From Nasdaq: 2024-05-07 08:17:00

In the race for artificial intelligence (AI), software companies like Palantir and CrowdStrike are using AI to analyze data and provide cybersecurity. Hardware companies like Nvidia are developing high-powered semiconductors, while companies like Marvell Technology create Ethernet switches. Cloud providers benefit from AI data needs, and consulting firms like Accenture help businesses with AI tools.

Nvidia’s stock has surged over the past year, reaching a market cap exceeding $2 trillion and surpassing Amazon. However, Amazon Web Services (AWS) remains a key player in cloud services for AI programs, with sales growing 17% in Q1. Despite a drop in growth in 2023, AWS benefited from increased data budgets in 2024, driving Amazon’s earnings.

Amazon’s diverse revenue streams, including advertising and AI products like Amazon Bedrock and Inferentia chip, position it for long-term success. While Nvidia is a significant player, Amazon’s multiple revenue streams may outperform Nvidia. The Motley Fool’s Stock Advisor team identified 10 stocks for potential high returns, with Amazon not included in the list.

Disclosure: The author holds positions in Alphabet, Amazon, CrowdStrike, and Nvidia. The Motley Fool has positions in and recommends Accenture, Alphabet, Amazon, CrowdStrike, Microsoft, Nvidia, and Palantir Technologies. It also recommends Marvell Technology and options for Accenture and Microsoft. The views expressed do not necessarily reflect those of Nasdaq, Inc.



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