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Nvidia has been a surefire AI winner in recent years, soaring 1,400%, thanks to demand for its products.
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Two other AI players also offer promising futures in this high-growth field.
Nvidia (NASDAQ: NVDA) has been a no-brainer buy for investors over the past couple of years. The stock has delivered both earnings and stock price performance as demand heated up for its full range of artificial intelligence (AI) products and services -- with the star being Nvidia's AI chips. The company has built its position as AI chip leader by entering the market early and focusing on innovation.
And though Nvidia stock has climbed 1,400% over the past five years, it still has plenty of room to run as the AI boom enters its next phases of growth. But Nvidia isn't the only attractive AI stock around, and that means other stocks also may help you to score an AI victory. And some might even make more compelling buys than this AI star right now. Should you forget Nvidia and buy the following two AI stocks right now? Let's find out.
Meta Platforms (NASDAQ: META) has made AI its investment priority over the past few years as it developed its own large language model (LLM), Llama, to drive its AI platform. You probably know Meta best for its social media leadership as it owns apps many of us use daily, such as Facebook and WhatsApp -- and these apps drive revenue for Meta as advertisers promote their offerings there to reach us.
Llama already has helped Meta advance in AI, powering Meta AI, the world's most popular AI assistant. The idea is this -- and potentially other AI tools -- will prompt us to spend more time on Meta's apps, and advertisers then may aim to spend even more on advertising here. On top of this, Meta aims to lead in the overall development of AI, and success here could be big for the company down the road. Chief executive Mark Zuckerberg recently formed Meta Superintelligence Labs to focus on AI development and has aggressively hired the industry's top talent.
It's clear that Meta is well-positioned to lead in this high-growth field, and the company also has the strong financial position -- with the ability to allocate as much as $72 billion to capital spending this year -- to support its goals. This is thanks to Meta's social media moat, or competitive advantage -- people don't easily switch as they know most of their contacts probably won't follow them to a lesser-known platform. And all of this helps Meta's revenue to continue climbing.