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The Smartest $500 You Can Put to Work in AI Right Now Isn't Going Into Nvidia

Source: Motley Fool

2026-06-04 15:20:00 ET

Nvidia is often one of the first companies that come to mind when someone thinks of an artificial intelligence (AI) company. The once-mainly video game graphics company has become one of the most important AI companies in the world and is now the most valuable public company, with a market cap of over $5.4 trillion as of June 1.

Even with Nvidia's success and growth opportunities, it's not the smartest AI stock to invest $500 in right now. That would be Google's parent company, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) . Its returns for the year are identical to Nvidia's (both up over 18%), but what sets it apart as an AI stock is its full-stack approach.

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