Latest news with #DavidTepper
Globe and Mail
a day ago
- Business
- Globe and Mail
Billionaire Investors Are Buying These 3 Artificial Intelligence (AI) Stocks Hand Over Fist
If you follow the world's wealthiest investors, you'll see a wide range of investing styles. Some focus on valuation. Others prioritize growth potential. A few look for arbitrage opportunities. But there's at least one common denominator among many ultrarich investors these days: They like artificial intelligence (AI) stocks. Billionaires are buying these three AI stocks hand over fist. 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 » 1. Alphabet Google parent Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) stands out as a top pick for several billionaire investors. Izzy Englander might be the most bullish about the tech stock. His Millennium Management hedge fund upped its position in Alphabet by 150.8% in the first quarter of 2025. Ken Griffin is another billionaire hedge fund manager who's enthusiastic about Alphabet stock. His Citadel Advisors increased its stake in the tech giant by 55.7% in Q1. Appaloosa's David Tepper also bought over 128,000 additional shares of Alphabet, bumping up his holding in the stock by 6.8%. What do these billionaire investors like about Alphabet? Its valuation is probably near the top of the list. The stock trades at a forward price-to-earnings ratio below 19. None of the other so-called "Magnificent Seven" stocks comes anywhere close to such an attractive valuation. Alphabet has also been showing that it's playing to win in the AI space. The company's Google Gemini 2.5 Pro ranks No. 1 overall on the LMArena leaderboard. Google Cloud continues to be the fastest-growing of the top three cloud service providers. 2. Amazon There isn't as much of a consensus among billionaire investors when it comes to Amazon (NASDAQ: AMZN). Chase Coleman's Tiger Global Management upped its stake in the e-commerce and cloud service giant by 2.7% in Q1 and Englander's Millennium Management boosted its position in Amazon by 5.3%. However, Griffin's Citadel Advisors reduced its Amazon holding by 43.5%. Tepper's Appaloosa trimmed its position in Amazon by 3.5%. But one billionaire loaded up on Amazon stock in the first quarter. George Soros bought more than 101,000 shares, increasing his hedge fund's stake in Amazon by 30.5%. Amazon is now the 11th largest holding in Soros Fund Management's $5.61 billion portfolio. Soros probably likes Amazon's bottom-line improvement. In Q1, the company's earnings soared 64% year over year to $17.1 billion. Amazon has been laser-focused on improving profitability -- and its efforts are clearly paying off. Amazon has also flexed its AI muscle. The company's Amazon Web Services unit still commands the largest market share in cloud services, thanks in part to its Amazon Bedrock platform that supports multiple AI models. Amazon recently introduced Alexa+, its next-generation AI assistant. 3. Meta Platforms Meta Platforms (NASDAQ: META) elicits different views among billionaire investors as well. It's still the largest holding for Coleman's Tiger Global, but the hedge fund didn't buy or sell shares of Meta in Q1. Englander and Griffin seemed to sour on Meta somewhat, though, slashing their positions in the stock by 38.9% and 44.2%, respectively. However, Tepper increased Appaloosa's stake in Meta by 12.2%, making it his portfolio's fifth largest holding. Steve Cohen, though, stood out as the biggest Meta bull in Q1. His Point 72 Asset Management increased its position in the Facebook and Instagram parent by a whopping 585%. What might Cohen find so appealing about Meta? It could simply be the company's continued strength in the advertising market. A staggering 3.43 billion people used Meta's family of apps daily in Q1. The average price per ad shown to those users increased by 10% year over year. I suspect that Cohen is enthusiastic about Meta's AI initiatives as well. Meta AI now has nearly 1 billion monthly active users. The company is also a leader in AI-powered smart glasses. CEO Mark Zuckerberg believes that glasses are "the ideal form factor" for AI. Should you invest $1,000 in Meta Platforms right now? Before you buy stock in Meta Platforms, 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 Meta Platforms 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 $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor 's total average return is992% — a market-crushing outperformance compared to172%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 9, 2025 Suzanne Frey, an executive at Alphabet, 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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, and Meta Platforms. The Motley Fool has a disclosure policy.
Yahoo
4 days ago
- Business
- Yahoo
Billionaires Sell Nvidia Stock and Buy a Robotaxi Stock Up 300% in 3 Years (Hint: Not Tesla)
The number of large institutional investors holding Nvidia declined 2% in the first quarter, while the number holding Uber increased 8% during the same period. Nvidia provides the hardware and software needed to build autonomous cars and robots, but DeepSeek's breakthroughs and chip export restrictions have weighed on the stock. Uber operates the largest ride-sharing platform in the world, which means the company is ideally positioned to aggregate demand for autonomous ride-sharing services such as Waymo. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) is ideally positioned to be a major player in the market for physical artificial intelligence (AI), a technology that lets autonomous machines such as cars and robots understand, navigate, and interact with the real world. Nevertheless, certain hedge fund billionaires sold shares in the first quarter: David Tepper at Appaloosa sold 380,000 shares of Nvidia, reducing his position 56%. Steven Schonfeld at Schonfeld Strategic Advisors sold 901,900 shares of Nvidia, cutting his stake 72%. Meanwhile, those same hedge fund managers, and others, bought Uber Technologies (NYSE: UBER), a company well positioned to benefit from robotaxis and whose stock has soared 300% in the past three years. David Tepper added 1.7 million shares of Uber, upping his stake 113%. It ranks among his top 10 holdings. Steven Schonfeld added 50,400 shares of Uber, upping his stake 7%. It ranks among his top 30 holdings. Bill Ackman at Pershing Square Capital added 30.3 million shares of Uber, starting a new position that now ranks as his largest holding. More broadly, recently filed Forms 13F show that the number of large institutional investors (i.e., those with at least $100 million in securities) holding Nvidia declined 2% sequentially in the first quarter. Meanwhile, the number of large asset managers holding Uber increased 8%. Read on to learn more about these stocks. Nvidia is the market leader in data center graphics processing units (GPUs), chips that are the industry standard in accelerating complex workloads such as training machine learning models and running artificial intelligence (AI) applications. Importantly, Nvidia holds more than 90% of the market in data center GPUs, and the market is forecast to grow at 28% annually through 2030. Nvidia has also developed a robust software platform called CUDA. It comprises developer tools such as code libraries, frameworks, and pretrained models that streamline the building of AI applications across multiple disciplines. For instance, Nvidia Drive is a platform for autonomous vehicles, and Nvidia Isaac supports autonomous robots. In short, Nvidia brings together the data center systems, software development tools, and embedded systems (i.e., onboard computers that power autonomous cars and robots). That vertical integration is an advantage, because it lets Nvidia design systems with the lowest total cost of ownership, and developers need not waste time integrating products from multiple vendors. Looking ahead, Wall Street estimates Nvidia's earnings will increase at 28% annually over the next three years. That consensus makes the current valuation of 46 times earnings look fair. So why did certain hedge funds sell the stock in the first quarter? Profit-taking probably contributed, but I suspect they were also worried about exports controls and DeepSeek. However, while the Trump administration has restricted the export of H20 GPUs to China, it also revoked the Biden-era AI Diffusion Rule that would have limited sales to dozens of countries. And while the cost efficiencies DeepSeek achieved could hurt demand for Nvidia GPUs, many experts expect the opposite. Lower costs will make AI accessible to more companies, which should more than offset any decrease in demand. Uber leads the U.S. ride-sharing market with a 76% share, according to Bloomberg. It also ranks second in the restaurant food delivery market, with a 24% share. The company is also the market leader in ride-sharing services in nine other countries, and the market leader in food-delivery services in eight countries. Here's the two-part investment thesis for Uber: First, the company should be able to grow its market share in ride-sharing and food-delivery services as consumers lean into new product categories such as grocery and retail, and the Uber One membership program. In addition, advertising revenue should keep growing steadily as Uber collects more consumer data. Second, Uber is ideally positioned to serve as a demand aggregator for autonomous ride-sharing companies. The company values the U.S. market alone at $1 trillion, and CEO Dana Khosrowshahi recently told analysts, "Uber can deliver the lowest operational costs for our [autonomous vehicle] partners because we are leaps and bounds ahead on every aspect of the go-to-market capabilities." Importantly, Uber is already involved with several autonomous ride-sharing companies, including Alphabet's Waymo in Phoenix; Austin, Texas; and, soon, Atlanta. Uber also works with WeRide in Abu Dhabi and, soon, Dubai, and it plans to add 15 more cities in the next five years. Similarly, May Mobility plans to deploy thousands of robotaxis on Uber in the next few years, with an initial launch in Arlington, Texas, slated for late 2025. Uber stock currently trades at 15 times earnings, a discount to the one-year average of 40 times earnings. The present valuation looks quite reasonable for a company whose earnings are forecast to grow at 25% annually over the next three years. Patient investors should feel comfortable buying a small position today. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Nvidia, and Uber Technologies. The Motley Fool has a disclosure policy. Billionaires Sell Nvidia Stock and Buy a Robotaxi Stock Up 300% in 3 Years (Hint: Not Tesla) was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
