2 Artificial Intelligence (AI) Stocks With High Conviction
Spending on artificial intelligence could reach an astounding $4.8 trillion by 2033.
Nvidia's GPUs are critical for the training and deployment of complex AI models.
AI developers want the best cloud infrastructure, and Amazon leads in this area.
10 stocks we like better than Nvidia ›
Fortunes have been made by investing in artificial intelligence (AI) stocks. But there's still a lot of room left to go. The United Nations, for instance, believes that the AI market will grow from $189 billion worldwide in 2023 to nearly $5 trillion by 2033. Want to make sure your portfolio benefits? The two AI stocks below are for you.
Nvidia remains the smartest AI investment
When it comes to AI stocks, Nvidia (NASDAQ: NVDA) is king. Even if you're already familiar with this stock, there's a good chance that shares are much cheaper than you realize.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
If you've been following the AI market, you'll know that Nvidia is the most valuable GPU maker in the world. GPUs sit at the heart of the AI revolution. They're critical for training and deploying complex AI models. They also make it possible for end users to access these models en masse from anywhere in the world.
Right now, Nvidia's GPUs dominate the market. The firm has an estimated 90% market share for AI GPUs. Its performance and ecosystem advantages have granted the company the highest gross margins in the industry. Wall Street analysts are unsurprisingly excited.
Wedbush Securities analyst Dan Ives believes Nvidia's market cap will surge to $5 trillion within months. The biggest near-term catalyst: the decision by the U.S. government to allow Nvidia's new GPUs to be exported to China, a country that previously accounted for around 13% of the company's sales.
While shares are expensive based on trailing earnings, the stock trades at just 39 times forward earnings. Considering the AI boom is expected to persist for a decade or more, expect Nvidia to maintain double-digit annual growth rates for years to come. This should quickly eat into the upfront valuation premium, making shares a relative bargain for patient investors.
Amazon is an artificial intelligence powerhouse
Apart from Nvidia, Amazon (NASDAQ: AMZN) stock looks like one of the best ways to invest in the AI revolution over the long term. That's because its most profitable business segment, Amazon Web Services, sits at the center of everything AI.
We've already discussed how Nvidia's GPUs sit between AI developers and the end users themselves. But there's one other industry that also sits at the center of the action: cloud infrastructure providers. Most estimates believe Amazon's AWS division is the largest cloud infrastructure provider in the world. Data compiled by Statista gives AWS a 30% global market share, nearly as much as the next two competitors combined.
While the data center industry is a bit more commoditized than the GPU market, there's clear differentiation by the players that can afford to invest at scale. Developers -- AI developers in particular -- want the best infrastructure possible. That includes the best hardware and the most locations from a geographic perspective. This makes it quicker, cheaper, and more convenient for customers.
As the largest cloud provider in the world, Amazon is second to none in its ability to invest and expand its network. This should continue to place AWS at the center of increased spending.
"Companies are spending and they're spending more, and they plan to spend even more," Baird analyst Colin Sebastian recently told GeekWire. "We did a survey last month of 100 corporations, and 87% of them said they will increase spending on Gen AI over the next year -- and a grand total of zero out of 100 said they would spend less."
The AI spending boom is real. Demand should grow by 20% to 30% annually for years to come. With Amazon trading at 37 times earnings, most of its growth in this area is masked by its relatively slower growing e-commerce division. But as AWS becomes a bigger driver of Amazon's overall business, we could see growth rates accelerate, making shares a relative bargain in hindsight.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!*
Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 21, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBC
2 minutes ago
- CBC
Amazon's bid to overturn B.C. labour ruling granting unionization to its workers rejected
British Columbia's Labour Relations Board has rejected a bid by e-commerce giant Amazon to overturn an earlier decision that awarded union certification to workers at a facility in Delta, B.C. A Labour Relations Board panel ruled in a decision dated Tuesday that it agrees with the board's original decision in July that ordered remedial certification due to Amazon ramping up hiring"in order to thwart the union's certification application." The panel says evidence presented by Unifor showed "a deliberate decision by the employer" to increase its employee roster to dilute union support during its membership drive. The decision also says Amazon's move to intentionally pad its employee list and then use it to argue that the union does not meet the threshold for certification "is manipulating the employee list in order to avoid certification." WATCH | Union at Delta, B.C., warehouse granted union certification: Delta, B.C., Amazon workers certified to unionize 23 days ago Amazon workers in Delta, B.C., were certified to unionize on Friday, in a ruling from the B.C. Labour Relations Board. Gavin McGarrigle, the western regional director of Unifor, says he's optimistic the legislation will force Amazon to the bargaining table. In a statement, Amazon spokesperson Eileen Hards says the company plans to appeal the decision again and "will determine the right next steps" once there's a final decision on the appeal. Amazon had applied to the Labour Relations Board to reconsider its original July decision, and the latest ruling says the company argued that the last board panel made an error in applying labour laws to the case — as well as in awarding remedial certification to the union. The company had argued that evidence showed "there was an operational need for additional staff," while what was described as a "pervasive anti-union campaign" was protected by employer free-speech rights. The panel disagreed. "In our view, the original decision adopts the correct approach, which is to consider the employer's conduct as a whole," the decision says. Citing precedent, the panel writes, "We note that the kinds of activities in which the employer engaged in the present case are the classical hallmarks of an interference in the formation or selection of a trade union." The panel says that Amazon's move to "knowingly and improperly" pad the employee list is "sufficiently egregious" to justify its original decision to order the union's certification. "From our perspective, the intentional padding of an employee list for the purpose of undermining an organizing drive is an even more fundamental attack on its employees' associational rights," the latest decision says. In a statement, Unifor National president Lana Payne says the decision is a "message" to B.C. employers not to interfere in unionization "or to suffer the consequences." Hards, the Amazon spokesperson, says the decision is "wrong on the facts and the law" and deprives workers of their "right to make an informed decision."
