Consider These 2 Millionaire-Maker Stocks to Buy Instead

Nvidia (NASDAQ: NVDA) has made a lot of millionaires over the last year as its share price skyrocketed 225%. The company rallied investors as it became the poster child for a boom in artificial intelligence (AI), snapping up an estimated 90% market share in AI chips.

NVDA PE Ratio (Forward) Chart

However, the chart above shows that Nvidia’s meteoric rise has made it an expensive option compared to other tech stocks. Nvidia’s forward price-to-earnings (P/E) ratio and price-to-sales (P/S) ratio are significantly higher than the same metrics for Intel (NASDAQ: INTC) and Apple (NASDAQ: AAPL).

Forward P/E is calculated by dividing a company’s current share price by its estimated future earnings per share. Meanwhile, P/S divides its market cap by its trailing-12-month revenue. These are useful valuation metrics as they consider a company’s financial health alongside its share price.

For both, the lower the figure, the better the value. As a result, Intel and Apple are trading at a bargain compared to Nvidia.

So, forget Nvidia and consider these two millionaire-maker stocks instead.

1. Intel

Shares in Intel have risen more than 135% since it went public in 1971, creating plenty of millionaires along the way.

However, the company has hit a few roadblocks in recent years. Its stock is down about 45% over the past three years after seeing decreased market share in central processing units (CPUs) and the end of a partnership with Apple that lasted more than decade.

Intel responded to recent headwinds by introducing significant structural changes that could pay off in the coming years. Last June, Intel announced a “fundamental shift” to its business, adopting an internal foundry model that it believes will help it save $10 billion by 2025. This would see it adopt a model similar to Taiwan Semiconductor Manufacturing, becoming a major provider of foundry capacity in North America and Europe.

Moreover, Intel is moving into AI, a market valued at about $200 billion last year and projected to hit nearly $2 trillion by 2030.

In December 2023, the company debuted a range of AI chips,…

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