This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Is Nvidia (NASDAQ: NVDA) finally slowing down? The artificial intelligence (AI) giant ended 2025 on a high note, up 39%. However, it's down about 7% from its highs at the end of October, when it became the first company to hit a $5 trillion market cap.

Can it get back there? And does it still offer value for investors from this level? Let's see where it could be a year from now. 

New products, rising competition

Nvidia plays a central role in AI development. Its product line, including its various graphics processing units (GPU) and CUDA software, are relied upon by its many high-profile clients like Amazon and Microsoft.

AI is a fast-moving and rapidly changing industry, and Nvidia continues to roll out innovative technology and new products to provide the necessary power for its clients to process data. Data centers are one of its biggest growth drivers today, and it keeps bringing out new graphics processing units (GPU) with more processing power to handle greater data loads. It's also rolling out many vertically integrated solutions that keep clients within its ecosystem. That protects it to some degree from the onslaught of new competition in the space. As a high-growth industry, there's no shortage of companies trying to develop more sophisticated AI technology.

That brings us to where Nvidia could be in a year. Considering its dominance and innovation, I don't envision it slowing down and losing ground just yet. So while new competition could eventually put a dent in its growth, it may take a while to make a big impact. At the same time, it looks like the market is already pricing in these worries into the stock's cost. As long as the AI market continues to grow, Nvidia is likely to follow suit, albeit at a slower pace than in the past. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Warren Buffett has been leading holding company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) since 1965. That's 60 years of market trouncing.

As of the end of 2024, Berkshire Hathaway had gained 5,502,284% in per-share market value since Buffett took over, whereas the S&P 500 had gained 39,054% at the same time. When he leaves at the end of the year, it will be with an unmatched legacy and a trove of wisdom for investors.

Buffett may still weigh in about market dynamics and the right approach to investing from a different perch, but he will no longer be writing the company's annual letters, chock-full of his nuggets of wisdom. Here are three of his gems to guide you as you continue your own investing journey.

"No matter how serene today may be, tomorrow is always uncertain."

Buffett wrote this in his 2010 shareholder letter, not too long after the mortgage crisis and subsequent market implosion. He reminded investors that no one saw what was coming in 1987 or 2001, two other times in history when the market crashed.

Although that sounds like a dour take on the market, he actually meant it in a positive way. "Don't let that reality spook you. Throughout my lifetime, politicians and pundits have constantly moaned about terrifying problems facing America," a statement eerily reminiscent of today's political scene. And that was precisely his point: "America's best days lie ahead."

We live in uncertain times, too. There could be an artificial intelligence (AI) bubble, or a cryptocurrency bubble, or a general stock market bubble -- or not. But as Buffett pointed out 15 years ago, that's par for the course. The short term is always uncertain, but the long-term arc has always been upward. Buffett will always bet on America, and don't let the uncertainty keep you out of the markets.

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

Buffett is known as a value investor, but he isn't just searching for cheap stocks. Stocks are by definition only bargains if they're valuable; otherwise, they're value traps.

It's the great companies that can withstand market volatility and create shareholder value. So while you don't want to overpay, the more important part of choosing a stock is focusing on a wonderful company.

That doesn't mean Buffett isn't looking for the incredible opportunity of a great company at a cheap price. He demonstrated that when Berkshire Hathaway bought shares of UnitedHealth Group when they dropped a few months ago. The one trait he pointed out about incoming CEO Greg Abel in the most recent shareholder letter is his ability to act when opportunities present themselves.

"When investing, pessimism is your friend, euphoria the enemy."

This is a crucial lesson for investors to keep in mind during strong bull markets -- like today. The S&P 500 continues to rise, posting double-digit gains for the third year in a row, but the market appears to be driven by an AI-based euphoria.

Large hyperscalers are sinking billions of dollars into AI development, and the results have yet to be seen. Berkshire itself invested in Alphabet in the third quarter, so Buffett still sees value in some AI development. He also owns shares of Amazon.

He has warned investors about buying stocks when the market is at a high, noting that "Unfortunately...stocks can't outperform businesses indefinitely." The stock market is highly valued today, which might be why Berkshire Hathaway has been a net seller of stocks for the past 12 quarters and has built up record levels of cash and short-term Treasury bills.

Warren Buffett would counsel investors to stay in the market and keep buying the right stocks under the right circumstances, but be wary of euphoria and embrace pessimism. If you expect the market to rise over the long term, pessimistic markets can offer the greatest opportunities.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, and Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended UnitedHealth Group. The Motley Fool Australia has recommended Alphabet, Amazon, and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Warren Buffett would be the first to tell you that's a great strategy. In fact, he has said that most investors should employ this strategy. However, Buffett and his team sold their S&P 500 exchange-traded funds (ETF) last year, and they've been net sellers of stocks for the past 12 quarters, an unprecedented streak.

Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) cash pile sits at nearly $392 billion, a 200% increase over the past three years, and its highest ever. 

However, I don't think investors should interpret this as a loss of confidence in the market. Buffett is a big believer in the American story and the power of the market to generate shareholder wealth over time. And although he's sold more stocks than he's bought recently, he's still buying.

So how should investors interpret it? It's not hard to see that the market is expensive today, and after three years of high growth, it's looking more and more like there may be a stock market bubble. Buffett clearly doesn't see many opportunities in today's market, and that could be a setup for some kind of correction.

Investors can't know if that's imminent or still years away, but you can set yourself up for success, no matter what happens in 2026. Here's how.

1. Focus on valuation and avoid expensive stocks.

Buffett is known as a value investor, which means that he seeks undervalued stocks that should be expected to rise to their intrinsic value. As the market becomes more expensive, it's harder to find these kinds of stocks, which is why Berkshire Hathaway's stock purchases have been limited over the past two years. The S&P 500 cyclically adjusted P/E (CAPE) ratio is higher than 39, the highest it's been in 25 years.

In general, Buffett prefers high-quality companies to cheap stocks. One of his most oft-quoted quips is that "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." This implies that Buffett doesn't see today's prices as fair, let alone cheap.

It's always important to be choosy about valuation and not overpay for a stock; inflated stocks inevitably lead to a drop. But in this environment, it's crucial.

2. Have some cash ready for deals

Buffett won't claim to know if there's a crash coming in 2026, but elevated valuations sure makes it seem likely that there could be downward pressure soon. If you don't have any cash available, you'll miss the chance to buy stocks on the dip if they fall.

Even in the case that the market continues to climb this year, it becomes all the more important to have cash ready to scoop up the few opportunities that do land. For example, Berkshire Hathaway took a position in healthcare giant United Healthcare in the second quarter likely after it plunged and fell to a P/E ratio of 11. Similarly, it took a position in Alphabet in the third quarter, when its average P/E ratio was 22. Today, it's 31.

3. Keep investing

One Buffett tenet is to stay in the market under pretty much all circumstances. The moment you pull your money out, you cement your losses instead of giving your stocks the chance to rebound. And if you're not buying new stocks, you're missing out on market growth and magic of compounding.

