There will prove to be many winners as artificial intelligence (AI) infrastructure continues to grow and AI end-uses expand. Nvidia (NASDAQ: NVDA) has been the Wall Street darling surrounding everything AI for the past two years.

CoreWeave (NASDAQ: CRWV) has been getting the love most recently, though. Shares of the AI hyperscaler providing cloud services have soared about 185% in just the past month as of this writing. Nvidia stock has increased 24% in that time. CoreWeave just went public in late March, and the shares have jumped about 270% since that initial public offering (IPO). Investors may wonder if Nvidia's shine is fading, and it's time to buy CoreWeave instead. I'd argue that is flawed thinking, however.

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The growth isn't over for Nvidia

Investors may be taking a breather after the early exponential gains in Nvidia stock. Growth in the business itself has also slowed, though that was inevitable. Sales of its advanced chips in the data center segment had been growing like a weed. Revenue in that segment has been increasing in each consecutive quarter for the last two years. In the most recent fiscal quarter, that growth rate slowed to 10%, though, as seen below.

Despite that trend, it's clear AI demand hasn't yet peaked. Remember, these are still sequential quarterly increases in data center sales. For perspective, that fiscal first-quarter revenue was a 73% jump compared to the prior year period. Management also guided investors to expect further revenue growth in the current quarter. So, while an unsustainable growth rate slows, the company is still solidly in growth mode.

Nvidia is more ubiquitous than you might think

That's because it's not just Nvidia's advanced GPU and CPU chips driving sales and expanding AI infrastructure. Its AI ecosystem includes interconnect technologies, the CUDA (compute unified device architecture) software platform, and artificial intelligence processors that are part of many different types of architectures.

CEO Jensen Huang recently touted Nintendo's new Switch 2 gaming console, for example. The unit includes Nvidia's AI processors that Huang claims "sharpen, animate, and enhance gameplay in real time."

Nvidia has a broad array of customers. As AI factories and data centers are built, it will continue to be a major supplier and one that investors should benefit from owning. Nvidia also invests in the AI sector. It makes sense to look at where the AI leader itself sees future gains.

Nvidia thinks CoreWeave is a good investment

One of the AI companies in which Nvidia holds a stake is CoreWeave. Nvidia should know CoreWeave well, too, as an important customer. CoreWeave leases data center space to companies needing the scalable, on-demand compute power it has control of from the 250,000 Nvidia chips it has purchased.

It's a desirable option for enterprises that require significant computational power to process large amounts of data efficiently. There appears to be plenty of demand. But there is plenty of risk for investors, too. It just announced a new lease agreement to further increase capacity.

Applied Digital, a builder and operator of purpose-built data centers, has agreed to deliver CoreWeave 250 megawatts (MW) of power load on a 15-year term lease at its recently built North Dakota data center campus. CoreWeave has the option to expand the load by an additional 150 MW in the future.

Demand is quickly driving growth for CoreWeave. That's led investors to jump in and drive the stock higher in recent months. Valuation is just one major risk with CoreWeave. Customer concentration is another. Last year, Microsoft accounted for nearly two-thirds of revenue. CoreWeave also disclosed that 77% of 2024 revenue came from just its top two customers.

CoreWeave is also spending massive amounts of capital to grow AI cloud capacity. It had about $5.4 billion of liquidity available as of March 31 and raised another $2 billion from a late May debt offering. That's approximately its level of capital expenditure in just the first quarter alone, though.

CoreWeave has the risk, Nvidia has the profits

That spending may pay off. But there are risks there as well. Customers could develop their own AI infrastructure or could redesign systems that don't require its services. CoreWeave stock also trades at a high valuation after the stock has soared. It recently had a price-to-sales (P/S) ratio of about 30.

That could be cut in half this year with its strong sales growth, but it isn't earning any money yet. At the same time, Nvidia sports a price-to-earnings (P/E) ratio of about 30 based on this year's expected profits.

Remember, too, that as CoreWeave grows, so do Nvidia's profits. Applied Digital CEO Wes Cummins said that its leased North Dakota data center campus will be full of Nvidia Blackwell class servers. I think the risk profile, financial picture, and massive potential for Nvidia make it the better AI stock to buy now.

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Howard Smith has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends Nintendo and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Shares of artificial intelligence (AI) cloud service provider Nebius Group (NASDAQ: NBIS) are surging today. The stock jumped after one independent equity research firm began coverage on the stock with a very bullish outlook.

Nebius stock was trading higher by 19.5% as of 11:05 a.m. ET.

