Nvidia Is Expensive. Here Are 3 High-Yield Artificial Intelligence Plays That Aren't.

Nvidia (NASDAQ: NVDA) has been one of the early beneficiaries of the artificial intelligence (AI) megatrend. The company's semiconductors provide the computing power AI needs to thrive. That's driven up Nvidia's profit and its valuation. While Nvidia's stock has fallen more than 30% from its recent peak over concerns about Deepseek and tariffs, it's still expensive at nearly 35 times earnings. That's much higher than the S&P 500, which trades at about 21 times earnings. The good news for more value-conscious investors is that there are much cheaper ways to invest in the AI megatrend. Dominion (NYSE: D), NextEra Energy (NYSE: NEE), and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) stand out to a few Fool.com contributors as less expensive AI plays. Reuben Gregg Brewer (Dominion Energy): There are some reasons to dislike Dominion Energy, including a dividend cut a few years ago and the lack of dividend growth in recent years. However, this giant U.S. regulated utility is working toward a stronger balance sheet, a peer-consistent payout ratio, and a return to dividend growth. Helping to power the company's progress is its monopoly in Northern Virginia, one of the largest data center markets in the world.Continue reading

Apr 22, 2025 - 09:29

Nvidia Is Expensive. Here Are 3 High-Yield Artificial Intelligence Plays That Aren't.

Nvidia (NASDAQ: NVDA) has been one of the early beneficiaries of the artificial intelligence (AI) megatrend. The company's semiconductors provide the computing power AI needs to thrive. That's driven up Nvidia's profit and its valuation. While Nvidia's stock has fallen more than 30% from its recent peak over concerns about Deepseek and tariffs, it's still expensive at nearly 35 times earnings. That's much higher than the S&P 500, which trades at about 21 times earnings.

The good news for more value-conscious investors is that there are much cheaper ways to invest in the AI megatrend. Dominion (NYSE: D), NextEra Energy (NYSE: NEE), and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) stand out to a few Fool.com contributors as less expensive AI plays.

Reuben Gregg Brewer (Dominion Energy): There are some reasons to dislike Dominion Energy, including a dividend cut a few years ago and the lack of dividend growth in recent years. However, this giant U.S. regulated utility is working toward a stronger balance sheet, a peer-consistent payout ratio, and a return to dividend growth. Helping to power the company's progress is its monopoly in Northern Virginia, one of the largest data center markets in the world.