"Certainly in the next 20 years, you'll see a period that will be what somebody in the market described one time as a hair curl compared to anything you've seen before," Buffett said at this year's annual meeting. "The more sophisticated the system gets, the more the surprises can be out of right field. That's just...part of the stock market."

Market volatility is a part of the process. Don't panic sell if things get rough, and keep seeking out opportunities.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet and Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended UnitedHealth Group. The Motley Fool Australia has recommended Alphabet and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) stock is up 37% year-to-date as we approach the end of 2025. That's about double the S&P 500's total return this year, which is certainly an impressive gain. However, it's a significant slowdown from previous years -- 239% in 2023 and 172% in 2024. In fact, it has gained 1,260% over the past five years, including a painful period when it lost more than half of its total value in 2022.

Will that trend continue? And does it make sense to invest $1,000 in Nvidia stock today? 

The key to AI

Nvidia has had such an incredible run-up over the past few years because its graphics processing unit (GPU) chips are the most powerful chips to handle massive data loads for artificial intelligence (AI) creation. As hyperscalers build out huge AI businesses and develop data centers to generate the next wave of AI capabilities, Nvidia's chips have been in high demand.

The company continues to roll out new and more powerful products to drive all the new and exciting AI development, but competition is heating up, with companies like Advanced Micro Devices and even Alphabet scoring new, important deals for their chips.

Given Nvidia's central position in AI right now, it doesn't look like there's any near-term danger of losing its edge. It's natural that as the industry explodes, other companies are going to make strides and also take some market share.

Which means that, as much as we can anticipate future challenges, Nvidia is still going to be a good investment. Even if it doesn't deliver the same staggering gains it has in the past, investing $1,000 in Nvidia stock makes sense today.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool Australia has recommended Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The artificial intelligence (AI) race continues to heat up, and the stakes continue to get higher as the hyperscalers announce ever-increasing investments in their infrastructure.

The latest market sentiment centers around how fast these AI giants, like Amazon (NASDAQ: AMZN), Meta Platforms, and Alphabet, can recoup their investments, and whether or not that's going to lead to an AI bubble.

Amazon made another announcement this week related to its investments in AI. Management had updated investors in the third-quarter earnings call that it would end 2025 with about $125 billion in AI spending, more than any other cloud provider, and that it would accelerate it in 2026. It just announced the first 2026 deal, for $50 billion. Will that help Amazon win the race? 

AWS is the leader in cloud services

Amazon uses AI across its business, but when people talk about this business, it refers to the generative AI it offers clients through the Amazon Web Services (AWS) cloud computing segment. AWS is the largest cloud company in the world, with about 29% of the market, according to Statista.

Although that's a huge amount of market share, accounting for nearly a third of the total, its largest competitors aren't too far behind. Microsoft's Azure has 20%, and Alphabet's Google Cloud has 13%, while a sprinkling of other companies have smaller shares.

As the leader in the industry, Amazon has the first-mover's edge, and it needs to keep investing in this fast-moving space to stay on top. AWS generated $33 billion in revenue in the 2023 third quarter, and it was responsible for 66% of Amazon's total operating income, with $11.4 billion in the quarter. That's a 34% operating margin for AWS, and Amazon can invest those profits in growing the business to new levels.

The AWS client list includes the U.S. government

AWS has Top Secret, Secret, and GovCloud segments that can manage classified information for government intelligence and defense departments, as well as related offices. It's investing $50 billion, starting next year, in expanding its capabilities to service these segments with accelerated supercomputing abilities. It's adding 1.3 gigawatts of AI and data center capacity, widening access to its AI tools like SageMaker and Bedrock, as well as large language models (LLM) like Claude and Nova.

The increased data capacity can help government agencies collect data and process information faster and more efficiently for improved analysis and more accurate decision-making.

It sounds a lot like Palantir Technologies' Gotham and Artificial Intelligence Platform (AIP) programs. Palantir has been one of the hottest stocks on the market, and Amazon may be leaning into trying to get some of its hypergrowth.

Palantir already partners with AWS, and there may be some cross-deals here, although Palantir wasn't mentioned in the announcement. So while it looks like competition, it could be a mutually beneficial relationship.

Which stocks are poised to win?

Amazon has its finger in many pies, and this is another way to expand its presence and opportunities in a high-growth space. Its AI business has a triple-digit growth rate and is already a multibillion-dollar business.

Defense contracts are usually long term and lucrative, and servicing this market opens more opportunities for Amazon. It's also a boost for Nvidia, which was mentioned in the announcement, since it provides the base infrastructure for AWS' most powerful capabilities.

Amazon stock is still trailing the S&P 500 as the year gets closer to its end, and is up only 4%. This could be an excellent time to buy in for long-term investors.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) dispelled investor worries about a slowdown in artificial intelligence (AI) with a stellar earnings report last week. Revenue increased 62% year over year in the fiscal 2026 third quarter, and earnings per share (EPS) rose from $1.08 last year to $1.30 this year, blowing analyst estimates out of the water, as usual.

However, even though the results were spectacular, and the company updated investors with great news about future opportunities, Nvidia's stock barely registered it. There are still fears about where all of this AI spending is going.

If you were prescient enough to see Nvidia's potential 10 years ago and invested then, even $100 would be worth an incredible amount today. 

The key to AI

There are multiple companies with heavy AI investments that are already changing the world. They have several key components, and for many of them, that includes Nvidia.

Nvidia designs the graphics processing units (GPUs) that make the most powerful AI possible. All of the top AI companies, like Amazon and Microsoft, have partnerships with Nvidia as they try to climb to the top of the AI mountain.

The advent of generative AI has completely changed Nvidia's trajectory as a chip company, and no one could have foreseen these developments 10 years ago. What investors could have seen was a company with solid technology committed to innovation, and if you believed in that mission, you'd be a lot richer today. All it would have taken was a $100 investment in Nvidia stock to have $23,000 today.

Although it looks like Nvidia stock is sputtering right now, that's part of how the market works. Long term, Nvidia could still create shareholder value, although at a slower rate; $100 today won't create nearly the same gains at today's prices.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

After falling behind some of its erstwhile competitors, Apple (NASDAQ: AAPL) is back as the second most valuable company in the world, finally hitting the $4 trillion mark last week as Nvidia reached $5 trillion.

It's still trailing the S&P 500, which is up nearly 18% year to date, but it's finally gathering momentum, up 8%.

There were several positive updates last week that finally brought the market back on board with Apple stock. Investors were relieved that tariffs on goods brought in from China are going to be halved, and that Apple is committed to producing more goods in the U.S. But for the long-term view, there's something more important happening at Apple. 

The most popular phone in the U.S.

There are many smartphone makers today, but the iPhone is in a league of its own. According to Counterpoint Research, Apple models make up four of the top five best-selling smartphones in the U.S., including the top three. The top-selling model is the iPhone 16 as of June, but that might be changing with the release of the iPhone 17, which is already outselling it.

iPhone sales have been robust over the past two quarters, and they increased 6% year over year in the 2025 fiscal fourth quarter (ended Sept. 27). iPhone sales account for about half the company's total.

