Prediction: This Hypergrowth AI Stock Will Finish 2025 With the Largest Market Cap in the World (Hint: It's Not Nvidia)

2024 was the year Nvidia -- at least briefly -- became the world's largest company by market capitalization. The rising demand for artificial intelligence (AI) has put the computer chip maker in overdrive, with profits gushing. However, with a price-to-earnings ratio above 50 and profit margins expanded to much higher levels than its historical average, I don't think 2025 is a great year to bet on Nvidia. There are cheaper stocks to buy if you want to play the AI trend boom.Enter Amazon (NASDAQ: AMZN). The technology giant's stock has barely beat the S&P 500 in the last five years, with most of these gains coming in the first year of the COVID-19 pandemic. Here's why it can accelerate growth and finish 2025 as the stock with the largest market cap in the world.Amazon's largest profit driver is Amazon Web Services (AWS), the leading cloud computing infrastructure company in the world. AWS is one of the largest buyers of Nvidia chips. It builds the data centers that run the power-hungry AI tools that are growing like a weed. In the last few quarters, AWS' revenue growth has accelerated, starting at 12% year-over-year growth in Q2 2023 and finishing Q3 of 2024 with 19% year-over-year growth. Its annualized revenue run rate is now over $100 billion.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool