effect on its Google Search business.
The "Magnificent Seven" stocks got their name by being seven of the best-performing and dominant tech companies in the world. Unfortunately, most of the companies had a less-than-magnificent 2025.
Five of the companies underperformed the S&P 500's 16.4% returns, with the two exceptions being Nvidia (NASDAQ: NVDA) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). They finished 2025 up 38.9% and 65.4%, respectively.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Considering their impressive recent gains, are they buys for this year? For long-term investors, there's a clear answer.
Making the case for Nvidia
Nvidia is the world's most valuable public company with a market of more than $4.5 trillion (as of Jan. 23). Its historic growth can all be traced back to the current artificial intelligence (AI) gold rush.
Nvidia's graphics processing units (GPUs) have become a critical part of the AI pipeline because they can handle the processing needed to train and run AI models. The company essentially had a monopoly on high-end AI training hardware for a while, and both its stock price and earnings have shot up because of it.
Nvidia has solidified itself as the leader of the hardware side of AI. If companies keep their plans to continue building out their AI infrastructure, Nvidia will remain one of the biggest beneficiaries. It will inevitably lose some dominance as companies like Amazon and Alphabet begin designing their own chips, but it's not easy for customers to change providers.
Trading at 38 times its projected earnings over the next year (second-highest in the Magnificent Seven behind Tesla), Nvidia isn't cheap. But if you're a long-term investor, consistently building a stake in Nvidia is a smart move. Just expect the inevitable volatility along the way.
Making the case for Alphabet
There were concerns that generative AI tools like ChatGPT could cut into Alphabet's business as people relied more on those tools for answers versus searching on Google. So far, though, Alphabet is proving that it's not an issue.
Instead of losing search dominance, Alphabet has been effective at integrating AI into its Search business and enhancing (in most cases) the experience. People's search habits could evolve, but so far, that's an encouraging sign.
Alphabet's Google advertising business is self-explanatory and continues to be its bread and butter (more than 72% of total revenue in the third quarter). However, its cloud business continues to look promising. It has been Alphabet's fastest-growing business in recent quarters.
Google Cloud will likely remain behind Amazon Web Services and Microsoft Azure in market share for the foreseeable future, but it's in a good spot to capture a decent amount of the growing demand for cloud services. Add in the fact that Alphabet has its own data centers and is developing its own chips, and the company has a good path to a fully functional in-house AI stack.
Alphabet is a buy this year and going forward.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 28, 2026.
Stefon Walters has positions in Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Only 2 "Magnificent Seven" Stocks Outperformed the S&P 500 in 2025. Are They Both Buys for 2026?