The iPhone 17 was released in the middle of September, so sales are mostly excluded from these results. But so far, according to early calculations, they have been solid. Counterpoint said that for the first 10 days it was on sale, iPhone 17 sales outperformed iPhone 16 sales in the U.S. and China, Apple's most important markets.

Indeed, management provided upbeat guidance for the 2026 first quarter, saying that company sales are expected to increase 10% to 12% driven by iPhone 17 sales. It also said that sales have been constrained by capacity, not demand, and that it was working hard to meet that demand. The current quarter is an important one for device companies like Apple, whose products are popular holiday gifts.

Can Apple stock keep climbing?

The iPhone is still Apple's top product, and upgrades are keeping customers happy. Apple has received negative market sentiment for delays in Apple Intelligence, but Apple knows what its customers want and is delivering.

I see bright days ahead for the tech giant, and that starts with happy iPhone users. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jennifer Saibil has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Nvidia. The Motley Fool Australia has recommended Apple and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

It was only July when Nvidia (NASDAQ: NVDA) smashed through the $4 trillion market cap mark, becoming the first company ever to do so. This week, the artificial intelligence (AI) giant surpassed $5 trillion in market cap, another worldwide first. After worrying investors earlier this year, Nvidia is back in the market's favor, and the stock is up 55% so far this year, crushing the market average.

As valuable as this company is today, though, there are many reasons to believe the stock can keep flying higher. 

More data centers, more deals, more technology

It's hard to keep up with everything happening at Nvidia. The company is on fire, rolling out new products and forging new deals with partners and clients on an almost daily basis.

Here is just a sampling from this week: Nvidia announced a partnership with Uber, which will use its DRIVE AV Platform and DRIVE AGX Hyperion 10 Architecture to equip a fleet of autonomous vehicles that will complement its human-driven ridesharing cars. Nvidia's technology is a "reference compute and sensor architecture" that uses AI to sense the world around the car and operate it safely. Uber plans to begin scaling that self-driving fleet up toward 100,000 cars in 2027. That fleet's processing needs will further be supported by an AI factory (i.e., a massive dedicated data center) built on Nvidia's Cosmos platform.

Nvidia also announced a deal with Palantir Technologies to build a full-stack, integrated AI solution to manage complex operational AI processes. Palantir is a leader in AI data analysis systems, and this new project will streamline its platform for faster and better performance.

Not only will these deals be huge revenue drivers, they imply that there is a vast, long-term opportunity in the AI processing space, and Nvidia sits at the center of it.

Meanwhile, Nvidia continues to roll out new products to propel the AI revolution forward. It just debuted Omniverse DSX, which it describes as an "open blueprint for designing and operating gigawatt-scale AI factories." Nvidia is increasingly bringing out integrated AI products that bring all of the different steps together. This strategy aims for a faster and more seamless system to create more powerful generative AI solutions.

One reason the stock may have surged on Wednesday was that CEO Jensen Huang was in Washington, D.C., for the company's GTC conference, where he gave a keynote address and touched on opportunities in AI. He said that the company has already shipped 6 million Blackwell chips and has orders for 14 million more for delivery over the coming five quarters. The market likely gave a thumbs-up to the news that much of the production is happening in the U.S.

Nvidia has high expectations to meet in November

This is a great setup for Nvidia as it heads toward its earnings report on Nov. 19, but it will have high bars to clear, especially at its current stock price. Investors can feel some confidence given that Nvidia's results tend to beat expectations, but the pressure is definitely on.

In the company's fiscal 2026 second quarter (which ended July 27), sales increased 56% year over year, even though it was unable to sell its H20 chips to buyers in China during the period. The Trump administration has since eased those export restrictions, but Nvidia has not factored potential sales to China into its fiscal third-quarter revenue guidance. It's still guiding for sales of about $54 billion, 54% more than last year.

Its profits have been equally impressive. Fiscal Q2 earnings per share were $1.08, up from $0.67 in the prior-year period, and it has an impressive 61% operating margin.

As Nvidia stock keeps climbing, it's becoming more expensive in terms of valuation. At the current price, it trades at a price-to-earnings (P/E) ratio of 59. There are high expectations built into that price, but Nvidia is likely to come through. Investors are paying a premium because the opportunities for the company are massive.

Nvidia's growth rate will naturally slow down as the company gets bigger, but it should be able to keep investors happy as it continues to drive AI innovation. As long as you have some appetite for risk and can hold onto your shares through ups and downs, you can still comfortably buy Nvidia stock today.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia, Palantir Technologies, and Uber Technologies. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Legendary investor Warren Buffett took the helm of the holding company Berkshire Hathaway in 1965, and he has led it to fantastic, market-crushing gains. Through the end of 2024, just a year shy of his retirement, Berkshire Hathaway had gained 5,502,284% in per-share market value versus a 39,054% gain for the S&P 500.

Investors looking to emulate his fantastic success are best off following his advice, or you can easily buy shares of Berkshire Hathaway stock. If you look through the company's equity portfolio, which is public, you might be surprised to see a few tech stocks.

Buffett is a fan of value stocks and dividend stocks, and he loves consumer goods. In fact, the two artificial intelligence (AI) stocks he does own -- Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) -- are both consumer goods giants, and AI can drive further growth for both of them. 

Apple: 24.3% of Berkshire's portfolio

Apple is one of a trio of stocks that Buffett said he would never sell. While many people would label it a tech company, Buffett loves the consumer goods aspect of its business. It sells lots of devices to lots of people, and the interconnected system creates an Apple community with loyal users and customers who typically buy all-Apple products -- iPhones, laptops, and the like.

The iPhone is its premier product, accounting for about half of total revenue. Users love its design, quality, features, and more. Once converted, they typically don't look back.

Although fans are known to upgrade to new models, it often takes a few years. Recently, there have been higher sales from customers who upgraded when digital became more important during the pandemic.

Increasing iPhone sales have greater implications than simply adding to the top line. Investors and analysts have been worried about the trajectory of Apple Intelligence, which seems to be behind other AI programs.

But increasing iPhone sales are a clear indication that customers are happy with their devices, that the level of AI is working for them, and that there are other features that may be more important. This is Apple's edge, and it's why Buffett loves it. 

Amazon: 0.7% of Berkshire's portfolio

Amazon is only a small fraction of Buffett's portfolio, but it packs a mean punch. It's one of the most important AI companies in the world, and combined with its consumer focus, Amazon still has incredible long-term opportunities.

The AI business runs on Amazon Web Services (AWS), the cloud services segment. The company has developed a large platform offering all kinds of services, including the tools for developers to build their own large language models (LLMs), as well as to engage with an assortment of LLMs through its Bedrock program.

Amazon is investing hundreds of millions of dollars in its AI business, and it's already paying off: It has a run rate of more than $100 billion, and management thinks it's just getting started. "Every single area that I can think of in the way we work is likely going to be impacted in some meaningful way by AI," CEO Andy Jassy has said.

