Prediction: 2 Artificial Intelligence (AI) Stocks That Will Be Worth More Than Nvidia 3 Years From Now

Core Viewpoint - Nvidia has been a significant beneficiary of the rise of generative AI, with its stock price increasing nearly eightfold since the launch of OpenAI's ChatGPT, but two other companies, Meta Platforms and Amazon, may have better long-term prospects and could potentially surpass Nvidia's valuation in the coming years [2][4]. Nvidia - Nvidia's market capitalization is approximately $2.9 trillion, and its strong financial results are expected to continue into 2025 as major tech companies plan to invest tens of billions in AI data centers equipped with Nvidia's GPUs [2][3]. - Despite the ongoing demand, there is a growing long-term vulnerability to Nvidia's business model as software innovations may reduce the need for advanced hardware [3]. Meta Platforms - Meta Platforms is one of Nvidia's largest customers, planning to invest between$60 billion and $65 billion in capital expenditures in 2025, including a new data center in Louisiana filled with Nvidia GPUs [5]. - The company has improved its recommendation algorithms significantly, leading to a 6$3 trillion valuation within three years if earnings grow at a high teens rate [9][11]. Amazon - Amazon's free cash flow has surged from negative $19.7 billion to$47.7 billion over the past year, driven primarily by its cloud computing business, AWS [12]. - The company has seen a 60% increase in operating income over the trailing 12 months, largely due to margin expansion and improvements in its logistics network [14][16]. - Amazon is investing heavily in AWS and e-commerce, with capital expenditures expected to reach about $75 billion in 2024, which could lead to significant free cash flow growth and a potential$3 trillion valuation in the next few years [17][18].