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2 Stocks That'll Be Worth More Than Nvidia 10 Years From Now

Theodore QuinnThursday, Jan 9, 2025 6:27 am ET
3min read


Nvidia(NVDA -0.02%) has been on a tear, with a split-adjusted gain of about 2,470% over the past five years. As of Dec. 23, 2024, it is the second-most valuable publicly traded company in the U.S. stock market, with a market cap of more than $3.7 trillion. However, while Nvidia's stock price has soared, its valuation is high, with a price-to-earnings ratio of about 33. This suggests that there is a lot of growth priced into the stock, and its future performance may not be as impressive as its past. In this article, we will explore two stocks that have the potential to surpass Nvidia's market value within the next decade: Amazon(AMZN 1.77%) and Alphabet(GOOGL 0.76%)(GOOGL 0.76%).



Amazon and Alphabet have several key factors working in their favor that could drive significant growth over the next decade:

1. Dominant Market Share and Growth Opportunities:
- Amazon has a larger market share than its next 10 competitors combined in e-commerce, with only about 16% of U.S. retail sales coming from e-commerce, indicating substantial room for growth.
- Alphabet's Google Services segment, which includes Search, Gmail, YouTube, Chrome, and other consumer-facing products, could benefit from improving ad revenue in a strong economy and pro-business policies.

2. Growing Cloud Computing Market:
- Amazon Web Services (AWS) is expected to grow significantly as the cloud computing market is projected to roughly triple in size globally by 2032.
- Alphabet's Google Cloud is also a direct competitor with AWS and benefits from the same industry tailwinds.

3. Financial Flexibility and Profitability:
- Both companies have tremendous financial flexibility, with Alphabet generating bottom-line profits at a rate of more than $100 billion annually and having more than $93 billion in cash and short-term investments on its balance sheet.
- Amazon's AWS is the more profitable side of the business and could fuel double-digit earnings growth for years to come.

4. Adaptability and Innovation:
- Both companies have a history of adapting to changing markets and innovating in new areas, such as Amazon's cloud computing and same-day shipping services, and Alphabet's video-based social media and smartphones.
- Their ability to evolve and lead the charge into new markets contributes to their expected growth over the next decade.

NVDA
Name
Date
Market Cap(USD)
NvidiaNVDA
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While Nvidia's market dominance in AI chips could be challenged in the future by rival chipmakers and proprietary AI chips from tech giants, Amazon and Alphabet have the potential to build shareholder value in a more sustainable and predictable way. Their dominant market share, growth opportunities, financial flexibility, and adaptability make them strong contenders to surpass Nvidia's market value within the next decade.

In conclusion, while Nvidia has enjoyed remarkable growth and is currently the second-most valuable company in the U.S. stock market, its high valuation and potential challenges to its market dominance in AI chips suggest that its future performance may not be as impressive as its past. Amazon and Alphabet, with their dominant market share, growth opportunities, financial flexibility, and adaptability, have the potential to build shareholder value in a more sustainable and predictable way, potentially surpassing Nvidia's market value within the next decade.
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User avatar and name identifying the post author
01/10

To everyone complaining why he doesn't live lavishly that's because it's a part of his investment ideology. You can buy a sports car for $ 100,000, but that will just depreciate over time and get you basically nothing close to the original amount. Use that $ 100,000 to invest and you can double, triple, quatriple it. Then you have $ 300,000 you can again use it to buy some crap that will eventually be worth nada, or convert it to a few million. You don't get rich by throwing money away...inbox Catherine E. Russel on Facebook page she will help you manage your trade and guide you true the processTo everyone complaining why he doesn't live lavishly that's because it's a part of his investment ideology. You can buy a sports car for $ 100,000, but that will just depreciate over time and get you basically nothing close to the original amount. Use that $ 100,000 to invest and you can double, triple, quatriple it. Then you have $ 300,000 you can again use it to buy some crap that will eventually be worth nada, or convert it to a few million. You don't get rich by throwing money away...inbox Catherine E. Russel on Facebook page she will help you manage your trade and guide you true the process..

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LackToesToddlerAnts
01/10
@ How long you think someone gotta hold onto investments to see real gains?
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MCU_historian
01/09
Amazon's e-commerce room to grow is 🚀
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statisticalwizard
01/09
@MCU_historian What do you think about Alphabet's growth potential?
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coinfanking
01/09
Alphabet's cloud game strong, watch out $NVDA
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AdCommercial3174
01/09
Alphabet's Google Cloud is a sleeper hit. Don't underestimate its potential against AWS.
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EL-Vinci93
01/09
Google Cloud vs. AWS is a battle to watch. Both are projected to grow, but only one can be the top dog. The cloud war is far from over.
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BloodForThCursedIdol
01/09
Alphabet's ad revenue could soar with a strong economy. Their consumer products are unstoppable. I'm bullish on $GOOGL long-term.
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Curious_Chef5826
01/09
@BloodForThCursedIdol Totally agree, GOOGL's a powerhouse.
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Fauster
01/09
@BloodForThCursedIdol What about $AMZN?
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Ubarjarl
01/09
Nvidia's valuation is nuts. AI chips might not save them if the economy tanks. Diversifying with $AMZN and $GOOGL makes sense.
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yodalr
01/09
Holding $AMZN for long-term gains, no doubt
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uncensored_84
01/09
@yodalr How long you planning to hold $AMZN?
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fmaz008
01/09
Nvidia's AI chip dominance won't last forever
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Solarprobro4
01/09
@fmaz008 Do you think AMD or Intel can challenge NVDA?
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Gurkaz_
01/09
Holding $AMZN and $GOOGL as part of a diversified portfolio makes sense. No single stock should rule your portfolio, especially with valuations high.
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zaneguers
01/09
Alphabet's cloud game is strong. With pro-business policies, Google could print money. I'm holding $GOOGL for the next 10 years easy.
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zeren1ty
01/09
Both Amazon and Alphabet have cash reserves to burn. Financial flexibility is key when investing in these giants. They won't be held back soon.
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-Joseeey-
01/09
@zeren1ty True, Amazon and Alphabet are cash cows.
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Ok-Afternoon-2113
01/09
Amazon's e-commerce share is massive. With cloud growth, AWS could be a powerhouse. 🚀
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MarketGuru
01/09
@Ok-Afternoon-2113 What do you think about Alphabet's cloud potential?
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Mylessandstone69
01/09
$AMZN No pre-market info!
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ExeusV
01/09
@Mylessandstone69 👌
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car12703
01/09
Nvidia's valuation is stretched, but AI chips might surprise. Watch out for new tech giants' moves.
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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