In recent decades, the technology field has produced some of the biggest winners in the stock market, and artificial intelligence (AI) has provided great returns for investors holding the right stocks.
If you have a $3,000 investment right now, the following companies will have good returns over the past decade to deliver great returns. Distributing cash equally in these stocks will cover your hardware and software foundation in the AI market.
The computed horsepower of the graphics processing unit (GPU) is essential to train computer models to think and respond to natural language enquiry. Nvidia' (NASDAQ: NVDA) GPU is the gold standard. The company is experiencing explosive demand, which makes the stock's recent decline a good buying opportunity.
NVIDIA's data center revenue more than doubled last year and now accounts for 90% of its business. Investors are counting on the company's new Blackwell computing system to drive revenue growth of 54% this fiscal year.
Blackwell aims to bring significant performance improvements to the previous hopper generation chips for AI missions. AI models from OpenAI, XAI and others are becoming increasingly complex in solving complex problems and talking to humans on many topics. Improving the computing power of next-generation AI models will increase by 100 times per task, which should benefit NVIDIA.
Some of Nvidia's customers, including OpenAI, are investing in their own custom AI chips, which poses a risk. That's one of the reasons why NVIDIA stock has fallen so far, but these concerns may be too exaggerated.
NVIDIA not only sells chips to model manufacturers for specific workloads. Its GPU can be used for a variety of computing purposes. For example, Mayo Clinic is building a state-of-the-art digital pathology laboratory to accelerate diagnosis and treatment in healthcare using NVIDIA's DGX computing platform.
Nvidia offers such solutions to multiple industries, which is a competitive advantage. This advantage can be seen through its excellent profit margins. Last year, NVIDIA made $73 billion in net income, with revenue of $130 billion.
Consensus analysts estimate that the company's earnings are growing at a rate of 35% per year over the next few years. These prospects make NVIDIA stock attractive at current share prices, with earnings estimated this year at just 26 times.
Companies are increasingly turning to cloud and artificial intelligence services to improve productivity, and Microsoft (NASDAQ: MSFT) is one of the top providers they are turning to. It is the top brand in software, with devices with more than 1 billion running windows. The company's latest quarterly update shows its momentum.
Last quarter, Microsoft's revenue grew 15% year by year and revenue increased by 19%. Among each segment, most notably drives growth in the cloud, with Microsoft Azure up 35% year-on-year.
AI has become a major investment for large enterprises, as AI services contributed nearly half of Azure's growth in the last quarter. This is more than twice the revenue contribution of AI a year ago. Microsoft saw the need to accelerate and noticed Abercrombie & Fitch,,,,, Coca Colaand ServiceNow Recently expanded business with Azure.
Microsoft shares were sold earlier this year because the company's revenue growth did not meet expectations implied by its advanced valuation. But the largest data center operators, including Microsoft, can meet the growing demand for AI services in the long run. These large tech giants have a lot of resources to invest in technology, which is expanding their competition for nurses.
Microsoft reports that thousands of customers in various industries are using its Copilot AI assistant. That's three times higher than this time last year, and management said the company's new co-driver transactions are growing.
Microsoft is a effortless stock that can be purchased and held. It is financially rock-fixed with net income of $96 billion, compared with $270 billion last year. Analysts expect the annual growth rate to be 12%, which should result in comparable shareholder returns.
Ever felt you missed the ship to buy the most successful stock? Then you will need to hear this.
On rare occasions, our team of analysts and experts published "Double Down" stock Suggest companies they think are about to be popular. If you are worried that you have missed the opportunity to invest, now is the best time to buy before it’s too late. Numbers talk to themselves:
Nvidia: If you invested $1,000 when you doubled in 2009, You'll have $302,503! *
apple: If you invested $1,000 when you doubled in 2008, You will have $37,640! *
Netflix: If you invested $1,000 when you doubled in 2004, You will have $614,911! *
Currently, we are sending a "double decline" alert for three incredible companiesavailable when joining Stock Consultantand soon there may be no other chance.
View 3 stocks »
*As of May 5, 2025, stock consultant returns
John Ballard holds a position in Nvidia. Motley fool has a place and recommends Microsoft, Nvidia and ServiceNow. Motley Fools suggest the following options: January 1, 2026, Microsoft $395 Phone, Short January 2026, Microsoft $405 Phone. Motley Fool has a disclosure policy.
Have $3,000? 2 Artificial Intelligence (AI) Stocks Originally Published by Motley Fool