And it's still in its early stages. The company is developing its own chips and hardware to offer budget options and compete on price, and it has a long-term vision as it sets up its AI business. That means investing in powerful data centers that can support AI capabilities for its AWS clients.

It's important to note that, as with Apple, Buffett didn't buy Amazon stock for exposure to AI; he's not a big fan of the technology. The two investments stand out for many reasons, and one of them is that they offer so much more besides the AI opportunity.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• Stagflation: How to position an ASX stock portfolio
• How to build massive wealth with ASX shares
• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert

Jennifer Saibil has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, and Berkshire Hathaway. The Motley Fool Australia has recommended Amazon, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Key Points

• Nvidia and Microsoft stocks both reached $4 trillion in value, surpassing Apple.

• Nvidia, Microsoft, and Apple trade at a similar valuation.

• The market is worried about several key factors for Apple, including its reliance on its iPhone business and falling behind in AI.

Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) have heralded a new era, creating the $4 trillion stock club. It was only 2023 when Apple (NASDAQ: AAPL) became the first $3 trillion company, and it was also the first $1 trillion company back in 2018, but it has since fallen behind. As Nvidia heads toward a $5 trillion valuation, Apple remains the third-largest company in the world with $3.4 trillion market cap. Can it catch up?

Riding the AI train

Nvidia has had a mind-blowing ascent as the premier designer of the graphics processing units (GPU) that are necessary for generative artificial intelligence (AI). It has evolved from a somewhat obscure chipmaker for the gaming industry into a household name that's associated with the AI revolution.

Of course, it's much more than a name. It's an excellent company, reporting massive growth and a wide operating margin, and it's not surprising that investors are noticing its incredible opportunity. In the fiscal 2026 first quarter (ended April 27), revenue increased 69% year over year, which is outstanding for a company of its size. At the current price, it trades at a forward, 1-year P/E ratio of 31. It's debatable how expensive that is, but it's not astronomical, giving it even further room to run. It could easily reach a $5 trillion market cap before the year is out.

Microsoft is a Nvidia client, and it's also a leader in software and increasingly, cloud services. It's also investing in AI throughout its business, especially in creating large language models (LLMs) and offering LLM services to developers and clients in its cloud business. Total revenue increased 18% year over year in the 2025 fiscal fourth quarter (ended June 30), and revenue from its Azure cloud segment was up 34% in the quarter. Microsoft stock trades at a forward, 1-year P/E ratio of 29.

Both of these stocks are reporting tremendous growth, but more importantly, they have incredible opportunities. According to United Nations Trade and Development (UNCTAD), the AI market is expected to increase from $183 billion in 2023 to $4.8 trillion in 2033, or more than 25-fold over 10 years.

Falling far from the tree

Where's Apple in all of this? It's still the third-highest-valued company in the world, but it hasn't grown as fast as its large peers recently. In fact, it's the only one of the six largest stocks, with the other three being Meta Platforms, Amazon, and Alphabet, that's down this year.

AAPL data by YCharts

There are a number of factors that are creating pessimism. One is its reliance on iPhones, which account for almost half of total revenue. As technology improves, there are reasons to suspect that users will gravitate toward new kinds of devices. Alphabet CEO Sundar Pichai caused a commotion when he said, "I think it'll be an exciting new emerging category, but I still expect phones to be at the center of the experience for the next two to three years, at least," on Alphabet's second-quarter conference call.

While that implies iPhones will be important for a while, it also implies that they may not be in the coming years. You don't have to look too far back in history to see leading companies that became obsolete when they didn't keep up with changing trends, and that's a worry for the market. And at the current price, it's not cheap at all, trading at 29 times forward, 1-year earnings, just like Microsoft.

On top of that, investors haven't been impressed with Apple Intelligence. While the other tech giants have been launching exciting and revolutionary AI-based features and tools, Apple's AI hasn't excited users. However, CEO Tim Cook stressed on the third-quarter earnings call two weeks ago that Apple is going to significantly increase its investments in AI.

Apple tends to do things differently, and that has brought it great success in the past. Apple stock has tumbled several times in the past as well, and it has always bounced back to new heights, bypassing the has-been lane. It's well-positioned right now to leverage its massive user base with improved technology, and there's a good chance that a rebound is just around the corner. I wouldn't count it out from joining the $4 trillion club soon.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• Stagflation: How to position an ASX stock portfolio
• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert
• 3 fantastic ASX ETFs to buy this month

Jennifer Saibil has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

You might be surprised to learn that Amazon (NASDAQ: AMZN) stock is trailing the S&P 500 this year. Despite the market rebounding on good news about tariffs, the market is still worried about Amazon's high exposure.

In the company's last earnings update, management gave a fair defense of its business and why it wasn't as exposed as some investors might think. Amazon stock climbed after that report, but it's still not back to its previous highs.

Amazon reports second-quarter earnings on July 31. Let's see what could happen and whether or not it makes sense to buy the stock before the report.

High expectations

Amazon is the second-largest company in the U.S. by sales, and it's the fourth-largest company in the world by market cap. It has about 40% of the U.S. market for e-commerce and 30% of the global market for cloud services. It's a formidable company, and there are many built-in expectations to keep it that way.

It's a large and complex business with many moving parts, and it makes steady progress in its various segments with updates every quarter. In e-commerce, it recently started restructuring its inbound channels to get products to its vast domestic distribution centers faster and cheaper, and to make sure they're well stocked with the products shoppers purchase most frequently. It's also using more robotics, which can be quicker and less expensive than relying on workers, and it's expanding its delivery station count in rural communities.

CEO Andy Jassy calmed shareholders' concerns about tariffs on Chinese goods, saying the company has millions of products with many suppliers, which protects it to some degree, and that as a trusted name, shoppers will keep purchasing from it when there's uncertainty.

What everyone is most interested in, though, is artificial intelligence (AI). Amazon has a competitive AI business through Amazon Web Services (AWS), its cloud segment. The AI business is a multibillion-dollar business, but management sees it as being in its early innings. It's investing more than $100 million in AI this year alone to provide the largest and most capable AI platform. "We're not dabbling here," Jassy said. "We're very intentionally giving builders the broadest possible capabilities at every level of the AI stack cost-effectively to use AI expansively across their businesses."

Management gave a broad range of outcomes for the second quarter, considering the dynamic environment. Sales are expected to increase 7% to 11%, or come in between $159 billion and $164 billion. Wall Street is expecting $162 billion. It's also guiding for operating income of $13 billion and $17.5 billion, up or down from $14.7 billion last year.

What could happen on July 31

Amazon stock has mostly jumped after earnings in recent times. It tends to beat guidance, and it usually has some exciting news for shareholders and followers. However, there's no guarantee, and it plunged after the 2024 fourth quarter report, when tariffs were first being discussed.

Since the tariff situation seems to be temporarily resolved, and the market isn't giving it that much weight right now, the likelihood is that Amazon stock will jump this time around. However, there's no way to know with certainty beforehand.

