Key Points

• Alphabet's AI strengths are being overlooked by the market.

• Amazon is using AI behind the scenes to become more efficient and drive growth.

• Meta Platforms and Pinterest are both using AI to drive advertising revenue growth.

• 10 stocks we like better than Alphabet ›

The artificial intelligence (AI) boom continues to drive growth and transform industries, but it's not just infrastructure players that are benefiting. Some of the best long-term opportunities are with companies deploying AI behind the scenes.

Let's look at five brilliant AI-related growth stocks to buy and hold for the long haul.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

1. Alphabet

Investors continue to underestimate Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), as they worry about AI disrupting its search business. But that view ignores what Google, its major component, actually does. This is a company built around content discovery -- not just traditional search -- and it's integrating AI into tools billions of people already use. And no other company is better at monetizing that content discovery through advertising than Alphabet. Its search data and digital ad network just cannot be matched.

The Chrome browser and Android operating system give it unmatched distribution; Chrome is the default search engine on the majority of devices, giving it a huge built-in advantage. And a recent Oppenheimer survey revealed that users found Google Search's new AI Mode more helpful than not only traditional search but also ChatGPT.

YouTube remains the world's largest ad-supported streaming platform. Google Cloud, Alphabet's cloud computing unit, is growing fast, helping companies build, train, and run AI models.

Google is also becoming a chip leader. Its Tensor Processing Units (TPUs) are helping to power AI development, while its Willow quantum computing chip may be a future growth driver. And Alphabet subsidiary Waymo is expanding its robotaxi footprint.

Taken altogether, Alphabet is one of the most innovative companies in the world, and one you want to own.

2. Amazon

Amazon (NASDAQ: AMZN) is using AI to become even more dominant. While it's best known for e-commerce and cloud computing, the company's behind-the-scenes work is where the real long-term value is being built.

On the logistics and warehouse side, Amazon is using AI to determine where to store inventory, create more efficient delivery routes, and even navigate hard-to-find drop-off points. Its robotics division just passed 1 million deployed units, and some of its AI-powered robots can detect damaged products or even repair themselves. Amazon also created a new AI model called DeepFleet that coordinates its entire robot fleet to help boost throughput.

The company's largest and fastest-growing business is Amazon Web Services (AWS). It helps customers build AI models and apps with tools like Bedrock and SageMaker, and then has them run those programs on its infrastructure. It's also developed custom AI chips that give it a cost advantage, and continues to invest in AI infrastructure to meet rising demand.

Overall, Amazon is well positioned for an increasingly AI-focused world.

3. Meta Platforms

Meta Platforms (NASDAQ: META) owns one of the world's most valuable digital advertising businesses, and AI is making it better. Its Llama models are driving more engagement across Facebook and Instagram, boosting user time spent on the apps. That gives Meta more ad inventory to sell. It's also using AI to help advertisers create better campaigns and target potential customers, which is increasing demand and leading to higher ad prices.

But Meta's growth story is just getting started. The company is only now beginning to serve ads on WhatsApp, which has over 3 billion users. It's also rolling out ads on Threads, its new social platform, which had 350 million users at the end of the first quarter. With two massive platforms still early in their monetization cycles and AI continuing to drive performance, Meta looks like a long-term winner in the AI-powered digital economy.

But the company is not stopping there. CEO Mark Zuckerberg is spending aggressively to poach top AI talent. This is all part of an effort to -- as Zuckerberg says -- "deliver personal superintelligence to everyone in the world." If it's successful, Meta could become the top AI stock to own.

4. Pinterest

Meta isn't the only social media company using AI to drive growth. Pinterest (NYSE: PINS) has been using AI to evolve into a more shoppable and advertiser-friendly platform. The company has built a multimodal model that understands both images and text, allowing for better personalization and powering new features like visual search. Users can now click on items within images and shop for similar products directly, making Pinterest far more transactional and more attractive to both users and advertisers.

It's also working to simplify advertising on its platform. Performance+, its new AI-powered ad product, automates everything from campaign creation to targeting and bidding. That makes the platform easier to use for advertisers and helps them save time and drive better outcomes.

Pinterest has a global user base that has historically been undermonetized, especially compared to those of its peers. But with AI improving engagement, search, and ad performance, the company has a big opportunity to start to close that gap. If it can continue executing on its vision of merging content discovery with commerce, Pinterest could be a breakout growth story over the long term.

5. Toast

Toast (NYSE: TOST) has become one of the leading software platforms for the restaurant industry. What started as simply a point-of-sale system is now a full-stack software platform that helps restaurants streamline operations and drive more sales. Its newest tools -- like the AI-powered intelligence engine ToastIQ and the agent and assistant Sous Chef -- are designed to help restaurants make better decisions in real time.

Meanwhile, the company said a restaurant piloting its new menu upsell tool saw average order volume increase by 6%, while another restaurant group testing its new AI-powered advertising tool saw more than a "10x return on ad spend" with Google Ads.

