In just a few years, Nafidia (Nasdaq: nvda) Become Elderly Arrows in the world. In fact, as of writing this report, the company is a maximum of more than $ 3.5 trillion, only a little appendix Microsoft As the largest company in the world according to the maximum market.
The engine that prompted the shares of NVIDIA to these amazing high heights in this field was Graphics processing units (graphics processing units)any Preferred By artificial intelligence developers (AI) for their strength and speed.
However, while the revolution of artificial intelligence revolves aroundOther companies may replace Nafidia. Regardless of the inevitable battle of GPU market shareOther companies may Be in a better position To take advantage of the next The stages of the artificial intelligence revolution. There is one arrow that tells me the investment contracts that must be seen.
Photo source: Getty Images.
There are two things that stand From about the rise in NVIDIA over the past three years: growth of revenues and margin.
First, the company’s revenues simply He went through the ceiling as the artificial intelligence revolution took a journey. In 2022, NVIDIA achieved about $ 27 billion of revenues. As of the last quarter (for a period of three months ending on January 26), the company reported the revenue of $ 130 billion. This is shocking rapid growth, that is why It is often cited for a reason The NVIDIA share price is offered by more than 800 %.
butIn addition to the growth of amazing revenuesThe company’s margins widened. In 2022, the company’s total margin reached about 60 %. Today, about 70 %. This is excellent and is very excited by the company’s traditional competitors Provide small devices and Intel.
However, like all good things, this total margin dominance will to Come to It ends in some a point, With high temperatures. AMD and Intel will not improve their designs and take the market share, but new competitors will enter the market. Players with depths such as alphabetand Amazonand Microsoftand Definition platformsAnd apple All of them work on their Amnesty International SIM Designs This may eventually eat NVIDIA margins.
So, because this market for artificial intelligence chips becomes more saturated, who will benefit? My investment instincts indicate a senior buyer of artificial intelligence chips.
Ultimately, the principles of the basic economy say that the buyer of artificial intelligence chips will benefit because the artificial intelligence chips market becomes more competitive. That is, like the price of artificial intelligence chips He fallsCompanies that buy most chips will save money, which leads to high profits.
This is great news for Amazon, Because, as the world’s leading cloud services provider, you will need to spend it significantly on artificial intelligence chips for years To come.
Amazon, through the Amazon Web Services Department, controls about 30 % of the cloud service market. This may not seem impressive, but looking at this: the market share of Amazon is almost equal the next The largest provider total – Microsoft and Alphabet.
Moreover, the cloud infrastructure market is enormous (in About 700 billion dollars) and Red-Hot, growth in about 15 % on an annual basis. The rise of artificial intelligence systems He only adds Fuel for fire, While companies are looking for artificial intelligence -based artificial intelligence to provide higher sales and lower costs.
In short, you can see the next stage of the artificial intelligence revolution that the focus turns away from the infrastructure of Amnesty International (GPU) and towards operations Amnesty International, While companies pour resources in cloud -based systems, which help their organizations.
Nafidia is still the king of artificial intelligence – at the present time. However, with the development of the artificial intelligence revolution, companies in the cloud services market can be the real winners. Moreover, Amazon stocks, with its main position in this main market, can eventually excel on the long -term NVIDIA shares.
Before buying shares in NVIDIA, think about this:
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Look at whenNetflixThis list was submitted on December 17, 2004 … if you invest $ 1,000 at the time of our recommendation,You will have $ 659171! Or when NafidiaThis list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation,You will have 891,722 dollars!
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John Maki, former Chole Foods Market, a affiliate company, a member of the Motley Fool Board of Directors. Susan Fry, CEO of Alphabet, is a member of the Motley Fool Board of Directors. Randy Zuckerberg, former Director of Market Development and Speak for Facebook and Sister to Meta Platforms, Mark Zuckerberg, member of Motley Fool Board of Directors. Jake Lersche It contains parking in Alphabet, Amazon and Nvidia and has the following options: Long JULY $ 2025 $ 150 calls on advanced and long -term delicate devices July $ 425 on Microsoft. Motley Fool has positions in advanced advanced, alphabet, Amazon, Apple, Intel, Meta Platforms, Microsoft, and NVIDIA. The Motley Fool recommends the following options: Since January 2026, $ 395 on Microsoft, August August 2025 $ 24 calls to Intel, and shortening in January 2026 $ 405 on Microsoft. Motley deception has Disclosure.