The Securities and Exchange Commission recently approved a Nasdaq proposal that will give options traders more flexibility and control over their investments on Qualifying Securities.
Nasdaq’s proposal introduced Monday/Wednesday expiration dates for options on a list of Qualifying Securities, which include the Magnificent Seven stocks -- Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) -- as well as Broadcom (AVGO) and the iShares Bitcoin Trust ETF (IBIT).
With the SEC’s greenlight on Jan. 26, Nasdaq can now list options expiries for these securities on Mondays and Wednesdays, in addition to their typical Friday expirations. Single-stock options have typically been limited to Friday expirations, with an exception for certain ETFs such as the SPDR S&P 500 ETF (SPY), Invesco QQQ (QQQ) and iShares Russell 2000 ETF (IWM), which trade with daily expiries.
David Barrett, Nasdaq’s Head of U.S. Options Product Strategy, sat down with the Nasdaq Newsroom to discuss these changes and the benefits it affords to market participants.
Q&A with David Barrett, Nasdaq’s Head of U.S. Options Product Strategy
Nasdaq Newsroom: Before this new SEC approval, what was the previous state of play when it comes to expiries?
David Barrett: Previously, there were eight instruments that were allowed to trade intra-week expirations. Expiries on the SPY, QQQ and IWM, which are the index ETFs, could trade every day. Additionally, the GLD, which is the gold ETF, the SLV, the silver ETF, and the TLT, the 20-year Treasury ETF, traded on Monday and Wednesday expirations along with the regular Friday expirations. ETFs on oil futures (USO) and natural gas (UNG) traded on Wednesday and Friday expirations. All other contracts traded on Friday expiries on either a weekly or monthly cadence.
Nasdaq Newsroom: Why have Friday expiries been the norm?
David Barrett: It used to be that expirations were only quarterly occurrences. Then, some of the more heavily traded options went to a monthly cadence, and for those that retained a quarterly cadence, they were around their underlying’s earnings dates, so the expiries would generally encompass the earnings date. Weekly expiries started to appear in the 2010s, and the Monday-Wednesday-Friday cadence for SPY and QQQ — heavily liquid ETFs — kicked off around 2016.
In terms of why Friday (as opposed to another day), a lot of it had to do with the historical structure. Clearing processes needed to take place over a weekend because computer processes weren’t as fast.
Nasdaq Newsroom: How does the recently approved change benefit investors?
David Barrett: There's a whole host of reasons.
First, it’s just a clear investor preference — [traders] do prefer to trade in shorter-dated options. Every time there's been a shorter-dated option listed, the volumes have spiked in that. It has not cannibalized the other volumes too.
Second, options that are shorter dated tend to be more efficiently priced. When you think about any insurance instrument, the bigger the time window, the more potential there is for an untoward outcome, and so market makers have to take that into account. Consequently, the prices tend to be a bit less efficient.
Nasdaq Newsroom: How did you pick which securities could participate in this expiry program?
David Barrett: We want to do this responsibly — we want to ensure that the most liquid securities are the ones that are traded this way and that there's always a competitive price for a retail investor. That's why we picked a stringent series of qualifications that a security had to meet to get into this program.
There were 4 qualifications that we filed with the SEC to become part of the program:
The first was a $700 billion market cap for a single stock, or $50 billion in assets under management for an ETF, on the last day of the prior quarter.
Qualification number two was that it has to have traded 10 million sides in the preceding month to the quarter end. So, in December, in March, in June, and in September, we're going to look to see if it traded 10 million sides.
Third, it has to have a 250,000-lot position limit, as listed on the OCC's website.
Finally, it has to be part of the Penny Interval Program. Certain options on stocks and ETFs that meet the Penny Interval Program eligibility requirements trade in minimum price increments of a penny. Other options on stocks and ETFs trade in minimum price increment of a nickel. There are about 300 options that trade in a minimum price increment of a penny.
Nasdaq Newsroom: What’s next for expiries?
David Barrett: The trend is always going to be towards instrument expansion, but we want to do it in a thoughtful way that maintains investor protection and market quality.
Customers are saying that they want risk profiles that are more defined to the short end of expirations. They probably want that in more securities than we're currently listing, so there could well be an expansion of this program at some point.
Again, it will be deliberate and it will be based on where real customer demand exists. And, no matter what, it will be done in such a way that we're acting responsibly for both our customers and our industry partners.
To learn more about the new options expirations, watch a recent webinar on the topic with Nasdaq Head of U.S. Options Sales Tanya Patwaa.
Options involve risk and are not suitable for everyone. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies may be obtained from your broker, one of the exchanges or The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, IL 60606 or call 1-888-OPTIONS or visit www.888options.com. An investor should review transaction costs, margin requirements and tax considerations with a broker and tax advisor before entering into any options strategy. Any strategies discussed are strictly for illustrative and education purposes and are not to be construed as an endorsement, recommendation or solicitation to buy or sell securities.

Indicator	TTM Median
P/E	24.75 16.40
Price/Sales	8.25 1.00
P/B	7.74 1.50
P/FCF	45.92 11.76

Indicator	TTM Median
ROE	34.31 12.87
ROA	24.88 5.13
ROI	32.90 7.65
Net Worth	3.03K 0.85
Quick Ratio	0.00 0.94
Current Ratio	1.90 1.22

Indicator	TTM Median
Net Profit Margin	31.12 10.24
Operating Margin	32.68 14.29
Gross Margin	58.94 55.77
Return on tangible equity	37.92 27.87

Indicator	TTM Median
EPS	2.31 0.25
EPS Forecast	2.15 0.21
Revenue	96.43B 89.00M
Gross Profit	57.39B —
EBITDA	36.27B —

Alphabet Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue