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.

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 $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

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*Stock Advisor returns as of June 2, 2025

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.

In today's video, I discuss recent updates affecting Applied Digital (NASDAQ: APLD) and CoreWeave (NASDAQ: CRWV). To learn more, check out the short video, consider subscribing, and click the special offer link below.

*Stock prices used were the market prices of June 2, 2025. The video was published on June 2, 2025.

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Should you invest $1,000 in Applied Digital right now?

Before you buy stock in Applied Digital, 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 Applied Digital 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 $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $842,015!*

Now, it’s worth noting Stock Advisor’s total average return is 987% — a market-crushing outperformance compared to 171% 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 June 2, 2025

Jose Najarro has positions in CoreWeave. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

When it comes to dividend investing, I am less concerned with the dividend yield and more concerned with the dividend growth. Dividend investing is a total return strategy, and dividend growth stocks generally have higher share price appreciation potential.

In today's video, I will go through four stocks I deem forever dividend stocks that provide reliable and growing dividends backed by strong free cash flows. One of those stocks is Broadcom (NASDAQ: AVGO).

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Watch this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.

*Stock prices used were end-of-day prices of May 5, 2025. The video was published on May 6, 2025.

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

Before you buy stock in Broadcom, 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 Broadcom 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 $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $842,015!*

Now, it’s worth noting Stock Advisor’s total average return is 987% — a market-crushing outperformance compared to 171% 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 June 2, 2025

Mark Roussin, CPA has positions in AbbVie, Broadcom, and Prologis. The Motley Fool has positions in and recommends AbbVie, Prologis, and S&P Global. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy.

Mark Roussin is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Applied Digital (NASDAQ: APLD) was a double-digit winner on Thursday, as its stock price popped by over 10%.

That was due in no small part to the initiation of coverage of the cutting-edge data center builder's stock by an analyst, who, it turns out, is extremely bullish on its prospects. Applied's share price trajectory was all the more impressive, considering that the S&P 500 index basically closed flat across the trading session.

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An enthusiastic buy recommendation from a pundit

The initiating party was Citizens JMP's Greg Miller, who launched his tracking of Applied stock by tagging it with a market outperform (read: buy) recommendation at a price target of $12 per share.

That would be significant upside even after Thursday's rally in the shares, as that's a meaty 60%-plus above the stock's most recent closing level.

According to reports, Miller believes that Applied's pivot from its onetime specialty of Bitcoin mining infrastructure to its current focus on data centers is a clever move. He feels it should start to reap the benefits of this soon and anticipates the signing of a hyperscaler client in the very near future (while noting that this anticipated event has been delayed several times).

Nothing artificial about this potential

I'd agree that Applied's transformation from Bitcoin mining supply to data center infrastructure is a smart shift. I feel that, given the near-insatiable hunger for facilities that can support the relatively much higher resource demands of artificial intelligence (AI) functionalities, this market holds significantly more promise.

Should you invest $1,000 in Applied Digital right now?

Before you buy stock in Applied Digital, 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 Applied Digital 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 $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

Now, it’s worth noting Stock Advisor’s total average return is 962% — a market-crushing outperformance compared to 169% 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 May 19, 2025

Eric Volkman has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

Few investors enjoy market uncertainty, so the current state of affairs on Wall Street is probably a little unsettling for you. Buying dividend stocks can help calm your nerves because you can focus on collecting dividend checks instead of price volatility. Here are three brilliant dividend stocks that will serve you well now and are well worth holding for the long term.

1. The Monthly Dividend Company to the rescue

If you are watching the markets and feeling a little seasick, you might want to look at buying Realty Income (NYSE: O). The company pays monthly dividends, so it provides investors with a steady stream of income. The dividend, notably, has been increased annually for 30 consecutive years and is backed by an investment-grade-rated balance sheet. The real estate investment trust (REIT) is so focused on dividends that it actually trademarked the nickname, "The Monthly Dividend Company."

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Realty Income is the largest net lease REIT. This means that tenants pay for most property-level operating costs. It is a fairly low-risk approach in the sector when spread across a large portfolio.

Realty Income owns over 15,600 assets across the United States and Europe. And while retail properties make up around 75% of rents, these assets tend to be easy to buy, sell, and release if needed. The other 25% of rents, from things like industrial and gaming properties, provide diversification to the mix.

Historically well run and reliable, this REIT's lofty 5.5% yield should be on your radar screen given the uncertainty on Wall Street today.

2. Prologis is exposed, but you should take the long view

Next up is Prologis (NYSE: PLD), which is the largest REIT in the warehouse niche. It has a global footprint, owning assets in most of the world's major transportation hubs. That sounds like it would be a major problem in the middle of tariff issues, which is one of the reasons why the stock is down around 20% from its 52-week highs. This drop, however, has pushed the dividend yield up to an attractive 3.9%. That is near the highest level in a decade.

Prologis has increased its dividend annually for 12 years. And while it could be hurt by the tariff side of the geopolitical turmoil, international trade isn't going to stop. It is far more likely that trade lines shift and that well-located warehouses remain in high demand. In other words, the uncertainty today is an opportunity for long-term investors to buy the industry leader in a still important REIT segment.

3. AvalonBay provides a life necessity

AvalonBay (NYSE: AVB) is the largest apartment REIT by market capitalization. Its dividend yield today is around 3.4%. That's the lowest on this list, but apartment REITs tend to have modest yields. That yield is kind of middle of the road for AvalonBay, which is often afforded a premium over its peers. The dividend hasn't been increased every year but has trended steadily higher for decades.

There are two big reasons to like AvalonBay. First, even in difficult periods people need a place to live. Thus, the REIT provides a necessity. Second, AvalonBay has a long history of deftly managing its portfolio through good and bad markets. That includes shifting between buying, selling, and building assets depending on which will provide the highest returns.