Toast directly benefits from its customers' success, earning a cut of sales through payment processing. That creates a strong alignment between the business and its customers, so the company continues to innovate to help drive restaurant sales. Toast added 6,000 new locations in Q1 and now serves more than 140,000 restaurants. It's also expanding into chains like Applebee's and Topgolf, as well as adjacent verticals like hotel food service and retailers. It's slowly expanding overseas as well.

Toast's pace of innovation and expanding customer base give it a long runway of growth. This makes it a growth stock you want to own for the long term.

Should you invest $1,000 in Alphabet right now?

Before you buy stock in Alphabet, 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 Alphabet 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 $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,064,942!*

Now, it’s worth noting Stock Advisor’s total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of July 21, 2025

Geoffrey Seiler has positions in Alphabet, Pinterest, and Toast. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Pinterest, and Toast. The Motley Fool recommends Topgolf Callaway Brands. The Motley Fool has a disclosure policy.

This week, I take a look at the surprisingly strong state of Google, Meta gets a new chief AI researcher, and more. If you haven't already, be sure to check out this week's Decoder episode about deepfakes and where they are headed.

Also, do you use an AI coding tool like Cursor or GitHub Copilot? I'd love to know what works and what doesn't…

---

"I think we are doing very well through this moment"

After spending time with Google executives during the company's I/O conference in May, it was clear that they were feeling confident. Now, I'm beginning to see why.

ChatGPT is not making Google Search obsolete. If anything, AI is making Google st …

Read the full story at The Verge.

Activists around the world are calling attention to harassment they’ve faced on Meta’s platforms. More than 90 percent of land and environmental defenders surveyed by Global Witness, a nonprofit organization that also tracks the murders of environmental advocates, reported experiencing some kind of online abuse or harassment connected to their work. Facebook was the most-cited platform, followed by X, WhatsApp, and Instagram.

Global Witness and many of the activists it surveyed are calling on Meta and its peers to do more to address harassment and misinformation on their platforms. Left to fester, they fear that online attacks could fuel real-world risks to activists. Around 75 percent of people surveyed said they believed that online abuse they experienced corresponded to offline harm.

“Those stats really stayed with me. They were so much higher than we expected them to be,” Ava Lee, campaign strategy lead on digital threats at Global Witness, tells The Verge. That’s despite expecting a gloomy outcome based on prior anecdotal accounts. “It has kind of long been known that the experience of climate activists and environmental defenders online is pretty awful,” Lee says.

Left to fester, they fear that online attacks could fuel real-world risks

Global Witness surveyed more than 200 people between November 2024 and March of this year that it was able to reach through the same networks it taps when documenting the killings of land and environmental defenders. It found Meta-owned platforms to be “the most toxic.” Around 62 percent of participants said they encountered abuse on Facebook, 36 percent on WhatsApp, and 26 percent on Instagram. 

That probably reflects how popular Meta’s platforms are around the world. Facebook has more than 3 billion active monthly users, more than a third of the global population. But Meta also abandoned its third-party fact-checking program in January, which critics warned could lead to more hate speech and disinformation. Meta moved to a crowdsourced approach to content moderation similar to X, where 37 percent of survey participants reported experiencing abuse. 

In May, Meta reported a “small increase in the prevalence of bullying and harassment content” on Facebook as well as “a small increase in the prevalence of violent and graphic content” during the first quarter of 2025.

“That’s sort of the irony as well, of them moving towards this kind of free speech model, which actually we’re seeing that it’s silencing certain voices,” says Hannah Sharpe, a senior campaigner at Global Witness.

Fatrisia Ain leads a local collective of women in Sulawesi, Indonesia, where she says palm oil companies have seized farmers’ lands and contaminated a river local villagers used to be able to rely on for drinking water. Posts on Facebook have accused her of being a communist, a dangerous allegation in her country, she tells The Verge.

The practice of “red-tagging” — labeling any dissident voices as communists — has been used to target and criminalize activists in Southeast Asia. In one high-profile case, a prominent environmental activist in Indonesia was jailed under “anti-communism” laws after opposing a new gold mine.

Ain says she’s asked Facebook to take down several posts attacking her, without success. “They said it’s not dangerous, so they can’t take it down. It is dangerous. I hope that Meta would understand, in Indonesia, it’s dangerous,” Ain says. 

Other posts have accused Ain of trying to defraud farmers and of having an affair with a married man, which she sees as attempts to discredit her that could wind up exposing her to more threats in the real world — which has already been hostile to her activism. “Women who are being the defenders for my own community are more vulnerable than men … more people harass you with so many things,” she says. 

Nearly two-thirds of people who responded to the Global Witness survey said that they have feared for their safety, including Ain. She’s been physically targeted at protests against palm oil companies accused of failing to pay farmers, she tells The Verge. During a protest outside of a government office, men grabbed her butt and chest, she says. Now, when she leads protests, older women activists surround her to protect her as a security measure. 

