So far, Nvidia has been the big winner of artificial intelligence (AI), but these two companies could have better long -term prospects.
Few companies have benefited from the rise Generative artificial intelligence (Ai) as much as Nvidia (Nvda 0.90%)). The flea manufacturer saw its stock market course increase by almost eight-mine compared to the launch of the Openai chatgpt on November 30, 2022, until the end of 2024. He briefly spent time as a business The most precious in the world, and its current market capitalization is around 2.9,000 billion dollars to date.
The solid financial results of NVIDIA seem to continue in 2025 while Big Tech plans to spend tens of billions of dollars on AI data centers equipped with its GPUs. Technological companies have remained in their expense plans, even after In depthThe R1 Open Source model has shown the economy potential of software innovations on adding more advanced equipment. However, there is now a long -term vulnerability more apparent to Nvidia’s milk cow than many investors have seen previously.
Two other AI leaders have seen their long-term perspectives improve recently, and this could lead everyone to go beyond the assessment of the semiconductor giant in a few years, if not earlier. Here are two companies that could see their actions more value than Nvidia in three years.
Image source: Getty Images.
1. Meta Platforms
Meta-platforms (Meta 0.35%)) is one of Nvidia’s largest customers. The company behind the social media platforms Facebook, Instagram and WhatsApp were engaged between 60 billion and 65 billion dollars Capital expenditure In 2025, including plans to build a massive data center in Louisiana. This data center will be filled with GPU, mainly supplied by Nvidia.
There is a good reason for Meta’s continuous investment in AI. It should massively benefit from innovations for the past two years. It is already seen from significant improvements to its recommendation algorithm for content on Facebook and Instagram by making it evolve towards a more general model according to the principles it has learned in Great language models.
The result is a higher commitment and better targeting of ads. This is attested by the 6% increase in MA impressions and the 14% increase in the average price per announcement in the last quarter.
Regarding generating AI, Meta also has a lot to win. It can make content creation more accessible to more users, further increasing the commitment and active number of users. These are tools that allow marketing specialists to more easily create and test advertising campaigns. Its advantage in Ai Advantage + Shopping campaigns has fueled an advertising value of $ 5 billion in the fourth quarter, and adoption increases rapidly.
More on the road, the meta has a huge Opportunities with IA chatbots For companies on WhatsApp. He also joined his Meta AI service in all his products, including Ray-Ban meta-lunes. As Meta Ai goes to 1 billion users, he could become another source of income for the company.
Meta’s actions are negotiated 27.8 times the estimates of the long -term profits, at the time of writing today. The multiple seems much more attractive if you look at the benefits before interest, taxation, depreciation and amortization (EBITDA) with a corporate value– EBITDA ratio at the front of only 15x. The meta should feel important depreciation fees In the coming years, following his massive step in capital expenses. But if its investments are paid as expected, it is well worth the price of Meta shares in its current evaluation.
Meta could be a stock of 3 dollars of dollars within three years by maintaining a P / E ratio in the mid -1920s, while increasing the profits at a rate in high adolescents. If Nvidia’s actions stagnate during this period while Big Tech seeks to make AI profitable, it could exceed the market value of the chip giant.
2. Amazon
Amazon (Amzn -4.05%)) has seen its profitability explode in the past two years. Available cash flow Started from $ 19.7 billion negative dollars for the 12 months ending in September 2022 to 47.7 billion dollars for the last period of 12 months. And this growth seems to continue in the coming years.
The largest engine of Amazon’s recent success is its Cloud Computing Business, Amazon Web Services or AWS. Amazon operates the largest public cloud platform, and its construction tools to help developers build above advanced foundation models for a generative AI.
While Amazon was captured flat in 2023 while the competitors developed quickly, it rebounded in 2024. After a flat year of operating income in 2023, it has skyrocketed in 2024, climbing 60% within 12 months at the end of September. This was largely fed by expansion of margins as operations have evolved to make up for its investments.
Amazon has also increased the profitability of its main segment of electronic commerce in several important ways. First, its main membership program continues to be extremely popular, which leads to strong growth in subscription income. Second, advertising develops on its market and on a first -rate video, offering an extremely high revenue of income.
Finally, the improvements in its logistics network and its operations allowed it to reduce its shipping costs per paid unit, increasing its operating margin. In fact, the North American exploitation margin of Amazon reached 5.9% in the 12 months of the end, and its international report segment became positive in mid-2024.
Amazon invests a lot of money in the construction of AWS and its electronic commerce activities. Management expects capital expenses for 2024 to reach approximately $ 75 billion, and it plans to spend even more in 2025. But Amazon has greatly made capital expenses before retiring and leaving These investments produce solid cash flow available. When the management removes the foot of the pedal and seeks to make the most of its spending, it should see another intensification of the available cash flows.
Amazon’s actions are currently negotiated for approximately 59 times available cash flows, slightly above its historic average around 50 years. While this growth in available cash flows materialize in the coming years, Amazon should see the increase in the course of its shares, even if this multiple decreases. This could easily lead to an evaluation of 3 billions of dollars for the action over the next two years, ultimately exceeding Nvidia.
Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Adam Levy has positions on Amazon and Meta Platforms. The Motley Fool has positions and recommends Amazon, Meta Platforms and Nvidia. The Word’s madman has a Disclosure policy.