Nvidia and Amazon: Top AI Stocks for Long-Term Growth

Nvidia and Amazon are top AI stocks to invest in, with Nvidia's GPUs dominating the market and Amazon's AWS division being the largest cloud infrastructure provider. Nvidia's market cap is expected to surge to $5 trillion, and the stock trades at 39 times forward earnings. Amazon's AWS division sits at the center of the AI revolution and offers a clear differentiation in the data center industry.

Artificial intelligence (AI) has become a dominant force in the technology sector, and the demand for AI infrastructure continues to grow. Two companies that stand out in this space are Nvidia and Amazon, each with its unique strengths and growth potential.

Nvidia: The AI GPU Giant

Nvidia (NASDAQ: NVDA) has been a top AI stock pick for years due to its graphics processing units (GPUs), which are crucial for training and running AI models. The company's GPUs are renowned for their ability to handle complex workloads efficiently. Recently, Nvidia received a significant boost when it was allowed to export its GPUs to China, potentially increasing its revenue growth rate from 50% to 77% [1].

The recent lifting of export restrictions could significantly impact Nvidia's Q3 and Q4 guidance, potentially leading to a surge in its stock price. Despite its recent growth, Nvidia's long-term outlook remains bright, making it an attractive investment for AI-focused portfolios.

Amazon: The Cloud Computing Leader

Amazon (NASDAQ: AMZN) is another top AI stock, particularly through its Amazon Web Services (AWS) division. AWS is the market leader in cloud computing and provides companies with the tools to deploy and build AI-powered applications. The division is experiencing rapid growth, with revenue increasing by 17% in its most recent quarter [2].

AWS accounts for a significant portion of Amazon's profits, contributing 63% of the company's total Q1 profits. This indicates that Amazon's future growth will be heavily reliant on its cloud computing division, which is well-positioned to benefit from the increasing demand for AI workloads.

Investment Considerations

Before investing in Nvidia or Amazon, it's essential to consider the broader market trends and other investment opportunities. The Motley Fool Stock Advisor analyst team has identified several other stocks that could produce substantial returns in the coming years [1, 2]. While Nvidia and Amazon are promising AI stocks, investors should also explore other options to diversify their portfolios.

Conclusion

Nvidia and Amazon are two of the top AI stocks to watch in the current market. Nvidia's GPUs are crucial for AI development, and its recent export license lift could boost its growth significantly. Meanwhile, Amazon's AWS division is the leading cloud infrastructure provider, benefiting from the AI revolution. Both companies offer attractive investment opportunities, but investors should also consider other potential growth stocks to diversify their portfolios.

References

[1] https://finance.yahoo.com/news/4-artificial-intelligence-ai-stocks-093000702.html

[2] https://www.nasdaq.com/articles/4-artificial-intelligence-ai-stocks-could-soar-second-half-2025