Although it might appear to be a good idea to buy before earnings if they're expected to be positive, if you're a long-term investor, these kinds of timing decisions tend not to matter in the long run. Amazon stock could jump on Thursday and you'll feel really good about your decision to buy beforehand, but if there's a sudden announcement next week about new tariffs, the stock could drop to an even lower price than it was before the report.

You can't time the market, and it's not usually worthwhile to try. If you see Amazon's long-term opportunity and have confidence in its management, and you appreciate today's compelling valuation, you should buy it as soon as possible.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• How to invest in the AI Build-Out: Expert
• Why ASX investors dumped IVV ETF last month

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) has had an almost unreal ascent over the past few years. It crossed the $1 trillion market cap threshold in 2023 and became the fifth-largest company in the world. And it has skipped over the front-runners in two years, increasing by 329%, to become the most valuable company in the world, as well as the first to reach $4 trillion in value.

The stock got a further boost this week when President Donald Trump relaxed the government's stance on selling Nvidia's chips to China. Let's see why this is important for Nvidia and what it means about artificial intelligence (AI) adoption trends globally.

Nvidia, the U.S., and China

Nvidia is the premier graphics processing unit (GPU) company, making the most powerful chips for several industries. Before OpenAI changed the tech landscape with the launch of ChatGPT a few years ago, Nvidia was most known for its gaming chips. Today, its greatest growth and potential are in generative AI.

Nvidia is based in California, and as a U.S. company, it's subject to government rules and guidelines. Both the Biden administration and today's Trump administration have leveraged the U.S. lead in AI in its favor and attempted to curtail some of the country's best technology outside of the U.S., specifically in China.

The situation has changed several times, and from this past April until this week, the U.S. had implemented new restrictions on what chips Nvidia could export to China. In the short term, the company had to take a $4.5 billion charge on its fiscal first-quarter (ended April 27) financial statements related to its H2O chips for orders it couldn't fulfill in China.

CEO Jensen Huang has been outspoken in his disagreement with these policies and how he sees this working against the U.S. in the long term. Without Nvidia's products, he believes, Chinese tech companies will figure out how to build their own AI chips and models.

"General-purpose, open-source research and foundation models are the backbone of AI innovation," Huang said. "We believe that every civil model should run best on the U.S. technology stack, encouraging nations worldwide to choose America."

On Monday, the company announced that the government would grant it licenses to resume selling chips in China.

Global AI adoption

Nvidia notes its commitment to open-source research and democratizing AI globally. The company's explosive growth is itself a testament to how AI continues to flourish, and it's only serving a portion of the global market.

As the top chip company, Nvidia's chips are in high demand from the largest companies, like Amazon and Microsoft, that are building out huge AI businesses. They themselves are serving other giants with AI tools and services in partnership with Nvidia, offering access to the chipmaker's powerful technology.

They also service many smaller companies that would like to participate in generative AI but don't have the funds or scale to develop potent AI apps. According to Motley Fool research, AI adoption is only 9.2% today in the U.S., up from 3.7% nearly two years ago when the U.S. Census Bureau started collecting data on the subject.

Huang envisions his company's technology supporting a global infrastructure for the proliferation of AI to companies of all sizes worldwide. He says that benefits the U.S. as the source of the infrastructure, and of course, it benefits Nvidia acutely.

Even with the relaxing of regulations, the company could still be highly affected by increased tariffs, and the laws could keep changing. But there doesn't seem to be any way to stop AI at this point.

According to Statista, the AI market is expected to more than triple over the next five years, and like most other technology, it will eventually become cheaper and easier to use. As Nvidia reaches more markets and supports more AI efforts, it's likely to keep growing and rewarding shareholders.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert
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• Is this the best Vanguard ETF money can buy right now?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) made big news last week when it became the first company ever to reach a $4 trillion market cap. Although investors were worried about it earlier this year due to competition and tariffs, savvy investors saw its plunge as an incredible opportunity, and they've been proven right already.

At its incredible highs today, can investing in Nvidia stock still make you a millionaire?

The massive AI opportunity

Nvidia soared to the top of the market due to its best-in-class graphics processing units (GPU) that make generative artificial intelligence (AI) work. It's been around for decades, but its products have been used mostly for the gaming industry. This new opportunity is much greater, and demand has been through the roof. Nvidia stock is up 1,000% over the past three years.

According to Statista, the AI opportunity is going to increase at a compound annual growth rate of 26.6% over the next five years. Nvidia may benefit from that expansion more than any other company. It has between 90% and 95% of the market for AI chips, and even though it's facing increasing competition, the largest and most lucrative contracts are ending up on its platform because it has powerful capabilities that are unmatched in the chip market.

It's not satisfied with leaving it that way, though, and it's in the process of creating and launching ever more powerful chips to drive further generative AI capabilities and higher growth. Its Blackwell architecture was launched last year, and it's already in the process of launching the next level of chips called Blackwell Ultra, with its first contract under way with CoreWeave. It's also an investor in CoreWeave, which offers cloud solutions for generative AI.

Nvidia has tremendous opportunities in data centers and AI factories, which large-language models (LLM) need to crunch the huge loads of data necessary to make generative AI work. Data center revenue increased 73% year over year in the 2026 fiscal first quarter (ended April 26), outpacing total revenue growth of 69%, and the demand is exploding. There were 100 Nvidia-powered AI factories in the first quarter, double the amount last year, with the average number of Nvidia chips in the data centers also double the number of chips used last year.

Nvidia is also incredibly profitable. It sports a 52% profit margin as of the first quarter, and Wall Street is looking for earnings per share of $4.29 in fiscal 2026, up from $2.99 last year.

The road to millions

Even if we've established that Nvidia is a top growth company, that doesn't necessarily mean it can make you a millionaire. Of course, it depends on what you start with, and half a million dollars might make you a millionaire over a few years. However, considering its $4 trillion value and slowing growth, the road to millionaire status might not lead through Nvidia stock for the average investor, even if you have $10,000 to invest.

Turning $10,000 in $1 million implies 10,000% growth. Imagine $4 trillion increasing 10,000% and it becomes clear that this isn't something realistic for Nvidia stock.

If you're looking for the next Nvidia, Nvidia isn't going to be it. But it's a safe bet for growth over time, and it could reach $5 trillion soon. The stock price could reach $200 before the year is out, a 21% gain over today's price, implying a market cap of $4.8 trillion by the end of 2025. It's a winning stock that could be a valuable addition to a diversified portfolio.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Could Investing $10,000 in Nvidia Make You a Millionaire? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert
• 3 fantastic ASX ETFs to buy this month
• Is this the best Vanguard ETF money can buy right now?

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The market has been an incredible wealth-building machine over the past few decades, and the S&P 500 has delivered an annualized gain of 10.7% over the past 20 years. If you've been investing consistently in a carefully curated stock portfolio over a long period of time, you've likely benefited from these gains, and if you start now, you should reap the rewards over the next few decades.