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A growth story that's just beginning

London-based Arete Research analyst Andrew Beale began coverage of the stock with a "buy" rating and a price target that seems to have taken investors by surprise. Reports say Beale set $84 as his price target, which represents a 113% increase over Wednesday's closing price.

The analyst sees that significant upside after the Netherlands-based Nebius recently reported first-quarter revenue growth of 385%. That was off a low base versus last year, but the company sees continued expansion at an accelerated rate.

Beale's optimism stems from the nearly 700% increase in Nebius' annualized revenue run rate. Management expects to at least triple that annualized level of revenue by the fourth quarter of this year. Its AI cloud capabilities are in high demand, and Nebius reports a strong $1.44 billion cash position as of March 31.

That cash will be needed for the continued investment in cloud infrastructure to continue to scale the business. Nebius also announced a $1 billion capital raise on June 2 from the sale of convertible notes.

Nebius also has a partnership with AI leader Nvidia, offering the new Blackwell Ultra AI factory platform to businesses looking "to build the next generation of agentic, reasoning, and physical AI."

Investors still need to consider the risks. In addition to its capital spending needs, Nebius seeks to achieve a goal of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) later this year. That's one key metric investors should continue to monitor. That would instill more confidence in the stock and the company's ability to continue to achieve its high growth trajectory.

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Many investors are watching large tech companies invest massive capital into artificial intelligence (AI) infrastructure. The big question is when, or even if, there will be an adequate return on those investments.

There are even concerns that massive capital allocation plans already announced may be cut or pushed out. But there are more and more signs that spending is continuing and even accelerating. If that indeed remains true, two of the biggest beneficiaries of that spending are no-brainer stocks to buy right now.

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"A ton" of AI data center demand

Currently, one of the main recipients of that capital is Nvidia (NASDAQ: NVDA). Its high-end chips are filling server stacks in many data centers being built globally. As a result, the AI boom has been of game-changing benefit to Nvidia and its investors. The stock has been under pressure, though, as questions surface about demand from a slowdown in AI infrastructure spending, and regulatory headwinds in the form of export restrictions.

The concerns related to capital spending may be overblown. Jonathan Gray, chief operating officer of asset manager Blackstone, recently told CNBC: "I think this trend is powerful. I think it will continue...overall, we still see a ton of demand." That's great news for Nvidia investors and supports what large Nvidia customers like Meta Platforms, Microsoft, and Amazon have been saying about maintaining, or even growing, their capital spending plans.

Export curbs could be more problematic for Nvidia. Management already said Nvidia plans to take $5.5 billion in charges after the Trump administration declared limits to exports and required licensing for Nvidia's H20 AI chip sales to China. That chip was a modified product created specifically to comply with previous regulations for China shipments.

The China picture might be improving

China is an important market for Nvidia. Concerns surrounding that business are a big reason why Nvidia shares have declined this year. Sales there represented 13% of total revenue last year. That was down from 17% in the prior fiscal year, though, showing that Nvidia isn't overly reliant on Chinese customers.

Recent reports say that President Donald Trump may even be ready to relax AI chip export curbs, too. Just as Biden-era export restrictions are getting ready to go into effect, Trump reportedly will overturn those rules. Potential rules and regulations going forward remain unclear, but the effect on Nvidia's business may already be priced into the stock.

The takeaway is that investing in the AI leader should still make sense, especially as the stock has pulled back this year. With Nvidia's business still flourishing, investors could also look to its biggest supplier for a winning investment right now.

Another global AI leader

Taiwan Semiconductor (TSMC) (NYSE: TSM) also considers Nvidia one of its most important customers. TSMC supplies semiconductor products, including microprocessors, graphics processing units (GPUs), microcontrollers, and other specialty and advanced technology packages. Nvidia is one of several big tech companies reliant on TSMC, but the Taiwan-based company has a diverse customer base. It supplied products to more than 500 customers last year.

Demand for its services is surging. Revenue soared 42% in the first quarter, and profits surged even more. Net income and diluted EPS (earnings per share) soared 60% year over year. That rapid growth is expected to continue. Management expects year-over-year revenue to jump another nearly 40% in the current quarter.

Yet, as with Nvidia, investors have pushed TSMC shares down by more than 10% year to date. That's led to a very desirable valuation. The stock now trades at a forward price-to-earnings ratio below 20.

Nvidia and TSMC stocks have both been beaten down due to concerns about slowing growth. Yet based on customer demand and tech companies' recent comments, the rise in AI development has not become a bubble. Even if capital spending on data center buildouts does slow, that doesn't present the full picture either. AI also includes software that is likely going to run in almost every device for both consumers and many enterprises.

