Nvidia has benefited greatly from AI spending among big tech companies, but Amazon and Meta Platforms are also seeing strong results from AI investments. Both companies trade at compelling valuations compared to Nvidia, with potential to surpass Nvidia’s value by 2030. The future remains bright for all three companies.

Nvidia’s value has increased by over $4 trillion since October 2022, attributed to tech companies spending on its chips. The four biggest hyperscalers plan to spend around $380 billion on AI infrastructure this year, with expectations of increased spending next year. Nvidia remains a prime beneficiary, but competition and high expectations pose risks to continued growth.

Investors are confident in Nvidia’s ability to maintain sales growth amidst continued AI spending. The company’s revenue surged 69% in the first quarter, driven by high demand for its chips. However, competition from hyperscalers developing custom silicon solutions could impact Nvidia’s growth trajectory and margins, potentially limiting earnings growth.

Amazon, the largest provider of public cloud computing with AWS, is rapidly growing its AI services. While AWS’s 17% year-over-year growth may seem less impressive compared to Microsoft’s 39%, Amazon’s strong top-line growth and improving margins signal steady revenue growth and high earnings potential. Meta Platforms is also leveraging AI to drive revenue growth and unlock profit potential, making it an attractive investment option.

Read more at Yahoo Finance: 2 Artificial Intelligence (AI) Stocks That Will Be Worth More Than Nvidia by 2030