And management has also shifted its geographic positioning along with demand trends, with the current effort being building new apartments in the Sun Belt region. If you favor industry leaders, AvalonBay is the apartment giant you'll want in your portfolio now and, likely, for years to come.

Go with the biggest and best if you are looking for dividend stocks

When times get tough, it is usually a good choice to focus on industry leaders. That said, the REIT sector offers a large number of large, industry-leading companies because of the various unique property niches in the sector. Given the high yields REITs offer, that makes this sector a brilliant area to look at for opportunities. And industry leaders Realty Income, Prologis, and AvalonBay are all great starting points.

Should you invest $1,000 in Realty Income right now?

Before you buy stock in Realty Income, 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 Realty Income 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 $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% 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 April 21, 2025

Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Prologis and Realty Income. The Motley Fool recommends AvalonBay Communities and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy.

Volatility has certainly risen in the past few weeks, and a lot of high-quality stocks are trading much cheaper than they were. However, a falling stock price does not necessarily make a stock a great buy.

However, in today's video, I will be discussing five stocks that do appear to be solid buys right now. These stocks range from growth stocks to dividend stocks. One of those stocks includes mega-cap giant Microsoft (NASDAQ: MSFT).

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Watch this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.

*Stock prices used were end-of-day prices of March 28, 2025. The video was published on March 29, 2025.

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

Before you buy stock in Microsoft, 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 Microsoft 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!*

Now, it’s worth noting Stock Advisor’s total average return is 787% — a market-crushing outperformance compared to 152% 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 April 10, 2025

Mark Roussin, CPA has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft. 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.

Mark Roussin is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Real estate investment trusts, or REITs, aren't well known for their volatility, and as a group, they tend to be more resilient than the typical S&P 500 company during tough times.

We're seeing this during the recent market downturn. The S&P 500 is down by roughly 12% as of this writing, since President Trump's tariff plan was announced, but the real estate sector is down by less than 10%.

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However, one of the most rock-solid companies in the real estate sector has taken quite a beating. Industrial real estate giant Prologis (NYSE: PLD) has fallen by 17% since the tariffs were announced, and although there are certainly some valid concerns, the fact remains that this is a rock-solid REIT with a bright future, currently trading at a discount.

Prologis and tariffs

Prologis is the largest real estate investment trust in the world and specializes in logistics real estate. Think warehouses, distribution centers, and similar properties. In all, the company owns nearly 5,900 properties with a total of 1.3 billion square feet in 20 countries around the world.

As you might expect, Amazon.com (NASDAQ: AMZN) is the largest tenant, and other major Prologis customers include Walmart (NYSE: WMT), UPS (NYSE: UPS), Home Depot (NYSE: HD), and many other major retailers and logistics companies that are household names to most Americans.

To be fair, there are certainly some tariff concerns. Many of Prologis' major tenants import a lot of the products they sell (Amazon is certainly in this category), and there are concerns that demand for logistics properties could temporarily soften. As CEO Hamid Moghadam recently said, "In the interim, tariffs are inflationary and growth-reducing." But long-term, if tariffs lead to more domestic manufacturing, it could be a net benefit for Prologis, as U.S. businesses would need more logistics space. But to be clear, in the short term, tariffs are almost definitely a negative for the business.

Reasons to take a closer look

There are a few good reasons why Prologis could be a steal at the current price. For one thing, the business entered 2025 with strong momentum, with 10% year-over-year growth in funds from operations (FFO -- the real estate version of "earnings") in the fourth quarter and generally strong leasing activity.

Furthermore, industrial property values have declined in recent years because of falling demand and higher interest rates. At first, this might sound like a reason not to buy. But CEO Hamid Moghadam recently said that he sees the market near an "inflection point," and falling interest rates could cause these trends to sharply reverse course. With the latest expectation of four 0.25% Federal Reserve rate cuts in 2025, according to the CME FedWatch tool, there could be a nice tailwind coming.

With e-commerce accounting for 56% of all retail sales growth in the United States last year and expected demand for 250 million to 350 million square feet of new logistics space over the next five years because of e-commerce, there could be a strong environment for several years.

The company is also doing a great job of creating shareholder value through development and expects to spend $5 billion in 2025 alone. With $7.4 billion in liquidity and access to cheaper capital than peers thanks to its excellent balance sheet, the company has the financial flexibility to pursue opportunities as they arise.

Prologis also has a lot of embedded rent growth, as industrial rental rates soared during the pandemic years, and there are a lot of older leases that are yet to reset to the current market rents. In the fourth quarter of 2024, Prologis reported cash rent increases of 40.1% on new and renewal leases, and this elevated rent growth should continue for the next few years.

Last but certainly not least, Prologis has been quietly, but aggressively, getting into the data center real estate space, and sees a massive opportunity to scale.

Lots of upside potential

After the recent decline, Prologis trades for a historically low valuation of just 16 times its 2025 FFO guidance. And at the current price, the stock has a 4.3% dividend yield as well as a fantastic track record of raising its payout. In fact, the FactSet consensus estimates Prologis' net asset value at $125 per share, about 34% above the current stock price.

As mentioned, there are certainly some legitimate tariff concerns for a company whose primary business is leasing an international network of distribution centers. However, this business will be just fine over the long run, and we should have more clarity about how the tariff plans could affect the company's results when it reports earnings on April 16. But even before we see the latest numbers, Prologis has jumped toward the top of my buy list in the stock market downturn.

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

Before you buy stock in Prologis, 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 Prologis wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $578,035!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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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. Matt Frankel has positions in Amazon and Prologis. The Motley Fool has positions in and recommends Amazon, Home Depot, Prologis, and Walmart. The Motley Fool recommends United Parcel Service and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy.