There are better stocks to buy instead of Nvidia (NASDAQ:NVDA). Although the chipmaker has been an absolute workhorse and promises to radically alter the artificial intelligence landscape, let’s be real and admit NVDA stock is not cheap.

The leading AI stock trades at 64 times earnings, 34 times sales, and 70 times free cash flow (FCF). Those are all nose-bleed valuations. Essentially, if you were to buy Nvidia outright, it would take you 64 years to earn back your investment through its profits. As the popular meme says, ain’t nobody got time for that!

That’s why I say there are better stocks to buy instead of Nvidia. The chipmaker is an excellent company, but there is concern that the melt-up in AI stocks may have run too far too fast. NVDA stock has fallen 22% from its recent high. As the market rotates away from former high-flying tech stocks, the following three companies just might be better for your portfolio.

DaVita (DVA)

Dialysis treatment center DaVita (NYSE:DVA) is one of the two largest dialysis centers in the U.S. It generates almost all of its revenue and profits from the procedure and runs neck-and-neck with Fresenius Medical Care (NYSE:FMS) for the claim to being top dog.

Second-quarter revenue grew 6% to almost $3.2 billion as profits soared 25% to $222 million. The total volume of U.S. dialysis treatments rose to 7.27 million, or over 93,000 treatments per day, a 1.1% increase year-over-year. DaVita is benefiting from better Medicare reimbursement rates and timing due to patients meeting their co-insurance and deductible levels.

Although DaVita stock is up 37% year-to-date, shares trade at less than 13 times next year’s earnings estimates, a fraction of its sales, and a bargain-basement of 9x FCF. It makes the discounted stock an attractive investment for those able to see the long-term value of treating the growing incidence of diabetes.

Brinker International (EAT)

Restaurant owner Brinker International (NYSE:EAT) might not be as exciting as owning Nvidia stock but it is a good long-term value nonetheless. Brinker owns the Chili’s chain of Tex-Mex restaurants as well as the Maggiano’s Little Italy chain. Mexican food remains a popular trend and investors will get a taste of just how popular when the restaurateur posts earnings on Wednesday, Aug. 14.

So far, business has been popping. Fiscal third-quarter revenue rose 3.4% earlier this year to over $1.1 billion on a 3.3% increase in comparable sales. Consumers are looking to save money and are finding it within its Chili’s and Maggiano’s chains.

EAT stock goes for just 14 times next year’s estimates, a fraction of its sales and 20x FCF. Shares have risen 59% in 2024 and are 78% higher in the past 12 months. Analysts expect Brinker to post earnings growth of 20% a year for the next five years.

While the consensus price target for Brinker International is $57 per share, about 16% below where it currently trades, the high side estimate of $90 per share would imply 30% more growth potential.

Cactus (WHD)

Oil field services outfit Cactus (NYSE:WHD) is the third- better stock than Nvidia to buy. It sells pressure control equipment for wellheads as well as spoolable pipe and fittings. The energy industry was recently plagued with reduced activity, but Cactus thinks that’s behind it now. A potential headwind has been the record merger and acquisition activity in the space over the past year.

While it shows the oil and gas majors like Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) remain interested in the domestic market, fewer available companies could mean fewer customers. Yet with overall increased activity, Cactus can still grow its business.

WHD stock is up 32% in 2024 yet trades at 18 times estimated earnings. With analysts forecasting 23.5% long-term earnings growth, more than double the rate it grew over the last five years, the stock is trading at a fraction to those rates.

At current prices, Cactus is a solid pick for long-term growth. The oil and gas industry has a long runway ahead and flexible pipe is a key component of tapping hard-to-reach resources. Cactus should have plenty of growth opportunities ahead.

On the date of publication, Rich Duprey held a LONG position in XOM and CVX stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.