Taking that broader view should make most investors comfortable owning both Nvidia and TSMC at recent valuations.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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. Howard Smith has positions in Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Amazon, Blackstone, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

There may never have been a smoother transition from an iconic CEO to a successor. Warren Buffett and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) let markets know several years ago that Greg Abel would be Buffett's eventual replacement. Abel is currently vice chairman of Berkshire's non-insurance businesses.

Buffett officially said this weekend that he would step down and hand the reins to Abel at the end of the year. The announcement came as a surprise, even though investors had known to expect it. Berkshire shares tanked Monday on the news, dropping nearly 7% before paring those losses.

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Investors might be wondering whether they should be buying or selling Berkshire Hathaway stock now.

Can Berkshire survive without Buffett?

Buffett was the key force in building Berkshire Hathaway into a trillion-dollar company. So it's natural for investors to wonder about holding the stock when Warren Buffett is no longer the decision-maker. Today's stock reaction is overdone, though. Buffett will be staying on as chairman of the board and isn't even passing the CEO torch to Greg Abel until the end of the year.

Some investors may have wanted to have their money handled by Buffett himself. His investing philosophy is unique, and his results have been spectacular. That includes this year as Berkshire stock has greatly outpaced the S&P 500 index thus far.

On Saturday, at the 2025 shareholders meeting, Buffett said that not only will Berkshire survive, he thinks it will thrive under Abel's leadership. Buffett said Abel would be even better than he at managing the company's vast array of operating businesses.

Buffett made his name by being opportunistic. He poured billions into quality names during the Great Recession of 2008-2009. Investors should do the same with Berkshire stock, though even today's drop doesn't make shares a bargain. They trade at a relatively high valuation compared to recent years. Starting a position now could make sense, but wait for a bigger drop to dive in.

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Howard Smith has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

VeriSign (NASDAQ: VRSN) shares took off Friday morning after the company released first-quarter earnings and declared a dividend for the first time. Its solid results also allowed the company to raise revenue guidance for the full year.

Investors jumped into what has been one of the big stock market winners so far this year. Shares jumped 9.3% higher as of 11:35 a.m. ET, giving the stock a gain of 33% year to date.

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VeriSign is a big Warren Buffett holding

The initiation of a quarterly cash dividend surely made shareholders happy, too. That group of investors includes Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).

VeriSign isn't what most investors would picture as a Buffett holding. The company manages internet domain names and provides critical internet infrastructure for managing and maintaining security. Buffett typically steers clear of technology stocks, but Berkshire has owned VeriSign for more than a decade, and it added to its VeriSign holding in the fourth quarter. That holding was valued at about $2.75 billion at the end of Q4, putting VeriSign just out of Berkshire's 10 largest holdings.

Shareholder-friendly moves

Buffett likely continues to be happy with VeriSign's business. The company saw both revenue and operating income grow almost 5% year over year. It raised 2025's full-year guidance for both of those metrics as well.

VeriSign also declared a cash dividend of $0.77 per share, giving the stock a forward dividend yield of about 1.1%. It also repurchased 1 million shares at an average price of $230 per share. Those are signs of a company with strong free cash flow. The share repurchases should continue, as VeriSign still had almost $800 million authorized for that purpose as of the end of the quarter.

This is a company that has been delivering consistent financial results with strong cash flow. And note that it should feel minimal impacts from the current tariff uncertainty. It's not immune to currency fluctuations and economic slowdowns, but it looks to be a good stock to own right now.

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Howard Smith has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and VeriSign. The Motley Fool has a disclosure policy.

Not many people expected an earnings beat from Tesla's (NASDAQ: TSLA) first-quarter report last night. The results were even worse than anticipated in many respects. Yet Tesla stock soared Wednesday morning. As of noon, the stock was trading higher by 6.7%.

The source of investor optimism was in the company's earnings call to discuss the results. Some think the worst may now be over for the stock after shares have plunged almost 50% off the highs reached late last year.

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Elon Musk to spend more time on Tesla

The stock had been dropping as investor concerns grew over the amount of time CEO Elon Musk was spending in his role as head of the cost-cutting, efficiency-boosting Donald Trump initiative called DOGE (Department of Government Efficiency), and the negative reaction to his government work. In the conference call, though, Musk said a large part of his work "is mostly done." Musk also said that beginning in May, "my time allocation at DOGE will drop significantly."

That isn't all that has investors feeling better about buying Tesla shares. In its report to shareholders, the company said, "plans for new vehicles, including more affordable models, remain on track for [the] start of production in the first half of 2025." That means some version of what could be called a "Model 2" will be revealed in about two months.

