AI Insights

Better Artificial Intelligence Stock: Nvidia vs. Meta Platforms

Published

2 days ago

July 5, 2025

Artificial intelligence (AI) stocks have proven to be big winners for investors lately — particularly last year, when some leading players in the space delivered double- and even triple-digit percentage gains. Though these high-growth companies’ share prices tumbled earlier this year due to concerns about President Donald Trump’s tariff plans, investors have recently returned to this compelling story.

Trump’s trade talks and tentative agreements on the frameworks of deals with the U.K. and China have boosted optimism that his tariffs won’t result in drastically higher costs for U.S. consumers or major earnings pressure on U.S. companies — in contrast to the worst-case scenario that many had feared. As a result, investors feel more comfortable investing in companies that rely on a strong economic environment to thrive — such as AI sector players.

This means that many investors are once again asking themselves which AI players look like the best buys today. Nvidia (NVDA 1.33%) and Meta Platforms (META 0.73%) are both aiming to reshape the future with their aggressive AI plans. If you could only buy one, which would be the better AI bet now?

Image source: Getty Images.

The case for Nvidia

Nvidia already has scored many AI victories. The company has built an empire of hardware and services that make it the go-to provider for any organization creating an AI platform or program. But the crown jewels of its portfolio are its graphics processing units (GPUs). It offers the top-performing parallel processors, and thanks to both its ecosystem and manufacturing lead, they’re also by far the best-sellers in their class. With demand from cloud infrastructure giants and other tech sector players still outstripping supply, Nvidia has been growing its sales at double- and triple-digit percentage rates, and setting new revenue records quarter after quarter.

In its fiscal 2025, which ended Jan. 26, Nvidia booked a 114% revenue gain to a record level of $130 billion. And the company isn’t just growing its top line — its net income surged by 145% to almost $73 billion as it continued to generate high levels of profitability on those sales.

Nvidia’s clients today rely heavily on its hardware to power their projects, as its GPUs are some of the best chips available for the training of large language models (LLMs), as well as for inferencing — the technical term for when those trained models are used to process real data to solve actual problems or make predictions. And Nvidia is helping customers with so much more — from the design of AI agents to the powering of autonomous vehicle systems and drug-discovery platforms.

Nvidia also is innovating steadily to stay ahead of rivals. It recently shifted to an accelerated schedule that will have it releasing chips based on new and improved architectures every year; previously, it rolled out new architectures about once every two years. So this company is likely to keep playing a major role in the evolution of AI throughout its next chapters.

The case for Meta Platforms

You will know Meta best as an owner of social media apps, some of which you probably use every day — its core “family of apps” includes Facebook, Messenger, WhatsApp, and Instagram. And the sales of advertising space across those platforms have provided billions of dollars in revenue and profits for the company.

But today, Meta’s big focus is on AI. The company has built its own LLM, Llama, and made it open source so that anyone can contribute to its development. The open-source model can result in the faster creation of a better-quality product — and in this case, it could help Meta emerge as a leader in the field. The company has put its money where its mouth is: It plans as much as $72 billion in capital spending this year to boost its AI presence. And just recently, Meta has been hiring up a storm in its efforts to staff its newly launched Meta Superintelligence Labs. That business unit will work on foundation models like Llama as well as other AI research projects.

In a memo to employees regarding the new AI unit, Meta CEO Mark Zuckerberg highlighted why it’s well positioned to lead in AI development: “We have a strong business that supports building out significantly more compute than smaller labs. We have deeper experience building and growing products that reach billions of people,” he said.

Those points are true, and they could help Meta reach its goals — and deliver big wins to investors over time.

Which stock is the better buy?

From a valuation perspective, you might choose Meta, as the stock is cheaper in relation to forward earnings estimates than Nvidia — a condition that has generally been the case.

NVDA PE Ratio (Forward) data by YCharts.

But a closer look shows that while Nvidia’s valuation is down since the start of the year, Meta’s actually has climbed.

NVDA PE Ratio (Forward) data by YCharts.

