NVDA, CRM, or GOOGL: Which Tech Stock Is the Most Attractive Pick?
Tech stocks are battered due to tariff woes and macro uncertainties. Investors are concerned about trade wars leading to a potential recession. Despite a challenging backdrop, Wall Street remains bullish on several tech stocks that can withstand the ongoing headwinds to deliver solid returns over the long term. Using TipRanks' Stock Comparison Tool, we placed Nvidia (NVDA), Salesforce (CRM), and Alphabet (GOOGL) against each other to find the most attractive tech stock, according to Wall Street analysts.
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Nvidia (NASDAQ:NVDA)
Rattled by tariff wars and chip restrictions, Nvidia stock has declined more than 24% so far this year. The company recently announced a $5.5 billion charge related to exporting its H20 GPUs (graphics processing units) to China and other countries.
Nvidia stated that the U.S. government has informed the company that it would require a license to export the H20 chips to China and some other countries. Additionally, the company was informed that this license requirement would remain in effect 'for the indefinite future.'
While China is Nvidia's fourth-largest region by sales and the threat of tariffs and chip restrictions remains a major overhang, most analysts remain confident about the company's long-term growth potential and its innovation. The significant demand for Nvidia's GPUs in building and training AI models is expected to continue to drive the company's business.
Is NVDA Stock a Strong Buy?
Following Nvidia's disclosure of a $5.5 billion charge, Evercore analyst Mark Lipacis reiterated a Buy rating on NVDA stock with a price target of $190. Based on three case studies of previous disruptions due to chip issues and China restrictions, the 5-star analyst believes this development could play out similar to 2022, where next twelve months earnings estimates were initially cut, but then returned to trendline within a year.
Despite the ongoing challenges, Wall Street has a Strong Buy consensus rating on Nvidia stock based on 37 Buys and five Holds. The average NVDA stock price target of $169.30 implies about 67% upside potential from current levels.
Salesforce (NASDAQ:CRM)
Salesforce stock has declined 26% year to date. Aside from concerns about a slowdown in spending due to macro pressures, the customer relationship management (CRM) software provider's weak full-year revenue guidance has impacted investor sentiment.
Like several other companies, Salesforce is also trying to boost its revenue by enhancing its offerings through generative AI features. In February, the company launched the latest version of its flagship AI offering, Agentforce.
While those bullish on CRM stock see Agentforce as a major growth catalyst that is expected to drive future growth, some analysts are skeptical if the company's optimism about its prospects in the agentic AI space is worth the hype.
Is CRM a Good Stock to Buy Now?
Earlier this month, Truist Securities analyst Terry Tillman reiterated a Buy rating on Salesforce stock with a price target of $400. In his research note, the 4-star analyst highlighted the prospects of Salesforce Industries, which represents a wide array of vertical solutions addressing complex industry processes and workflows. The analyst noted that this unit often commands premium pricing and represents a more dynamic area of new business for the company.
Tillman said he is optimistic about the resilient growth of Salesforce Industries despite the deteriorating macro backdrop.
With 31 Buys, nine Holds, and one Sell recommendation, Wall Street has a Moderate Buy consensus rating on Salesforce stock. At $373.53, the average CRM stock price target implies 51% upside potential.
Alphabet (NASDAQ:GOOGL)
Alphabet, the parent company of Google, faced a setback last week when a federal judge ruled that the search engine giant held illegal monopolies in online ad markets due to its position with ad buyers and sellers. This is the second major blow to the company following an August 2024 ruling that determined that Google held a monopoly in the internet search market.
The latest adverse ruling comes as the company is already under pressure due to the emergence of generative AI rivals, such as OpenAI's ChatGPT, and concerns about a slowdown in ad spending due to macro uncertainties and tariff wars.
Amid the regulatory overhang, Google is scheduled to announce its Q1 2025 results on April 24. Analysts expect the company to report EPS of $2.01, reflecting a 6.3% year-over-year growth. They expect revenue to rise 11% to $89.2 billion.
Is GOOGL Stock a Buy or Sell?
Bank of America analyst Justin Post reiterated a Buy rating on GOOGL stock with a price target of $185. The 5-star analyst noted the judge's ruling that Google maintained monopolies in both the publisher ad server and advertiser ad network markets. That said, the judge emphasized that the U.S. Department of Justice (DOJ) had failed to demonstrate that Google's advertiser tools or acquisitions of DoubleClick and AdMeld were anti-competitive.
Post contends that despite the possibility of behavioral or structural remedies, the potential financial impact on Alphabet's earnings may be 'modest,' given that the segment at risk, Google Network, generated revenue of $30 billion in 2024, or under 9% of Google's gross revenues and just 3% of net revenues. Further, Post thinks that any final remedy might be stayed during the appeal, which could take 18 months, potentially delaying any enforcement action until 2027 or later.
Heading into the Q1 results, Wall Street has a Moderate Buy consensus rating on Alphabet stock based on 27 Buys and 10 Holds. The average GOOGL stock price target of $196.94 implies 30.3% upside potential.
Conclusion
Wall Street is highly bullish on Nvidia but cautiously optimistic on Salesforce and Alphabet. Analysts see higher upside potential in NVDA stock compared to the other two tech stocks. Despite the ongoing challenges, most analysts covering Nvidia stock expect the company to gain from continued demand for its advanced GPUs in the AI space.
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