Tesla still faces speed bumps

That's big news for Tesla investors as falling sales of its current electric vehicle (EV) lineup caused it to miss earnings and revenue estimates in the first quarter. Deliveries dropped 13% year over year, and revenue dropped 9%.

A cheaper model might help spur sales. But Musk's political activity has also alienated some potential Tesla buyers. Longer-term goals, which include a full self-driving cybercab and a fleet of humanoid Optimus robots, are what investors really want to see materialize.

Until those products become a reality, investors should expect a volatile road for Tesla stock. For today, though, buyers are far outnumbering sellers.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $256,447!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $37,869!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $561,046!*

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Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

It's been a topsy-turvy week in the stock market. Mostly because of tariff news and the potential ramifications to the U.S. and world economies. One electric vehicle (EV) stock jumped today for another reason. Lucid Group (NASDAQ: LCID) raised some fresh capital this week, and today announced new expansion plans.

Lucid stock surged as much as 5.6% on Friday before losing steam. As of 1:10 p.m. ET Friday, shares were holding on to a 0.4% gain after the company announced plans to buy a manufacturing plant and other assets from bankrupt hydrogen-electric truck maker Nikola.

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Lucid looks to grow capacity

Lucid has been known for its luxury Air sedan EV. It now is also offering a luxury SUV model that it hopes will expand its customer base. Early reviews are positive for the Gravity SUV that is now in Lucid showrooms. The new EV has 450 miles of range, and is the fastest charging EV outside of China, according to industry publication InsideEVs. The Gravity is also equipped to utilize Tesla's vast Supercharger network.

That new offering is potentially the catalyst Lucid needs to grow sales and move closer to profitability. The company has other plans to expand its market reach, too. A future, lower-priced EV would go a long way to help realize that. Lucid took a step toward increasing volume by announcing plans today to acquire Nikola's Arizona manufacturing plant pending approval by a bankruptcy judge. Lucid's existing plant is also in Arizona, located between Phoenix and Tucson.

Lucid closed on a $1.1 billion convertible note offering this week. While most of those funds will be used to pay off debt due next year, that will free up existing capital to fund the new asset purchase.

Along with the manufacturing facility, Lucid plans to offer employment to over 300 former Nikola employees, and the acquisition includes Nikola's former headquarters and product development center.

Investors initially cheered Lucid's new growth plans today. But it still has an uphill battle, especially in uncertain economic times. That helps explain today's stock movement.

Should you invest $1,000 in Lucid Group right now?

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $659,306!*

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Howard Smith has positions in Lucid Group, Nikola, and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

It's been an incredibly turbulent week for stocks in the electric vehicle (EV) sector and for markets in general. As of early Friday morning, the Nasdaq Composite index was 5.4% higher for the week mainly thanks to Wednesday's historic rally.

Shares of EV maker Lucid Group (NASDAQ: LCID) were doing even better, surging by 10.5%, according to data provided by S&P Global Market Intelligence. Those gains have come partly because of struggles at EV leader Tesla. Investors should be aware of something that could cause issues for Lucid in the near future, though.

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Lucid moves into SUVs

Lucid recently began selling its Gravity SUV and reports say that orders have picked up recently. Interest may have increased thanks to consumers' displeasure with Tesla CEO Elon Musk and his political activity. "We see a clear uptick of interest in Lucid from Tesla buyers, because they're looking for another option," Lucid's interim CEO, Marc Winterhoff, recently told Yahoo! Finance.

The company is planning to expand production, too. It just announced plans to acquire additional manufacturing facilities from bankrupt electric heavy truck maker Nikola, subject to bankruptcy court approval.

Competition moving into one market

Lucid also has been actively working to be the EV leader in the Saudi Arabian market. The Saudi government is the largest Lucid shareholder via its sovereign wealth fund, the Public Investment Fund (PIF). Lucid ships vehicles to that country for final assembly and sale. In the first quarter, that amounted to over 600 vehicles.

Now, rival Tesla is moving into the Saudi market, too. Tesla held a launch event in Saudi Arabia with the opening of its first showroom and service center in Riyadh this week. That could mean Lucid's growth plans there will take a hit.

The future is still uncertain for Lucid. It continues to lose money, and is counting on its Gravity SUV to spur higher sales volumes. Investors should keep that in mind, as it likely will mean volatility in the stock will continue, and possibly erase this week's big gain.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, 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 Lucid Group 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 $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $659,306!*

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*Stock Advisor returns as of April 10, 2025

Howard Smith has positions in Lucid Group, Nikola, and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.