With that in mind, Nvidia looks like a more appealing buying opportunity, especially considering the company’s ongoing strong growth and its involvement in every area of AI development and application in real-world situations. Meta also could emerge as a major AI winner down the road, and the stock is still reasonably priced today in spite of its gains in valuation. But Nvidia remains the key player in this space — and at today’s valuation, it’s the better buy.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.

Source link

AI Insights

2 Artificial Intelligence (AI) Stocks That Could Help Make You a Millionaire

Published

26 minutes ago

July 7, 2025

The Editors

The cat is out of the bag with artificial intelligence (AI). Trillions of dollars in value have been added to stock portfolios on the backs of the AI revolution in just a few years. Nvidia is knocking on the door of a $4 trillion market capitalization. It is difficult to find undervalued AI stocks right now.

But it is not impossible. Here are two AI stocks — ASML (ASML -0.73%) and Alphabet (GOOG 0.51%) — that look undervalued and can help investors become millionaires if they buy and hold for the long term.

Image source: Getty Images.

Helping build advanced computer chips

ASML is the leading seller of lithography equipment for making advanced semiconductors. In some cases, it is the only provider on the market. Lithography in this case is the use of lights and lasers to print tiny patterns on objects such as semiconductors. Advanced semiconductors require intricate designs over microscopic areas, which helps them generate more efficient computing power for AI applications.

With its advanced extreme ultraviolet lithography systems (EUV), ASML is the only provider of machines that help make advanced semiconductors for the likes of Nvidia. This makes it a vital point in the semiconductor supply chain and a monopoly seller of its equipment today. Not a bad place to be in when semiconductor demand is soaring because of the insatiable need for more AI computer chips.

Over the past 12 months, ASML generated $33 billion in revenue, which has grown a cumulative 353% in the last 10 years. Operating income has grown 551% to $11 billion. The company’s growth is not linear because of lumpy equipment sales to large factories and the cyclicality of the semiconductor industry, but over the long term, demand prospects look fantastic. Manufacturers are planning hundreds of billions of dollars in capital expenditures to build new semiconductor factories. These factories will be stuffed with ASML lithography equipment.

ASML has a trailing price-to-earnings (P/E) ratio of 33. This is not dirt cheap in a vacuum, but I believe it makes the stock undervalued because of its future growth prospects, which will bring this P/E ratio down to a much more reasonable level. Buy ASML stock today and hold on tight for the long term.

ASML PE Ratio data by YCharts

AI for consumers and enterprises

One of the reasons for the increased demand for computer chips and ASML equipment — perhaps the largest reason — is Alphabet. The owner of Google, Google Cloud, YouTube, Waymo, and Gemini keeps doubling down on AI.

The big technology company can win in AI by playing two fronts: consumer and enterprise applications. With everyday users it is adding new AI tools to Google Search while building out advanced conversational AI with the Gemini application. Gemini now has an estimated 350 million active users and is growing rapidly, although it is still smaller than OpenAI’s ChatGPT.

With immense scale and resources, Alphabet will be able to deploy AI tools across its applications that are used by billions of people around the globe.

On the enterprise side, Google Cloud is one of the leading AI cloud companies due to its advanced computing infrastructure. Google Cloud revenue grew 28% year over year last quarter to $12.3 billion, making it the fastest-growing segment for Alphabet. The division has invested heavily in its own computer chips called Tensor Processing Units (TPUs), which make it more efficient to build AI software applications on Google Cloud.

There is expected to be hundreds of billions of dollars spent on AI cloud workloads in the coming years, which will help Google Cloud keep growing as a bigger piece of the Alphabet pie.

Overall, Alphabet generated a whopping $360 billion in revenue over the past 12 months and $117.5 billion in operating income. Investors were previously worried about saturation of usage at Google Search, which has now proliferated around the globe. However, with the rise of AI applications, Alphabet looks to have increased its addressable market in organizing the world’s information, the company’s famous slogan. This will help revenue and earnings keep growing over the next decade.

