I’d stop staring at the Nvidia share price and invest in AI via these 2 FTSE 100 stocks instead

The Nvidia share price has had an incredible year, but now I’d rather invest in artificial intelligence through these two UK tech stocks.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

British flag, Big Ben, Houses of Parliament and British flag composition

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The Nvidia (NASDAQ: NVDA) share price is a thing of wonder. This year’s US tech hero has been bombing along as investors decide it’s the best way to play the revolution in artificial intelligence (AI) and machine learning.

The New York-listed chip maker has rocketed 200.99% in 2023, with annual growth of 160.74%. It’s now a proud member of the trillion-dollar tech club, joining Apple, Microsoft, Google-owner Alphabet and Amazon.

Created with Highcharts 11.4.3Nvidia PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

I’ll stop staring now, because if I’d wanted Nvidia to triple my money, I should have bought it on 2 January when it opened at $146.14. At time of writing, its shares cost $430.65. And they trade at 223.92 times earnings, which looks a little toppy to me. 

Should you invest £1,000 in Dfs Furniture Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Dfs Furniture Plc made the list?

See the 6 stocks

For Nvidia to triple my money now it would have to grow into a $3 trillion company, and even Apple isn’t that big. I’m keen to play the AI trend so I’m pleased to find cheaper options much closer to home, highlighted by Nick Train, portfolio manager at the much-admired Finsbury Growth & Income Trust.

British artificial intelligence plays

The FTSE 100 has much less exposure to fast-growing tech stocks, but as Train points out: “Just because such winners are rare does not mean they are non-existent.”

Some 40% of his trust is allocated to the shares of UK-quoted data, analytics, software and platform service companies. They are Experian, Hargreaves Lansdown, London Stock Exchange Group, RELX and Sage Group

Train reckons all can harness the power of AI to enhance their own products and services. He picks out information and analytics firm RELX (LSE: RLX). He says it can use AI to enrich its proprietary datasets to support scientists, lawyers and risk professionals around the world.

Investors initially saw AI as a threat to RELX. But they relaxed after chief financial officer Nick Luff claimed it’s more of an opportunity, with the £50bn firm already building the technology into its products. The RELX share price is up 24.34% over the last year, triple the FTSE 100’s 8.28%. Longer-term investors have done even better.

“They are also up 4.5-fold since the start of the 21st century, which is actually rather better than Nasdaq,” Train said.

So the UK is home to at least one digital winner, Train says, and picks out another in accounting software specialist Sage Group (LSE: SGE), whose shares soared 45.77% over the last 12 months, hitting a 22-year high.

Created with Highcharts 11.4.3Sage Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Train says management reckons the £9bn company has entered a new phase of growth, providing cloud-delivered software services to small- and mid-cap companies worldwide. Sage is expanding quickly in the US too.

Both stocks have risks, of course. The AI revolution could still eat RELX, allowing customers to dispense with its services. It’s not cheap following its strong run, trading at 25.24 times earnings. The yield is 2.08%.

Sage is even costlier at 33.98 times earnings, way above the FTSE 100 average of 9.9 times. Then again, it does offer superior growth prospects, although these things are never guaranteed. It yields 2.11%.

Both stocks are on my watchlist while I wait to see how AI mania plays out. I wish I’d bought RELX and Sage when they were cheaper, but not as much as I wish I’d bought Nvidia.

Should you invest £1,000 in Dfs Furniture Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Dfs Furniture Plc made the list?

See the 6 stocks

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Alphabet, Amazon.com, Apple, Microsoft, Nvidia, RELX, and Sage Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

What’s up with the Lloyds share price?

The Lloyds share price is up 26% in 2025, representing one of the strongest performance on the FTSE 100. Dr…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

Here’s how a 40-year-old could start investing £100 per week to retire early

If a 40-year-old decides to start investing today, here's how they could potentially turn £100 a week into over £500k…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

The FTSE 100 is up 60% in 5 years. Here’s why — and a big lesson!

The flagship FTSE 100 index has put in a very strong performance over five years. There's a specific reason for…

Read more »

Investing Articles

How much do investors need in an ISA to earn a £2,500 monthly passive income?

Charlie Carman explores how investors could strive for £30k in tax-free passive income each year from a dividend stock portfolio.

Read more »

Investing Articles

How much would a 45-year-old need to invest in an ISA to earn a £1k monthly passive income at 65?

Harvey Jones looks at how much an investor would need to put away every month to build a steady passive…

Read more »

Investing Articles

3 things to do ahead of the new 2025-26 ISA year

It's time for us all to put on our investing boots and get to work on developing our plans for…

Read more »

Older couple walking in park
Investing Articles

Is £150,000 enough to generate £1,000 a month in passive income?

Stephen Wright takes a look at three UK stocks with dividend yields above 8% that passive income investors might be…

Read more »

Investing Articles

Aim to earn a £50k second income in retirement by investing just this much each month

Even with a small monthly investment, it’s possible to earn a £50k second income with a successful investment strategy and…

Read more »