Investors should buy Alphabet (GOOG) and Microsoft (MSFT), David Harden, the President of Summit Global Investments, told Yahoo Finance recently.

On the other hand, Harden does not recommend buying NVDA stock yet. However, he is bullish on AI in general.

Why Harden Is Upbeat on GOOG, MSFT

Alphabet generated $25 billion of free cash flow last quarter, and it's growing by double-digit percentage levels year-over-year while its profit margins are "great," Harden said. Additionally, its valuation has become reasonable, and its reliance on the U.S. for a large percentage of its revenue is positive as tariffs become a major factor in the economy,  the investor contended.

Comparing MSFT to NVDA, Harden stated that MSFT "is safer than Nvidia, more ingrained in our society, and its revenues are more consistent."

Harden Does Not Recommend NVDA But Is Bullish on AI

Investors who own Nvidia should hold it, but there will be better times down the road to buy the stock, according to Harden.

On AI, Harden reported that the technology continues to proliferate, and he expects that trend to continue. He recommended that investors look to buy "industrial" tech names to exploit the latter trend.

While we acknowledge the potential of GOOG, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.