Often, there's one stock in a full portfolio that does most of the heavy lifting. Amazon (NASDAQ: AMZN) has been that stock for many investors, gaining more than 13,000% over the past 20 years alone. If you'd invested $10,000 in Amazon stock at that time, you'd have more than $1 million today. Can Amazon stock still set you up for life?

AI, e-commerce, and more

Amazon is known for e-commerce, which is its biggest segment. It accounts for around 40% of all U.S. e-commerce and also has a massive international business. It is constantly launching new features and services to keep its dominant spot, and it continues to improve its fulfillment speed. Its new regional warehouse design is keeping more products closer to more shoppers, making the last-mile delivery that much faster.

Amazon is also always adding new products to ensure that its Prime customers rely on it for an increasing portion of their purchases. It's moving upscale, adding partnerships with Saks Fifth Avenue and Dolce & Gabbana in the first quarter.

E-commerce is increasing as a percentage of retail sales, and Amazon stands to gain perhaps more than anyone else. In the first quarter, according to the U.S. Department of Commerce, e-commerce accounted for 16.2% of sales in the 2025 first quarter, up from 15.9% last year.

Beyond e-commerce, though, lies its greatest opportunity today, which is artificial intelligence (AI). The AI opportunity is expected to increase at a compound annual growth rate of more than 26% through 2030, and Amazon is developing a comprehensive AI business through Amazon Web Services, its cloud computing segment. AWS itself is driving high growth for the company, and sales were up 17% over last year in the first quarter. The AI business is already bringing in billions for Amazon, and CEO Andy Jassy envisions a shift over the next 20 years or so in which companies switch their tech spend to the cloud to participate in generative AI.

AWS is also responsible for most of Amazon's operating income. It accounted for 63% in the first quarter, driving total operating income of $18.4 billion, a 27% increase year over year.

These are compelling growth businesses, and they don't even include advertising, which is Amazon's fastest-growing business, and some of its smaller businesses. It's in the process of rolling out a satellite broadband business called Project Kuiper, and it's already launched satellites into space, with the goal of offering services, particularly in underserved regions, by the end of the year.

The fourth-largest company in the world

As large as it is today, and it's the second-largest company by sales behind Walmart, Amazon still has huge growth opportunities. But even with all of them, can Amazon stock still deliver life-altering gains?

Usually in these cases, I'll propose different kinds of scenarios to get a hypothetical sense of the potential compound annual growth rate (CAGR) and valuation to see if, realistically, investors can expect a certain outcome. In this case it's easy, because Amazon is already so big. To double, it would need to reach a market cap of $4.6 trillion, and to triple, $6.9 trillion. Although it looks like we're heading in that direction, that's going to take a long time. Keeping the price-to-sales ratio constant, that implies sales doubling or tripling from the current $650 billion, which is massive. At a CAGR of 10%, which is generous over 10 years, sales would reach nearly $1.7 trillion, and market cap would be $4.6 trillion. Unless you invest a huge amount of money to start with, Amazon isn't going to be your ticket to millions.

It could still be an excellent component of a diversified portfolio, but Amazon stock isn't likely to set you up for life.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• How to invest in the AI Build-Out: Expert
• Why ASX investors dumped IVV ETF last month

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has positions in Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Walmart. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

It looks like artificial intelligence (AI) is here to stay. Unlike many catch phrases and buzzwords that have come and gone in the markets over the past few years, AI is driving real-world progress and generating billions of dollars in sales for top companies.

Can it go on? According to Statista, the AI market is expected to increase at a rate of 26.6% annually through 2031, reaching more than $1 trillion. Many of today's best tech companies are giving it their all, developing competitive AI businesses to grab a chunk of that market as it grows. Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Amazon (NASDAQ: AMZN) are all leading the way, and they're three no-brainer AI stocks to buy today.

1. Nvidia

Nvidia is a huge company that's still growing by leaps and bounds. It's a very rare situation for a company that already has $148 billion in trailing-12-month revenue to report growth of 69%, but that's what Nvidia did in its 2026 fiscal first quarter (ended April 27).

It's expecting to slow down, guiding for sales to increase 50% in the second quarter. That's still an unusual and amazing feat for a company of its size.

Nvidia is the leader in its industry, which is semiconductors, or the chips that drive most of today's technology. According to some estimates, it has 95% of the AI chip market. As AI grows, Nvidia gets a huge share of that growth. It's constantly upgrading its technology with new products that can handle higher workloads, ensuring that it stays in the leading position.

Although it has products in multiple categories, it's the AI chips that have catapulted it to the top of the tech heap, brought it to broad market attention, and briefly made it the most valuable company in the world. As it continues to lead and create improved products that all of its partners need, it could get there again soon.

Considering its position and opportunities, it might surprise you that Nvidia stock isn't very expensive. It trades at a forward 1-year P/E ratio of 27, making it a no-brainer buy today.

2. Meta Platforms

Meta is a social media giant, owning brands including Facebook, Instagram, and WhatsApp. It uses AI in many important ways to drive business, from feeding users content they're looking for to keep them scrolling (and viewing ads) to providing a chatbot fueled by its own powerful large-language model.

It operates a solid model driven by its digital advertising business, with daily actives continually rising along with revenue per user and total revenue. Total expenses keep declining as a percentage of revenue, leading to strong profitability. Revenue increased 16% year over year in the 2025 first quarter, while operating income was up 27%.

Meta has a strong hold on literally the entire world's social media. The company had a staggering 3.43 billion people using one of its platforms in the first quarter, and it's monetizing these users through its ad business.

Advertisers continue to move over to digital platforms, and as Meta's algorithms offer them high exposure and the AI creates pinpointed opportunities, the business will likely continue to grow. CEO Mark Zuckerberg envisions a time when an advertiser simply tells the company what its goals and budget are, and Meta takes care of the rest of the process.

Meta is the cheapest stock on this list, trading at only 25 times forward 1-year earnings. It's a top stock with tons of potential at a great price.

3. Amazon

Amazon is building an AI platform that powers applications across businesses. Its Amazon Web Services (AWS) cloud segment is the leading cloud provider in the world, and Amazon is investing more than $100 billion this year to upgrade and expand this platform and offer more features and tools.

It has a three-layer system targeting every kind of client, with its signature Bedrock system at the middle layer, providing clients with a huge assortment of LLMs to create the AI apps. The bottom layer has the tools for developers to create their own LLMs, and the top layer is easy-to-use full solutions for the smaller enterprise. This is driving innovation and AI development across the spectrum.

Amazon is now also creating the chips necessary to develop the apps for smaller customers looking for cheaper options than Nvidia's best-in-class chips.

CEO Andy Jassy sees it getting much bigger. To engage with AI development, clients need to be on the cloud. For example, Amazon just announced that data and tech company Experian is moving over to AWS specifically to engage with AI and create more compelling data analysis tools. As the leader in the industry, Amazon is poised to benefit from this shift over to the cloud, to the tune of hundreds of billions of dollars.