Globe and Mail
31 minutes ago
- Globe and Mail
If You Bought 100 Shares of IonQ at Its IPO, Here's How Much Money You'd Have Now
Key Points IonQ began trading on public markets in 2021 after merging with a special purpose acquisition company. Shares of IonQ have soared over the past four years. The stock has plenty of potential to continue rising as the quantum computing industry matures. 10 stocks we like better than IonQ › With the potential to revolutionize computing as we know it, quantum computing has soared in popularity among investors seeking tech stocks with ample growth opportunity. Of the limited number of quantum computing stocks, IonQ (NYSE: IONQ), a leader in the field, is one of the most recognizable names. But a stock growing in popularity doesn't always ensure that shares will also rise. Let's see how IonQ investors who bought shares four years ago after the company's debut on public markets have fared. The first quantum computing company on the scene Proclaiming itself the "first publicly traded, pure-play quantum computing company," IonQ began trading on Oct. 1, 2021 at $10.60 after the company completed a merger with a special purpose acquisition company (SPAC). Over the following years, the company has announced several notable achievements. From opening the first quantum computing manufacturing facility in the United States, to applying quantum computing to artificial intelligence (AI) and machine learning that advances hybrid quantum-classical computing to improve both large language models and generative AI, IonQ has made tremendous strides that have excited investors' interest. As a result of the company's progress, shares of IonQ have soared. People who invested $1,060 to buy 100 shares at the stock's open on the first day of trading at it's opening price had seen their positions grow to $4,122 as of the end of trading on Aug. 6, 2025. Is it a quantum leap to think that IonQ stock can rise further? As a leader in the burgeoning quantum computing field, IonQ stock is one of the most common considerations for investors seeking exposure to the cutting-edge technology. While quantum computing might seem the stuff of science fiction, the company is demonstrating that there's nothing fictitious about the technology. As it pursues integrating its technology with hyperscalers like Microsoft Azure and Amazon Web Services, the company has robust growth potential over the coming years, and there's the definite potential for IonQ stock to continuing surging higher. Should you invest $1,000 in IonQ right now? Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $619,036!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,092,648!* Now, it's worth noting Stock Advisor's total average return is 1,026% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
Globe and Mail
an hour ago
- Globe and Mail
Yotpo Exits Email & SMS, E-commerce Brands Face Vendor Lock-In Risk TxtCart Emerges as the SMS-Only Alternative to Attentive
In a strategic shift, Israeli-founded unicorn Yotpo announced it will discontinue its Email and SMS marketing services—laying off roughly 200 employees (34% of its workforce)—and sell that business to Attentive in a deal valued in the tens of millions. The move highlights the dangers of stacking multiple channels with a single vendor: when that provider pivots, merchants can be left scrambling for replacements, migrating complex integrations and incurring steep costs. 'Tomorrow's companies will be smaller, more focused, and much more AI-based,' said Yotpo CEO Tomer Tagrin. The Risk of Stack Consolidation Brands that bundle reviews, loyalty, email, SMS, and analytics risk sudden service gaps when their provider refocuses. Migrations become costly, innovation stalls, and ROI suffers—especially for Shopify merchants who need swift, reliable SMS solutions. TxtCart: SMS Built for Shopify Brands of the Future TxtCart sidesteps these pitfalls by concentrating solely on two-way, conversational SMS marketing. Key benefits include: ● Two-way AI Conversations: Handle customer queries at $0.50 per resolution (vs $16 with human agents), driving 32× cost savings. ● Performance-Based Pricing: 10× ROI guarantee on qualifying plans, no contracts or minimums. ● Deep Shopify Integration: One-click automations, abandoned cart recovery, granular segmentation by purchase behavior, and real-time revenue analytics. 'Honestly like a money printer for us,' said Gamenetics. 'Within the first 45 days we added an additional $8,500 in revenue with only a small SMS list.' Brands that Migrated from Attentive (Yotpo's SMS buyer) to TxtCart ● Joyride (pet harnesses) recovered over $1.8 million in SMS revenue in 2024, achieving 20× ROI and doubling checkout recovery after switching from Attentive. ● Shogun Sports (athletic gear) saw $13,848 in recovered revenue and 15.66× ROI in 28 days following their move from Attentive. As further proof for the TxtCart platform's SMS capabilities, Dreamwrap Sleep saw a 400% ROI in just two weeks, and OrganiGrowHairCo calls TxtCart 'top tier support,' praising its seamless setup and instant results. TxtCart Founder's Perspective On Twitter, TxtCart founder Kyle Bigley invited both merchants and displaced employees to join: 'Hearing that Yotpo is shutting down email and sms…Merchants affected, my DMs are open as we can get you migrated in minutes… Employees affected, my DMs are open as we are hiring for a variety of roles at TxtCart.' He also recalled the SMSBump era: '25k merchants were left hanging after SMSBump was acquired by Yotpo…Too bloated. Too expensive. Too complicated. Dropshippers don't want to deal with sales calls or contracts. They want quick money. That's exactly who we built TxtCart for… We only do SMS, and we go deep as hell.' About TxtCart TxtCart is a Shopify-native SMS marketing platform built for e-commerce brands that demand rapid onboarding, AI-driven automation, and performance-based ROI. Focused exclusively on SMS, TxtCart helps merchants recover carts, engage customers in real time, and maximize revenue without the bloat of multi-channel stacks.
