From Nasdaq: 2025-06-21 07:00:00

Nvidia (NASDAQ: NVDA) has quickly risen to become one of the largest stocks globally with a market cap exceeding $3.5 trillion, closely trailing Microsoft. The company’s success is driven by its industry-leading GPUs favored by AI developers for their power and speed, contributing to its revenue growth and margin expansion.

While Nvidia currently dominates the AI chip market, competition from other companies like AMD and Intel, as well as new entrants like Alphabet, Amazon, Microsoft, Meta Platforms, and Apple, could challenge its market share and margins. As the market becomes more saturated, companies that are major buyers of AI chips, like Amazon, could benefit from falling chip prices, leading to higher profits.

Amazon, as a leading cloud services provider with a 30% market share, is poised to gain from the competitive AI chip market. With the cloud infrastructure market growing rapidly, the focus is shifting towards practical AI solutions, offering potential for companies investing in cloud-based AI-enhanced systems to improve operations and lower costs.

Investors considering Nvidia should note that the Motley Fool Stock Advisor team has identified 10 top stocks for investment, excluding Nvidia. The team’s picks have historically delivered significant returns, outperforming the S&P 500 by a wide margin. As the AI revolution evolves, companies in the cloud services market, like Amazon, could outperform Nvidia in the long run.



Read more at Nasdaq: Nvidia Stock Prediction, From Someone Who Has Invested for Decades