In the Global Witness survey, nearly a quarter of respondents said they’d been attacked on the basis of their sex. “There’s evidence of the way that women and women of color in particular in politics experience just vast amounts more hate than any other group,” Lee says. “Again, we’re seeing that play out when it comes to defenders … and the threats of sexual violence, and the impact that that is having on the mental health of lots of these defenders and their ability to feel safe.” 

“We encourage people to use tools available on our platforms to help protect against bullying and harassment,” Meta spokesperson Tracy Clayton said in an email to The Verge, adding that the company is reviewing Facebook posts that targeted Ain. Meta also pointed to its “Hidden Words” feature that allows you to filter offensive direct messages and comments on your posts and its “Limits” feature that hides comments on your posts from users that don’t follow you. 

Other companies mentioned in the report, including Google, TikTok, and X, did not provide on-the-record responses to inquiries from The Verge. Nor did a palm oil company Ain says has been operating on local farmers’ land without paying them, as they’re supposed to do under a mandated profit-sharing scheme. 

Global Witness says there are concrete steps social media companies can take to address harassment on their platforms. That includes dedicating more resources to their content moderation systems, regularly reviewing these systems, and inviting public input on the process. Activists surveyed also reported that they think algorithms that boost polarizing content and the proliferation of bots on platforms make the problem worse. 

“There are a number of choices that platforms could make,” Lee says. “Resourcing is a choice, and they could be putting more money into really good content moderation and really good trust and safety [initiatives] to improve things.” 

Global Witness plans to put out its next report on the killings of land and environmental defenders in September. Its last such report found that at least 196 people were killed in 2023.

Shengjia Zhao, a former OpenAI researcher, will round out the leadership team at Meta's new AI lab.

In response to the European Union's incoming regulation of political advertising, Meta said on Friday that it would stop selling and showing political ads in the EU from October 2025.

• Meta hires Shengjia Zhao, ChatGPT co-creator, as chief scientist of its Superintelligence Labs.
• Mark Zuckerberg is on a multibillion-dollar AI spending spree, which includes poaching talent.
• Other tech CEO have mixed opinions about Zuckerberg's recruitment approach.

Meta just escalated the AI talent war with OpenAI.

Shengjia Zhao, a co-creator of ChatGPT and former lead scientist at OpenAI, is joining Meta as chief scientist of its Superintelligence Labs.

CEO Mark Zuckerberg announced Zhao's appointment on Friday in a social media post, and called him a "pioneer" in the field who has already driven several major AI breakthroughs.

Zhao previously helped build GPT-4 and led synthetic data efforts at OpenAI. According to the post, Zhao will now work directly with Zuckerberg and Meta's newly appointed chief AI officer, Alexandr Wang, the founder and CEO of Scale AI.

The new hire comes during Zuckerberg's multibillion-dollar AI spending spree, including a $15 billion investment in Scale AI and the creation of Meta Superintelligence Labs, a new division focused on foundational models and next-gen research.

In addition to Zhao, the company has lured away the three researchers who built OpenAI's Zurich office — Lucas Beyer, Alexander Kolesnikov, and Xiaohua Zhai — all of whom previously also worked at Google's DeepMind. The Superintelligence Labs team is now comprised of a lineup of names previously seen with OpenAI, Anthropic, and Google.

But the war for AI talent is far from over.

Databricks VP Naveen Rao likened the competition to "looking for LeBron James," estimating that fewer than 1,000 people worldwide can build frontier AI models.

Companies without the cash for massive pay packages are turning to hackathons and computing power as incentives. Perplexity CEO Aravind Srinivas said a Meta researcher he tried to poach told him to ask again when the company has "10,000 H100s."

AI tech workers have previously told Business Insider that Meta's Mark Zuckerberg has been emailing prospects directly and even hosting AI researchers at his home, while OpenAI CEO Sam Altman has made personal calls to potential hires.

Tech company executives have mixed feelings about Meta's poaching efforts.

"Meta right now are not at the frontier, maybe they'll they'll manage to get back on there," said Demis Hassabis, the CEO of Google DeepMind, on an episode of the "Lex Fridman Podcast," which aired on Friday.

"It's probably rational what they're doing from their perspective because they're behind and they need to do something," Hassabis added.

During a July 18 episode of the podcast "Uncapped with Jack Altman," OpenAI CEO Sam Altman criticised some of Meta's "giant offers" to his company's employees, and called the strategy "crazy."

"The degree to which they're focusing on money and not the work and not the mission," said Sam Altman. "I don't think that's going to set up a great culture."

Meta and OpenAI did not immediately respond to requests for comments.

• This post originally appeared in the BI Tech Memo newsletter.
• Sign up for the weekly BI Tech Memo newsletter here.

There's a fear in investing when a sector swells rapidly. Booming stock prices and aggressive spending feel great, until things inevitably cool off. Then comes the reckoning: Who overdid it in irreversible ways?

