The Motley Foolยท2025-08-08 21:00Core Insights - The excitement surrounding artificial intelligence (AI) has significantly increased stock prices for major tech companies, with Nvidia's market cap exceeding $4 trillion since the launch of ChatGPT in late 2022 [1][2] Company Summaries Amazon - Amazon Web Services (AWS) is the largest public cloud computing platform, generating $116.4 billion in the last 12 months, approximately 50% larger than Microsoft's Azure [5] - AWS experienced a decline in operating margin due to stock-based compensation timing and significant investments in capacity, but it maintains higher margins than smaller competitors [7] - Despite a recent stock price drop following disappointing earnings, Amazon's long-term potential, especially in AWS, remains strong, presenting a buying opportunity for long-term investors [9] Salesforce - Salesforce's Data Cloud has seen a 120% year-over-year growth in recurring revenue, reaching $1 billion in the most recent quarter, with strong adoption in major deals [11][12] - The company is well-positioned to benefit from increased spending on AI, as its software suite is deeply integrated into enterprise operations, making it difficult for companies to switch away [13] - Shares are trading at 22 times forward earnings estimates, indicating a favorable buying opportunity [13] Meta Platforms - Meta is projected to spend between $66 billion and $72 billion on AI capital expenditures, positioning itself as a major player in generative AI [14] - The company reported a 22% revenue increase and a 38% growth in operating income, driven by AI-enhanced advertising and user engagement [18] - Meta shares trade at an attractive valuation of around 16 times forward EBITDA estimates, and 27 times forward P/E, suggesting strong investment potential [19][20]