Billionaires Sell Nvidia Stock and Buy a Robotaxi Stock Up 300% in 3 Years (Hint: Not Tesla)
Nvidia (NASDAQ: NVDA) is ideally positioned to be a major player in the market for physical artificial intelligence (AI), a technology that lets autonomous machines such as cars and robots understand, navigate, and interact with the real world. Nevertheless, certain hedge fund billionaires sold shares in the first quarter: David Tepper at Appaloosa sold 380,000 shares of Nvidia, reducing his position 56%. Steven Schonfeld at Schonfeld Strategic Advisors sold 901,900 shares of Nvidia, cutting his stake 72%. Meanwhile, those same hedge fund managers, and others, bought Uber Technologies (NYSE: UBER), a company well positioned to benefit from robotaxis and whose stock has soared 300% in the past three years. 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 » David Tepper added 1.7 million shares of Uber, upping his stake 113%. It ranks among his top 10 holdings. Steven Schonfeld added 50,400 shares of Uber, upping his stake 7%. It ranks among his top 30 holdings. Bill Ackman at Pershing Square Capital added 30.3 million shares of Uber, starting a new position that now ranks as his largest holding. More broadly, recently filed Forms 13F show that the number of large institutional investors (i.e., those with at least $100 million in securities) holding Nvidia declined 2% sequentially in the first quarter. Meanwhile, the number of large asset managers holding Uber increased 8%. Read on to learn more about these stocks. 1. Nvidia Nvidia is the market leader in data center graphics processing units (GPUs), chips that are the industry standard in accelerating complex workloads such as training machine learning models and running artificial intelligence (AI) applications. Importantly, Nvidia holds more than 90% of the market in data center GPUs, and the market is forecast to grow at 28% annually through 2030. Nvidia has also developed a robust software platform called CUDA. It comprises developer tools such as code libraries, frameworks, and pretrained models that streamline the building of AI applications across multiple disciplines. For instance, Nvidia Drive is a platform for autonomous vehicles, and Nvidia Isaac supports autonomous robots. In short, Nvidia brings together the data center systems, software development tools, and embedded systems (i.e., onboard computers that power autonomous cars and robots). That vertical integration is an advantage, because it lets Nvidia design systems with the lowest total cost of ownership, and developers need not waste time integrating products from multiple vendors. Looking ahead, Wall Street estimates Nvidia's earnings will increase at 28% annually over the next three years. That consensus makes the current valuation of 46 times earnings look fair. So why did certain hedge funds sell the stock in the first quarter? Profit-taking probably contributed, but I suspect they were also worried about exports controls and DeepSeek. However, while the Trump administration has restricted the export of H20 GPUs to China, it also revoked the Biden-era AI Diffusion Rule that would have limited sales to dozens of countries. And while the cost efficiencies DeepSeek achieved could hurt demand for Nvidia GPUs, many experts expect the opposite. Lower costs will make AI accessible to more companies, which should more than offset any decrease in demand. 2. Uber Technologies Uber leads the U.S. ride-sharing market with a 76% share, according to Bloomberg. It also ranks second in the restaurant food delivery market, with a 24% share. The company is also the market leader in ride-sharing services in nine other countries, and the market leader in food-delivery services in eight countries. Here's the two-part investment thesis for Uber: First, the company should be able to grow its market share in ride-sharing and food-delivery services as consumers lean into new product categories such as grocery and retail, and the Uber One membership program. In addition, advertising revenue should keep growing steadily as Uber collects more consumer data. Second, Uber is ideally positioned to serve as a demand aggregator for autonomous ride-sharing companies. The company values the U.S. market alone at $1 trillion, and CEO Dana Khosrowshahi recently told analysts, "Uber can deliver the lowest operational costs for our [autonomous vehicle] partners because we are leaps and bounds ahead on every aspect of the go-to-market capabilities." Importantly, Uber is already involved with several autonomous ride-sharing companies, including Alphabet 's Waymo in Phoenix; Austin, Texas; and, soon, Atlanta. Uber also works with WeRide in Abu Dhabi and, soon, Dubai, and it plans to add 15 more cities in the next five years. Similarly, May Mobility plans to deploy thousands of robotaxis on Uber in the next few years, with an initial launch in Arlington, Texas, slated for late 2025. Uber stock currently trades at 15 times earnings, a discount to the one-year average of 40 times earnings. The present valuation looks quite reasonable for a company whose earnings are forecast to grow at 25% annually over the next three years. Patient investors should feel comfortable buying a small position today. 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor 's total average return is988% — a market-crushing outperformance compared to172%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 9, 2025