Big Tech is in an AI arms race, each company trying to outspend the others on data centers, GPUs, networking gear, and talent. Engineers can be let go. But the infrastructure? That's permanent. If the AGI dream fades, you're stuck with massive, costly assets.

So when Google announced it would hike capex by $10 billion to $85 billion in 2025 eyebrows went up. Most of it is for things you can't walk back: chips, data centers, and networking.

Google is "jumping aboard the AI crazy train," Bernstein Research analyst Mark Shmulik wrote, referencing a song by the late bat biter Ozzy Osbourne.

Meta's Mark Zuckerberg brags about Manhattan-sized data centers. And Elon Musk keeps hoarding GPUs. While Sam Altman is building mega-data centers with partners. JPMorgan dubbed this "vibe spending," warning OpenAI might burn $46 billion in four years.

It's no shock when Elon, Zuck, and Sam flex on capex. But Google? That's surprising. "Google doesn't do this," Shmulik said. The company has been viewed as measured in recent years, prioritizing investment intensity with care. Not anymore.

Now investors want to know: Will these swelling bets pay off?

There are promising signs. Since May, Google's monthly token processing (the currency of generative AI) has doubled from 480 trillion to nearly a quadrillion. Search grew 12% in Q2, beating forecasts. Cloud sales surged 32%. CEO Sundar Pichai said Google is ramping up capex to support all this growth.

But it's still a huge gamble. "Does the current return on invested capital seen in both Search and Cloud hold up at higher [capex] intensity levels," Shmulik asked, "or is the spend a very expensive piece of gum trying to plug an AI-sized hole?" He leans optimistic.

Still, Google shares rose just 1% after these results. Not exactly a resounding endorsement.

Sign up for BI's Tech Memo newsletter here. Reach out to me via email at [email protected].

The CEOs of every major artificial intelligence company received letters Wednesday urging them to fight Donald Trump's anti-woke AI order.

Trump's executive order requires any AI company hoping to contract with the federal government to jump through two hoops to win funding. First, they must prove their AI systems are "truth-seeking"—with outputs based on "historical accuracy, scientific inquiry, and objectivity" or else acknowledge when facts are uncertain. Second, they must train AI models to be "neutral," which is vaguely defined as not favoring DEI (diversity, equity, and inclusion), "dogmas," or otherwise being "intentionally encoded" to produce "partisan or ideological judgments" in outputs "unless those judgments are prompted by or otherwise readily accessible to the end user."

Announcing the order in a speech, Trump said that the US winning the AI race depended on removing allegedly liberal biases, proclaiming that "once and for all, we are getting rid of woke."

Read full article

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Instagram accounts that primarily feature images of children, but are run by adult users, will no longer be recommended to “potentially suspicious adults.” The update was announced in a blog post detailing the latest expansion of Meta’s child safety features, which includes new blocking and reporting capabilities for teenagers and additional protections for adult-managed accounts that feature children.

This comes after a 2023 lawsuit accused Facebook and Instagram of becoming a “marketplace for predators in search of children,” claiming that Meta’s platforms “allowed users to search for, like, share, and sell a crushing volume of [child sexual abuse material].” The same year, an investigation by The Wall Street Journal found that Instagram’s recommendation algorithms were actively promoting networks of pedophiles. 

Meta has since introduced a variety of online safety features for Facebook and Instagram users who are under 18, and some of these are now being expanded to adults who frequently post images of children — a group that Meta says frequently includes parents and talent managers. Instagram will now “avoid recommending” such accounts to suspicious adults, such as those who have been blocked by teens, and in turn avoid steering suspected creeps to adult-run accounts featuring children. The app will also hide comments from potentially suspicious adults on their posts, and make it harder for both kinds of accounts to find each other in Search.

While Meta says that these adult-managed accounts are “overwhelmingly used in benign ways,” the company has also been accused of knowingly allowing parents who sexually exploit their children for financial gain on Facebook and Instagram to remain on the platforms. Hiding potential predators from adult accounts featuring kids builds on Meta’s update last year that stopped accounts that heavily feature children from offering subscriptions or receiving gifts.

Other Teen Account features that are coming to accounts featuring kids in the coming months will automatically default them to Instagram’s strictest message settings and filter out offensive and inappropriate comments. Some additional safety features are rolling out to Instagram DMs that provide Teen accounts with a combined report and block option. Teen users will now also see the month and year that the account they’re messaging with joined Instagram to help them spot potential creeps and scammers.

The goal of this wristband is to provide less invasive tools to interact with computers for people with motor disabilities. 

Meta will not sign the EU's new rules, calling the implementation "overreach" and claiming it will throttle AI development.

• Dawn Choo took a 40% pay cut to pivot from finance to a tech job at Amazon.
• Choo's transition involved moving from a quant role at Bank of America to a business analyst role.
• Her career shift eventually led to her dream job at Meta, after applying around seven times.

This as-told-to essay is based on a conversation with Dawn Choo, the 34-year-old founder of Interview Master, based in Chattanooga, Tennessee. Her identity, employment history, and salary have been verified by Business Insider. This story has been edited for length and clarity.