Amazon stock trades at 30 times forward 1-year earnings, and it's a great value that belongs in almost any portfolio.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert
• Why ASX investors dumped IVV ETF last month
• 3 fantastic ASX ETFs to buy this month

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, 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. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Meta Platforms, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Experian Plc. The Motley Fool Australia has recommended Amazon, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Amazon (NASDAQ: AMZN) stock has been an incredible wealth builder for early investors who held on for many years. Even though those days have passed, the company has many long-term growth drivers, and it still has incredible potential. Here's one reason it could soar over the next five years.

The shift to the cloud

While most Americans know Amazon because of its e-commerce marketplace, its greatest opportunities are in Amazon Web Services (AWS), the company's cloud computing segment. AWS sales increased 17% year over year in the 2025 first quarter, and it was responsible for 63% of the company's total operating income.

Amazon is the largest cloud provider in the world, with 30% of the total market, ahead of Microsoft Azure's 21%, according to Statista. As the global leader, Amazon has an edge, and it's investing to keep that edge. It has developed a robust and competitive generative artificial intelligence (AI) platform that's accessible through AWS, and CEO Andy Jassy said that Amazon would spend more than $100 billion this year on AI. He constantly talks about how 85% of company information technology (IT) spend is still on the premises, but that it will flip to the cloud over the next 10 to 20 years. As the largest cloud provider, Amazon has the most to gain from that flip.

According to analytics company Gartner, cloud spend is expected to increase 21.5% this year. It anticipates that by 2027, 90% of companies will adopt what it calls a hybrid cloud approach.

With the largest platform and its massive assortment of services, Amazon is likely to capture a large percentage of that spend, reinforcing its dominant position and moat. As a result, its stock is likely to soar over the next five years and beyond.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Gartner and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia's (NASDAQ: NVDA) stock price growth has slowed in 2025 (it's up only 8% so far), but it continues to beat the market, which is up only 2.1%. Earlier in the year, investors following Nvidia expressed concerns about multiple issues, including a new Chinese artificial intelligence (AI) model that worked using less-expensive (and fewer) chips to process its calculations, as well as changing regulatory policies that could curtail Nvidia's exports to China.

Nvidia remains one of the hottest stocks on the market, and even though it's up roughly 1,470% over the past five years, it's not too late to buy. Here's why.

The opportunity is exploding

Nvidia stock was a winner even before generative AI took off when ChatGPT launched at the end of 2022. It was already successful due to its high-powered graphics processing units (GPUs) that were needed for gaming as well as cryptocurrency mining, but it wasn't so well-known outside of those industries. It's now skyrocketing because generative AI needs powerful GPUs, too, and Nvidia is the leader. With nearly every large tech company in the race to release competitive AI platforms, Nvidia's business has been on fire.

This growing demand is expected to continue, largely because Nvidia's products are capable and versatile. New opportunities continue to pop up in AI, including with data centers. These AI companies need tons of power for AI's computational needs, and they need data centers to manage that workload. Nvidia's revenue increased 69% year over year in the fiscal 2026 first quarter (ended April 27), and data center segment revenue outpaced it, increasing 73%.

The data center opportunity will keep growing along with AI. According to Fortune Business Insights, the data center market was $243 billion in 2024, and it's expected to increase at a compound annual growth rate (CAGR) of 11.7% through 2032, reaching $585 billion.

This is just the beginning for AI, and Nvidia is well-positioned to tap into that high growth.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Think it's too late to buy Nvidia stock? Here's the biggest reason why there's still time. appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The S&P 500 climbed back out of its year-to-date declines and is finally showing gains, up 2% so far this year. The future is uncertain, especially concerning tariffs, and investors are wary.

But that doesn't mean investors are taking a break. Stocks continue to go up and down, with plenty of market beaters and plenty of market laggards; the S&P 500 is an average, after all, and some investors have pretty heated, and often opposing, views on different stocks.

Take Tesla (NASDAQ: TSLA), for example. The Elon Musk-led electric vehicle (EV) powerhouse has certainly minted some millionaires, but it's facing increasing competition, among other issues, and it's down 27% this year -- including a double-digit loss on Thursday after CEO Elon Musk and President Donald Trump publicly sparred over social media. Nvidia (NASDAQ: NVDA) is also a polarizing stock, with the bulls and the bears split on just how big the company's future opportunity really is.

At least one billionaire investor has made his current opinion clear. Hedge fund Third Point, run by billionaire Dan Loeb, has about 45 equity positions. In the first quarter, Third Point sold all of its Tesla and Meta Platforms (NASDAQ: META) stock, and it bought 1.45 million shares of Nvidia stock, worth $157 million, in addition to some other trades. Let's see what investors are thinking about these stocks today.

Out of Tesla

The Third Point hedge fund is described as an "opportunistic, event-driven approach to finding investments." While its portfolio typically only has around 45 stocks, they change frequently. That strategy will influence how it invests, and as with hedge funds in general, it has different goals than the average individual investor who isn't investing billions of dollars.

The fund first bought Tesla stock in the 2024 third quarter and increased its stake in the fourth quarter, finally dumping it all in the 2025 first quarter.

It's not hard to see why investors are worried about Tesla stock right now. The U.S. EV company has tons of new competition, and automotive revenue sank 20% from last year in the first quarter, triggering a 9% decrease in total revenue. Its new robotaxi initiative, which investors are counting on to breathe new life back into the company, may not be the savior the company needs to rebound. There are already other self-driving cars on the road or in the works, and it may take time until the technology is robust enough to be a real revenue booster.

In addition, Tesla took a black eye when Musk was working as a special temporary federal employee and became one of Trump's closest and most controversial advisors. Musk has left the Department of Government Efficiency (DOGE) to return his focus on his businesses as Tesla saw deliveries and profits slump in the first quarter. But now that Musk is publicly sparring with Trump -- and the president is threatening to pull federal contracts from Musk's busineses -- Tesla stock is slumping yet again.

Tesla stock is far from cheap, trading at 164 times trailing-12-month earnings. Tesla stock is up around 68% from the time Third Point bough it, and given its strategy, it looks like it could be a good time to pocket its winnings.

Out of Meta

Meta is the leader in social media and digital advertising, two growing industries. Digital advertising continues to replace print ads, and as a low-cost business, Meta is leveraging its unparalleled platforms to generate high profits. Revenue increased 16% year over year in the first quarter, and net income increased 35%. It has a superlative operating margin that was 41% in the first quarter.

Meta stock isn't quite as polarizing as Tesla or Nvidia, with investors (fairly) uniformly seeing it as a good long-term play. It's up 18% in 2025, beating out the rest of the "Magnificent Seven" stocks.

Third Point bought Meta stock in the 2023 third quarter, and it's up 132% since then. Although Meta is beating the market this year and still has massive opportunities, Loeb and his team might see this as a good time to take their earnings, especially if they were looking for capital to invest in other stocks being driven by current events, like Nvidia.