Globe and Mail
5 days ago
- Business
- Globe and Mail
Billionaires Are Selling Nvidia and Betting on This AI Stock That's Climbed Nearly 300% Over the Past 3 Years
Nvidia (NASDAQ: NVDA) has been a no-brainer choice for investors aiming to win in the artificial intelligence (AI) market. The stock has soared 1,500% over the past five years as this AI chip leader delivered quarter after quarter of record revenue growth -- and this story is far from over. Nvidia's market dominance and innovation should help it to benefit as the AI boom continues. But some billionaires have decided to move on, selling some or all of their Nvidia shares and focusing on other potential AI winners. For example, Stanley Druckenmiller of the Duquesne Family Office sold all his Nvidia shares in the third quarter of last year. Just recently, David Tepper of Appaloosa and Philippe Laffont of Coatue Management cut their positions in Nvidia. 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 » As some investors reduce exposure to the top chipmaker, another AI stock, one that's climbed nearly 300% over the past three years, is emerging as an investor favorite. Let's check it out. Among the top five The stock I'm talking about is among the top five stock holdings of Tepper, and it's the No. 1 stock holding of Laffont, as well as fellow billionaires Chase Coleman of Tiger Global Management and Stephen Mandel Jr. of Lone Pine Capital. Ole Andreas Halvorsen of Viking Global Investors is also bullish on this stock, opening a position in the first quarter of this year. This player that's been much sought after by billionaires in recent times is Meta Platforms (NASDAQ: META), a company you are probably very familiar with thanks to its social media dominance. Meta owns Facebook, Messenger, Instagram, and WhatsApp -- more than 3.4 billion people worldwide use at least one of these apps daily. Here's how billionaires Tepper, who oversees $8.3 billion, and Laffont, who manages $22 billion, took action on Nvidia and Meta in the first quarter: Tepper sold 55% of his Nvidia stock and now holds 300,000 shares. He increased his Meta position by 12% to 550,000 shares. It's his fifth-biggest stock position. Laffont cut his Nvidia position by 14% to 8,545,835 shares. He lifted his Meta position by 1.9% to 3,757,611 shares. As mentioned above, Meta is the biggest position in his portfolio. Building AI expertise Considering these moves and Meta's top spot in the portfolios of other billionaires, it's clear these expert investors see the company as a potential winner in the AI revolution. You may be wondering why this is the case, given that Meta is best known for its strengths in the social media industry. Well, Meta has also been building AI expertise in the form of its own large language model (LLM), Llama, to power innovations that may ensure its leadership in social media -- and, therefore, revenue growth. Here's how that works. Meta generates the lion's share of its revenue from advertisers across its social media apps. And through tools like AI assistants, Meta aims to keep us spending more time on the apps, prompting advertisers to pour more investment into advertising there to reach us. Meta AI, the company's current offering, is currently the world's most widely used AI assistant. On top of this, Meta's innovations in AI could lead to other products and services that boost revenue down the road. Meta clearly believes in the saying "go big or go home," as the company expects to reach as much as $72 billion in capital spending this year to support its AI ambitions. A look at valuation Now the question is: Should you follow the billionaires and buy shares of Meta? The stock trades for 27 times forward earnings estimates, making it more expensive than it was a couple of months ago when it fell to less than 20 times expected earnings. But this remains a reasonable valuation for a growth stock, particularly a profitable, well-established player that offers a secure revenue stream and even dividend payments. The next question is, in the AI boom, should you favor Meta over Nvidia? Investors who have already won on their Nvidia investment over time, such as certain billionaires, may rotate out of the stock and into Meta. Ramping up its AI investment, Meta could be well positioned to deliver gains in the quarters to come. Meta is also slightly cheaper than Nvidia, which today trades for 33 times forward earnings estimates. So, if you don't have any Meta shares yet, you may want to get in on this exciting story -- but you don't necessarily have to forget about Nvidia. The best strategy may be to hold shares of both of these AI leaders as the AI boom enters its next chapter. Should you invest $1,000 in Meta Platforms right now? Before you buy stock in Meta Platforms, 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 Meta Platforms 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor 's total average return is988% — a market-crushing outperformance compared to172%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 9, 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. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.