I interned at Facebook in college, and my dream was to get a data scientist job at Instagram — but I didn't get an offer.

I took the first offer I got in college because I had interviewed so many times at so many different places. Finally, I got a finance offer from Bank of America, and I took it because I needed a job to stay in the country, even if it wasn't exactly the industry I wanted.

It was a quant role, but it wasn't very data-heavy. I did backend work, like building models to help predict if companies that took a loan from us were going to default on the loan. I was there for three and a half years, but I started applying for tech jobs about a year and a half into the job.

Again, I tried so many times. I was not the best at interviewing. I applied to about 100 places, interviewed at maybe 10, and then finally I got an Amazon offer in 2017.

I took a roughly 40% pay cut and a step back in my career

The Amazon job was for a business analyst role, and it was a really big pivot.

When I applied, I knew I was taking a step back in my career given the scope of work, but I didn't realize I would be taking a roughly 40% pay cut.

I was living in New York City in a one-bedroom with a roommate, so that 40% really made a big difference.

Despite what felt like moving backward, I could see the upsides of taking the job. Amazon's a big company, and I knew it was a step toward where I wanted to go. I had to make some adjustments, like eating at home more. But I also felt like it was a step back in my career because I suddenly stepped into a service-desk role.

I didn't love the work I did at Bank of America either, but at least I was building models and writing extensive documentation. At Amazon, I felt like I wasn't really learning much, and many times, I wondered, "Why did I take this pay cut? Why did I make this transition? Should I just go back?"

At times, it didn't feel like the right move, but I recognized that I had agency over that decision. I chose to be there, and it was a privilege for me to be able to make that choice.

Things got better

The upside of the work being very repetitive and simple was that I could automate it. The automation project started as a pet project — I randomly came up with the idea and pitched it to an executive. He loved it so much and kept pushing me to do it that eventually, I did.

I was promoted from business analyst to business intelligence engineer. What was initially my site tech project became a full-staff team of five business intelligence engineers.

I worked for Amazon for two years before getting my dream job as a data scientist at Instagram.

I interviewed at Meta so many times previously. After my internship, I applied about seven times and interviewed maybe four or five times. I almost canceled my final round of interviews because I couldn't get rejected again.

I think my experience working in tech and product changed my application. I also had a lot more leadership experience since I spearheaded a project. Plus, I matured around interviewing and presenting myself.

I worked at Instagram for about three years and three months. The office was beautiful. The people I worked with were incredible and made me feel challenged. I made a lot of good friends, and we went through COVID together. They were part of my pod.

Bets take time to pay off

For others thinking about making a career transition, I would say take the pay cut if you have to. I've always feared regret more than failure. I knew if I didn't take the Amazon job, I would be upset for not betting on myself.

It's also important to recognize that some of these bets take a long time to pay out. It took me two years, which wasn't that long, but I know other people where it took longer to get that payout.

Sometimes, even after the payout, you see other people in your situation and you think, "Wow, this person got this data science job at Facebook right out of college." So, at that point, I was about eight years older than this person doing the exact same thing. And it didn't feel great. So, maybe don't compare yourself to other people.

I will always say take the bet on yourself — and I'm doing it again. I pretty much took a 100% pay cut this time. I went from my comfy corporate job with insurance, travel perks, and stability to work for myself, and I hope the payout will come soon.

Key Points

• Nvidia's AI data center chips remain the gold standard.

• Amazon and Microsoft have been significant winners in AI due to their massive cloud infrastructure operations.

• Arista Networks and Broadcom have tremendous growth ahead in AI networking.

• 10 stocks we like better than Nvidia ›

It will be a massive undertaking to build out the hardware and support necessary to power increasingly advanced artificial intelligence and provide it at a global level where billions of people can access it.

According to research by McKinsey & Company, the world's technology needs will require $6.7 trillion in data center spending by 2030. Of that, $5 trillion will be due to the rising processing power demands of artificial intelligence (AI). These investments, though, will lay the groundwork for the next era of global innovation, which will revolutionize existing industries and create new ones.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Some key companies have already been experiencing significant growth due to the AI trend, and there is still likely a long runway ahead for players in key AI infrastructure spaces, including semiconductors, cloud computing, and networking.

Here are five top stocks to buy and hold for the next wave of AI innovation.

Nvidia: The data center AI chip leader

Inside these colossal AI data centers are many thousands of AI accelerator chips, usually from Nvidia (NASDAQ: NVDA). The company's graphics processing units (GPUs) are the only ones that can make use of its proprietary CUDA platform, which contains an array of tools and libraries to help developers build and deploy applications that use the hardware efficiently. CUDA's effectiveness -- and its popularity with developers -- has helped Nvidia win an estimated 92% share of the data center GPU market.