Into Nvidia

While Third Point made solid money from its investments in Meta and Tesla, it missed out on the massive gains in Nvidia stock, which is up 1,500% over the past five years. Clearly, Loeb thinks that's far from over, and with Nvidia stock down earlier this year and trading at a bargain price, it looked ripe for the picking.

Nvidia stock plummeted in February when news came out about China's cheap DeepSeek artificial intelligence (AI) platform, but Nvidia maintained that it was good news for the entire AI industry, and that its best-in-class chips were only going to be in even greater demand. With two excellent earnings reports since then behind it, the market is reembracing the AI powerhouse.

Revenue increased 69% year over year in the 2026 fiscal first quarter (ended April 27), and demand is strong for its newest Blackwell AI technology. It's a real feat to keep reporting such high growth when it already has $148 billion in trailing-12-month revenue, and it's also incredibly profitable, with $78 billion in trailing-12-month income and a 52% profit margin.

As the unmatched leader in the industry, with constant innovation, Nvidia has massive opportunities up ahead as generative AI becomes a part of daily life and companies need its chips to deliver. As the cherry on top, Nvidia stock trades at only 25 times forward, one-year earnings.

It's easy to see why Loeb thinks it's a good time to buy Nvidia today, and he grabbed it on a dip. Investors can still find value in buying Nvidia stock at the current price.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Meta Platforms, Nvidia, and Tesla. The Motley Fool Australia has recommended Meta Platforms and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

After soaring more than 800% between 2023 and 2024, Nvidia (NASDAQ: NVDA) stock came to a screeching halt this year. Investors are worried about its long-term future, and they're also concerned about how tariffs might hurt it in the short term.

So far, company performance has been easing their fears. Nvidia sailed past expectations in the fiscal 2026 first quarter (ended April 27), and the stock jumped. Can that continue? Let's see whether a $10,000 investment in Nvidia stock today could become $1 million in 10 years.

Can anyone catch its lead?

Nvidia is the leader in graphics processing units (GPU), the chips that drive power-intensive applications like generative artificial intelligence (AI) and gaming. It has as much as 95% of the overall market, and the market, especially for data centers that support generative AI, is expanding rapidly.

It has been a leader in GPUs for years, but its growth accelerated significantly with the development of generative AI, and it continues to experience fantastic growth. Sales increased 69% year over year in the first quarter, beating analyst expectations, and non-GAAP (adjusted) earnings per share (EPS) were $0.81, topping the $0.75 that analysts were expecting.

Huang did give some warnings. Nvidia's top and bottom lines were hit because it's limited by law in what it can ship to China, and it incurred a $4.5 billion charge related to shipments that had to be scrapped in the first quarter. Non-GAAP gross margin was 61% instead of 71.3%, and EPS would have been $0.96. Longer term, Huang is worried that shutting the U.S. out of China gives China an incentive to develop its own strong AI technology.

However, he sees generative AI becoming a basic element of human life. "As AI agents become mainstream, the demand for AI computing will accelerate," he said. "Countries around the world are recognizing AI as essential infrastructure -- just like electricity and the internet -- and Nvidia stands at the center of this profound transformation."

100x in 10 years?

To turn $10,000 into $1 million, Nvidia stock would need to increase a hundredfold, or 10,000%. Over the past 10 years, Nvidia stock has increased by more than 24,000%, and an initial $10,000 investment would now be worth over $2.4 million. Can Nvidia stock achieve that again over the next 10 years?

Sadly, the answer is almost definitely no. Nvidia has $148 billion in trailing 12-month sales. Last year, revenue increased 114%, but it's already slowing down. It's simply much, much harder to report that kind of increase as the base gets bigger. That's why companies like Walmart and Amazon, the two largest in the U.S. by sales, report much lower sales growth (5.1% and 11% respectively last year), even though they're top companies.

If we imagine that sales grow at a compound annual growth rate (CAGR) of 30% over the next 10 years, sales would reach $1.8 trillion, which seems highly unlikely. It's more likely that as the base grows, the rate will slow. If it grows at a CAGR of 20% over the next 10 years, which is also improbable, it would reach $800 billion in sales, which might be more reasonable in 10 years' time. Keeping its current price-to-sales ratio of 26 constant would lead to a market cap of more than $20 trillion, which even in 10 years doesn't seem likely. But even if it were, it would be only about 7 times the current market cap, not 100. A lower price-to-sales ratio would mean a lower market cap, making it even less likely for your investment to increase a hundredfold.

That doesn't mean you shouldn't invest in Nvidia today. It has massive growth opportunities as the top name in its industry. But keep your expectations in check, and don't expect Nvidia to repeat its explosive performance in the next decade.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Can $10,000 Invested in Nvidia Stock Today Turn Into $1 Million by 2035? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has positions in Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Nvidia, and Walmart. The Motley Fool Australia has recommended Amazon and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Amazon (NASDAQ: AMZN) stock gained 11% in May, according to data provided by S&P Global Market Intelligence. While there wasn't any new specific to Amazon, many stocks gained on the pause in tariffs on Chinese goods.

The leading U.S. e-commerce retailer

Amazon has an unbeatable hold on U.S. e-commerce. It has a strong moat in its scale and dominance, and it's always upgrading its platform to stay on top.

CEO Andy Jassy noted on the most recent earnings call that Amazon has several advantages over other retailers in reference to higher tariffs. He pointed out that Amazon mostly sells low-priced essentials, which puts it in a strong position when it comes to tariffs. It works with many sellers and has millions of products, and customers are likely to be able to find what they need somewhere on the platform. On top of that, in times of uncertainty, shoppers tend to shop with a name that they trust, and Amazon has been building that for years.

However, Amazon is still trailing the broader market this year. E-commerce and related services make up about 68% of its sales, and that could be negatively impacted by higher tariffs. Despite the growth in artificial intelligence (AI) and long-term drivers, the market has been worried about tariffs, sending Amazon stock down. So it was pleased with the announcement of a pause in higher tariffs with China.

Much more than e-commerce

AI is already a multibillion-dollar run rate business for Amazon, and it represents its future. "Before this generation of AI," Jassy said, "we thought AWS had the chance to ultimately be a multi-hundred-billion-dollar revenue run rate business. We now think it could be even larger." Amazon is working feverishly to stake its claim as the top generative AI platform in cloud computing. It's already the top cloud business in the world, with 30% of the global market, and it's pouring money into developing a comprehensive generative AI infrastructure, including making its own more budget-friendly chips. Jassy said Amazon would spend north of $100 billion on AI in 2025 alone, more than any other business of its type.

With so much potential at its fingertips, smart investors see a short-term dip as an excellent long-term buying opportunity. Even up in May, Amazon stock is down 6% this year, and it trades at a P/E ratio of 33. That's just above its five-year low of 27, which it hit in April. There may be some lumpiness for the next bit, but expect Amazon stock to rise over time.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Amazon stock gained 11% in May appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• How to invest in the AI Build-Out: Expert
• Why ASX investors dumped IVV ETF last month

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.