History can be an amazing teacher on Wall Street for those willing to listen. Data shows that every rolling 20-year period for the S&P 500 since 1900 has generated a positive total return. Only 10 public companies have ever joined the trillion-dollar club, including Berkshire Hathaway and Taiwan Semiconductor Manufacturing.

Nvidia, a trillion-dollar AI stock, has seen its market cap climb by almost $4.2 trillion since 2023. Its AI-GPUs and CUDA software platform have been driving its growth, but history indicates caution. Previous technological advancements have navigated through bubble-bursting events, and competition in next-big-thing investments is inevitable.

On the other hand, Meta Platforms, another trillion-dollar club member, is a smart buy according to history. With a focus on advertising revenue and AI applications from a business standpoint, Meta has a strong balance sheet and a reasonable forward P/E ratio. The company’s history of exceptional ad-pricing power and the nonlinearity of economic cycles suggest a bright future.

Before investing in Nvidia, consider the advice of the Motley Fool Stock Advisor analyst team, who have identified the 10 best stocks for investors. While Nvidia has seen significant growth, history shows that other stocks recommended by the team have produced monster returns in the past. Join Stock Advisor to access the latest top 10 list and potentially benefit from market-crushing returns.

Read more at Nasdaq: History Suggests 1 Trillion-Dollar Artificial Intelligence (AI) Stock Makes for a No-Brainer Buy, While Another Is Treading in Dangerous Territory