The company has maintained its winning position as it progressed from its previous Hopper architecture to its current Blackwell chips, and it expects to launch its next-generation architecture, with a CPU called Vera and a GPU called Rubin, next year. Analysts expect Nvidia's revenue to grow to $200 billion this year and $251 billion in 2026.

Amazon and Microsoft: Winning in AI through the cloud

AI software is primarily trained and powered through large cloud data centers, making the leading cloud infrastructure companies vital pieces of the equation. They're also Nvidia's largest customers. Amazon (NASDAQ: AMZN) Web Services (AWS) has long been the world's leading cloud platform, with about 30% of the cloud infrastructure market today.Through the cloud, companies can access and deploy AI agents, models, and other software throughout their businesses.

AWS's sales grew by 17% year over year in Q1, and it should maintain a similar pace. Goldman Sachs estimates that AI demand will drive cloud computing sales industrywide to $2 trillion by 2030. Amazon will capture a significant portion of that, and since AWS is Amazon's primary profit center, the company's bottom line should also thrive.

It's a similar theme for Microsoft (NASDAQ: MSFT). Its Azure is the world's second-largest cloud platform, with a market share of approximately 21%. Microsoft stands out from the pack for its deep ties with millions of corporate clients. Businesses rely on Microsoft's range of hardware and software products, including its enterprise software, the Windows operating system, and productivity applications such as Outlook and Excel.

Microsoft's vast ecosystem creates sticky revenue streams and provides it with an enormous customer base to cross-sell its AI products and services to. Microsoft has also invested in OpenAI, the developer behind ChatGPT, and works with it extensively, although that relationship has become somewhat strained as OpenAI has grown increasingly successful.

Regardless, Microsoft's massive footprint across the AI and broader tech space makes it a no-brainer.

Arista Networks and Broadcom: The networking tech that underpins AI

Within data centers, huge clusters of AI chips must communicate and work together, which requires them to transfer massive amounts of data at extremely high speeds. Arista Networks (NYSE: ANET) sells high-end networking switches and software that help accomplish this. The company has already thrived in this golden age of data centers, with top clients including Microsoft and Meta Platforms, which happen to also be among the highest spenders on AI infrastructure.

Arista Networks will likely continue benefiting from growth in AI investments, as these increasingly powerful AI models consume ever-increasing amounts of data. Analysts expect Arista Networks to generate $8.4 billion in sales this year (versus $7 billion last year), then $9.9 billion next year, with nearly 19% annualized long-term earnings growth.

Tightly woven into this same theme is Broadcom (NASDAQ: AVGO), which specializes in designing semiconductors used for networking applications.

For example, Arista Networks utilizes Broadcom's Tomahawk and Jericho silicon in the networking switches it builds for data centers. Broadcom's AI-related semiconductor sales increased by 46% year-over-year in the second quarter.

Looking further out, Broadcom is becoming a more prominent role player in AI infrastructure. It has designed custom accelerator chips (XPUs) for AI model training and inference. It has struck partnerships with at least three AI customers that management believes will each deploy clusters of 1 million accelerator chips by 2027. Broadcom's red-hot AI momentum has analysts estimating the company will grow earnings by an average of 23% annually over the next three to five years.

Should you invest $1,000 in Nvidia 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

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*Stock Advisor returns as of July 15, 2025

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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Arista Networks, Goldman Sachs Group, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Broadcom 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.

Key Points

• It's now possible to trade certain stocks on Solana's blockchain.

• That capability is attracting a lot of capital, and very quickly.

• You don't necessarily want to be investing in these tokenized assets just yet.

• 10 stocks we like better than Solana ›

Wall Street's market closes at 4 p.m. eastern time, but blockchains are open all night long. Thanks in part due to that after‑hours void, a tiny slice of the stock market has quietly migrated onto Solana (CRYPTO: SOL), turning a small but growing selection of stocks into tokens that trade 24/7.

Between mid‑June and July 4, Solana's on‑chain value of those tokenized stocks more than tripled, from about $13 million to $48 million, a jump powered almost entirely by a new platform called xStocks. By July 16, the chain featured more than $100 million worth of stocks, indicating that the pace of growth is still incredible.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

The quantity of dollars involved here might look trivial, but the growth rate is anything but. Let's dig into why this is happening, and what it could mean for long‑term investors in Solana and other cryptocurrencies.

Stock tokenization just went white-hot

The xStocks platform went live on June 30 with more than 60 U.S. tickers set up. This included companies you might own, like Microsoft, Tesla, Nvidia, Amazon, Meta Platforms, and more, all minted as a Solana token and tradable on major crypto exchanges like Kraken, Bybit, and several decentralized exchanges (DEXes) too.

Those tokens are said to be backed 1‑for‑1 by shares of the underlying stocks. Transactions settle in seconds, and they can move peer‑to‑peer at sub‑penny network fees. They can also be traded at any hour of the day or night, which is an experience most brokerage apps simply cannot match.

Speed and novelty explain part of the surge, but the quality of the technology enabling the move matters too.

Solana's cheap and fast transactions make sending fractional shares around the network highly economical, which in turn invites small investors, and also the development of relatively small-time decentralized finance (DeFi) applications that cater to that same group. The launch also coincided with the launch of so‑called "tax coins," an emerging segment of tokens that skim a trading levy and automatically funnel the proceeds into xStocks to distribute to holders as on‑chain dividends. Further DeFi innovation involving tokenized assets like stocks is all but guaranteed, and at the moment, Solana is where it all happens.

But before you rush in and buy tokenized stocks on Solana, be aware that there is a substantial amount of fine print here.

Liquidity is razor‑thin on tokenized stocks in a way that most investors never need to think about normally. Many xStocks trade only a few thousand dollars a day, so the risk of your purchases or sales failing due to insufficient liquidity is significant in some cases.

Furthermore, most tokenized stocks still fall under securities laws, no matter what wrapper they wear. If there are issues with regulators, platforms could be forced to delist assets or exclude U.S. users overnight, and that might make the tokenized stocks worthless or untradeable.

What this means for holders

Tokenized stocks are only one strand of Solana's real‑world asset (RWA) push, but they arrive as the chain is already outpacing rivals.

Total RWA value on Solana, which includes everything from U.S. Treasuries to funds, has surged 140% this year to reach roughly $564 million as of mid-July. If that trend holds, Solana could capture a meaningful share of the trillions in assets that consultants expect to go on‑chain by 2030. For reference, Boston Consulting Group (BCG) pegs the total addressable market for tokenized illiquid assets at about $16 trillion within five years.

For holders, the mechanics of how to benefit from this trend are very straightforward. Every stock transfer or dividend a smart contract triggers in turn burns a smidge of the coin in fees, tightening supply. It also implies that users and investors had to hold some of the coin to pay the fees. In theory, a booming stock token venue could replicate what meme coins did for Solana's fee revenue last winter, but with Wall Street credibility attached.

Investors intrigued by this development should consider two things.

First, as far as the tokenized stocks themselves go, you don't need to rush to buy them. If you're the average investor, you probably shouldn't be buying them at all for at least a few more quarters to let the open issues get settled. Just buy the stocks on the traditional equity market as you usually do, assuming you want to hold them at all.

Second, if you believe public stocks will migrate on‑chain in size and that Solana's speed will keep it competitive, buying and holding the coin for the long haul will give you exposure to the upside from that trend.

In short, the explosion of stock tokenization on the chain is quite bullish, and it's ensuring that Solana's long-term picture keeps looking better and better.

Should you invest $1,000 in Solana right now?

Before you buy stock in Solana, 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 Solana 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — 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 July 15, 2025

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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Alex Carchidi has positions in Amazon, Meta Platforms, Nvidia, Solana, and Tesla. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Microsoft, Nvidia, Solana, and Tesla. 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.

Key Points

• Nvidia has seen its stock soar thanks to incredible demand for its high-end GPUs.

• Nvidia faces challenges from other GPU makers and custom silicon projects from its biggest customers.

• This company is an AI leader on two fronts and trades at a reasonable valuation.

• 10 stocks we like better than Nvidia ›

Nvidia (NASDAQ: NVDA) has skyrocketed in value over the last three years to become the world's first $4 trillion company. The 10x-plus increase in value from three years ago was fueled by the massive spending on artificial intelligence (AI) infrastructure, of which Nvidia's graphics processing units (GPUs) are a key component.

Nvidia's dominance of the AI chip market faces some challenges, though. Competing GPU makers are catching up in price performance, and Nvidia's biggest hyperscale customers are leaning more on their custom silicon designs for generative artificial intelligence (AI) applications. That could weigh on its continued growth.

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 »

Meanwhile, another AI giant could quickly follow Nvidia into the $4 trillion club and climb to $4.5 trillion within a year, according to analysts at Oppenheimer. And right now, the stock looks even more attractive than Nvidia.

Can Nvidia remain the most valuable company in the world?

Nvidia has established itself as the clear leader in developing chips for AI training. Its competitive position is bolstered not just by maintaining more advanced technological capabilities than its next-closest competitor, though. It also leans on its proprietary software, CUDA, making it unlikely another chipmaker can supplant its position.

That said, some of Nvidia's biggest customers, like Meta Platforms (NASDAQ: META) and Microsoft (NASDAQ: MSFT), are wary of becoming overly reliant on Nvidia for their AI training hardware needs. Meta, for example, is taking its Meta Training and Inference Accelerator platform and applying it to more and more generative AI applications. The next version of its chip is designed to replace Nvidia chips in AI training for its Llama foundation model. It's already using its own chips in some AI inference cases.

Microsoft has similar aspirations for its Maia chips, but recently pushed back the timeline for its next-generation AI training chip to 2026 instead of this year. These types of setbacks have hit other hyperscalers in the past, including Meta, resulting in them putting in massive orders with Nvidia. However, as the big tech companies improve their design processes, they could displace a large portion of their demand for Nvidia's chips over time.

For now, Nvidia's position looks well protected. That's especially true after news that the U.S. will reverse its ban on the sale of the throttled-down H20 chips in China. Nvidia wrote down $4.5 billion in inventory last quarter after the policy went in place. As a result, the company should produce strong earnings growth through the rest of the year, fueled by China and the hyperscalers.

Still, the stock trades for a premium, approaching 40 times forward earnings estimates. At its current price and long-term hurdles, it might not be able to keep climbing as fast as some of the other big AI companies.

The one company that could soon take Nvidia's crown

Few companies even come close to the size of Nvidia at this point. There are just 10 companies with a market cap exceeding $1 trillion as of this writing, and just three of them are worth $3 trillion or more, including Nvidia itself.

But Microsoft is the next-closest to Nvidia at about $3.8 trillion as of this writing, and it could join the $4 trillion in the near future, according to analysts at Oppenheimer. They put a $600 price target on the stock, implying a market cap of about $4.5 trillion and 19% upside from its price as of July 15.

There are a couple of reasons Oppenheimer's analysts are bullish. First, they see acceleration in Microsoft's Azure cloud computing revenue. Azure has become the growth engine at Microsoft, fueled by demand for compute power needed for AI development. Microsoft's stake in OpenAI not only gives it a huge customer for Azure, but it also brings key tools for other AI developers.

That's fueled significant growth in demand. And despite spending $80 billion on capital expenditures, mostly going toward building and outfitting new data centers, Microsoft's management says demand continues to outstrip supply. Even so, Azure is growing faster than any of the three big public cloud platforms.

The other reason the analysts are bullish on Microsoft is the potential of its Copilot Studio. While they note demand for Microsoft's native AI assistant Copilot for Microsoft 365 is relatively tepid, the demand for its custom AI assistant platform Copilot Studio could produce much better results. That enables Microsoft to increase prices for its enterprise software suite while increasing retention rates. That should produce even more cash for the company to plow back into Azure and its massive capital return program, fueling earnings-per-share growth through higher earnings spread across fewer shares.

Shares of Microsoft have grown relatively expensive in their own right, with the stock trading for about 33 times forward earnings. But that's a reasonable multiple to pay for the stock of a company that's leading the AI industry on two fronts with its cloud computing and enterprise software businesses.

It's worth noting that Oppenheimer analysts updated their price target for Nvidia following the news that Nvidia expects the U.S. to reverse its ban on exporting chips to China. They now expect it to reach $200 per share, implying a market cap of $4.9 trillion. But for my money, I think Microsoft is the more attractive investment at the current price.

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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — 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 July 15, 2025

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. Adam Levy has positions in Meta Platforms and Microsoft. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. 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.

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• Meta is in the midst of a massive AI hiring spree to build its Superintelligence Labs.
• It spent $15 billion to hire Scale founder Alexandr Wang and announced plans for a data center nearly the size of Manhattan.
• Mark Zuckerberg says two factors besides pay help attract top AI researchers when recruiting.

What's on an AI researcher's wish list when being courted by a Big Tech firm?

Sure, money plays a part. But Mark Zuckerberg says the AI talent he's talked to is also interested in two other things.

"Historically, when I was recruiting people to different parts of the company, people are like, 'Okay, what's my scope going to be?'" he said on an episode of The Information's TITV on Monday. "Here, people say, 'I want the fewest number of people reporting to me and the most GPUs.'"

AI GPUs, or graphical processing units, are the chips that researchers use to build, train, and run foundational AI models and the products they power. Nvidia, whose H100 GPU became a hot commodity as the AI race kicked off, is viewed as the leader in the space and has since launched more powerful chips.

"Having basically the most compute per researcher is definitely a strategic advantage, not just for doing the work but for attracting the best people," the Meta CEO said.

Others hiring in AI have attested to the same phenomenon.

Perplexity CEO Aravind Srinivas last year recalled trying to poach an AI researcher from Meta who shot him down, saying, "Come back to me when you have 10,000 H100 GPUs."

"You have to offer such amazing incentives and immediate availability of compute," Srinivas said. "And we're not talking of small compute clusters here."

Big Tech companies and artificial intelligence startups alike are clamoring for the best talent in AI right now, with some like Meta offering multimillion-dollar pay packages.

Meta has turbocharged its plans to build out its AI infrastructure. The company recently announced plans for new data centers, including one almost as big as Manhattan. Meta also shelled out $15 billion to buy a 49% stake in Scale AI, founded by Alexandr Wang, who joined as Meta's chief AI officer as part of the deal.

Zuckerberg has also been personally involved in recruiting top AI talent.

And if a limited managerial scope and access to vast computing power aren't enough to lure top talent, there's always money — and Meta has plenty to offer its AI recruits.

The company has poached talent from rivals like Google, Anthropic, and OpenAI, with OpenAI CEO Sam Altman saying Meta is offering recruits $100 million signing bonuses.