Today, you can buy Alphabet stock at a measly P/E ratio of 20. This makes the stock undervalued if you plan on holding for many years into the future.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends ASML, Alphabet, and Nvidia. The Motley Fool has a disclosure policy.

Source link

AI Insights

Russia allegedly field-testing deadly next-gen AI drone powered by Nvidia Jetson Orin — Ukrainian military official says Shahed MS001 is a ‘digital predator’ that identifies targets on its own

Published

2 hours ago

July 7, 2025

The Editors

Ukrainian Major General Vladyslav (Владислав Клочков) Klochkov says Russia is field-testing a deadly new drone that can use AI and thermal vision to think on its own, identifying targets without coordinates and bypassing most air defense systems. According to the senior military figure, inside you will find the Nvidia Jetson Orin, which has enabled the MS001 to become “an autonomous combat platform that sees, analyzes, decides, and strikes without external commands.”

Digital predator dynamically weighs targets

With the Jetson Orin as its brain, the upgraded MS001 drone doesn’t just follow prescribed coordinates, like some hyper-accurate doodle bug. It actually thinks. “It identifies targets, selects the highest-value one, adjusts its trajectory, and adapts to changes — even in the face of GPS jamming or target maneuvers,” says Klochkov. “This is not a loitering munition. It is a digital predator.”

Even worse, the MS001 is allegedly operating in coordinated drone groups, persisting in its maximum destructive purpose despite the best efforts of Ukraine’s electronic warfare and other anti-drone systems.

Frustrated with warfare tech development speeds

Klochkov signs off his post by informing his LinkedIn followers that “We are not only fighting Russia. We are fighting inertia.” What he appears to wish for is an acceleration of Ukraine’s own assault drone capabilities. The Major General seems particularly disappointed in the Ukrainian system of procurement rounds, slowing field-testing and deployment of improved responses to new Shahed drone generations.

Shahed drones are originally an Iranian design but have gained great notoriety due to their sustained use by the Russian army to attack Ukrainian targets. The MS001 is substantially upgraded in the ‘smarts’ department thanks to Western/allies technologies.

Klochkov says the MS001 is powered by the following key technologies:

Nvidia Jetson Orin — machine learning, video processing, object recognition
Thermal imager — operates at night and in low visibility
Nasir GPS with CRPA antenna — spoof-resistant navigation
FPGA chips — onboard adaptive logic
Radio modem — for telemetry and swarm communication

Cute AI dev board with deadly potential (Image credit: Nvidia)

Western tech sanctions are supposed to neuter this kind of military threat from nations like Russia and Iran. This news indicates that such trade barriers are leaky, at best, and probably not taken seriously enough.

Not the first Russia-deployed drone discovered using Nvidia AI

This isn’t the first Russian drone system that is thought to have adopted Nvidia’s Jetson Orin as a key component.

A month ago, Ukraine’s Defense Express site said that a new “smart suicide attack unmanned aerial vehicle with artificial intelligence,” dubbed the V2U, was powered by Nvidia’s little AI computer.

While the Shahed MS001s use an Iranian design, the V2U looks like it is more reliant on Chinese tech, including the Chinese-made Leetop A603 carrier board.

Follow Tom’s Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.

Source link

AI Insights

Artificial Intelligence Predicts the Packers’ 2025 Season!!!

Published

2 hours ago

July 7, 2025

The Editors

On today’s show, Andy simulates the Packers 2025 season utilizing artificial intelligence. Find out the results on today’s all-new Pack-A-Day Podcast! #Packers #GreenBayPackers #ai To become a member of the Pack-A-Day Podcast, click here: https://www.youtube.com/channel/UCSGx5Pq0zA_7O726M3JEptA/join Don’t forget to subscribe!!! Twitter/BlueSky: @andyhermannfl If you’d like to support my channel, please donate to: PayPal: https://paypal.me/andyhermannfl Venmo: @Andrew_Herman Email: [email protected] Discord: https://t.co/iVVltoB2Hg

Source link