Yahoo
5 days ago
- Business
- Yahoo
Billionaires Are Selling Nvidia and Betting on This AI Stock That's Climbed Nearly 300% Over the Past 3 Years
Artificial intelligence chip designer Nvidia has been popular among billionaires in recent years, and its stock has soared more than 1,000%. Now, some of these billionaires are looking to another company that's investing significantly in AI. 10 stocks we like better than Meta Platforms › Nvidia (NASDAQ: NVDA) has been a no-brainer choice for investors aiming to win in the artificial intelligence (AI) market. The stock has soared 1,500% over the past five years as this AI chip leader delivered quarter after quarter of record revenue growth -- and this story is far from over. Nvidia's market dominance and innovation should help it to benefit as the AI boom continues. But some billionaires have decided to move on, selling some or all of their Nvidia shares and focusing on other potential AI winners. For example, Stanley Druckenmiller of the Duquesne Family Office sold all his Nvidia shares in the third quarter of last year. Just recently, David Tepper of Appaloosa and Philippe Laffont of Coatue Management cut their positions in Nvidia. As some investors reduce exposure to the top chipmaker, another AI stock, one that's climbed nearly 300% over the past three years, is emerging as an investor favorite. Let's check it out. The stock I'm talking about is among the top five stock holdings of Tepper, and it's the No. 1 stock holding of Laffont, as well as fellow billionaires Chase Coleman of Tiger Global Management and Stephen Mandel Jr. of Lone Pine Capital. Ole Andreas Halvorsen of Viking Global Investors is also bullish on this stock, opening a position in the first quarter of this year. This player that's been much sought after by billionaires in recent times is Meta Platforms (NASDAQ: META), a company you are probably very familiar with thanks to its social media dominance. Meta owns Facebook, Messenger, Instagram, and WhatsApp -- more than 3.4 billion people worldwide use at least one of these apps daily. Here's how billionaires Tepper, who oversees $8.3 billion, and Laffont, who manages $22 billion, took action on Nvidia and Meta in the first quarter: Tepper sold 55% of his Nvidia stock and now holds 300,000 shares. He increased his Meta position by 12% to 550,000 shares. It's his fifth-biggest stock position. Laffont cut his Nvidia position by 14% to 8,545,835 shares. He lifted his Meta position by 1.9% to 3,757,611 shares. As mentioned above, Meta is the biggest position in his portfolio. Considering these moves and Meta's top spot in the portfolios of other billionaires, it's clear these expert investors see the company as a potential winner in the AI revolution. You may be wondering why this is the case, given that Meta is best known for its strengths in the social media industry. Well, Meta has also been building AI expertise in the form of its own large language model (LLM), Llama, to power innovations that may ensure its leadership in social media -- and, therefore, revenue growth. Here's how that works. Meta generates the lion's share of its revenue from advertisers across its social media apps. And through tools like AI assistants, Meta aims to keep us spending more time on the apps, prompting advertisers to pour more investment into advertising there to reach us. Meta AI, the company's current offering, is currently the world's most widely used AI assistant. On top of this, Meta's innovations in AI could lead to other products and services that boost revenue down the road. Meta clearly believes in the saying "go big or go home," as the company expects to reach as much as $72 billion in capital spending this year to support its AI ambitions. Now the question is: Should you follow the billionaires and buy shares of Meta? The stock trades for 27 times forward earnings estimates, making it more expensive than it was a couple of months ago when it fell to less than 20 times expected earnings. But this remains a reasonable valuation for a growth stock, particularly a profitable, well-established player that offers a secure revenue stream and even dividend payments. The next question is, in the AI boom, should you favor Meta over Nvidia? Investors who have already won on their Nvidia investment over time, such as certain billionaires, may rotate out of the stock and into Meta. Ramping up its AI investment, Meta could be well positioned to deliver gains in the quarters to come. Meta is also slightly cheaper than Nvidia, which today trades for 33 times forward earnings estimates. So, if you don't have any Meta shares yet, you may want to get in on this exciting story -- but you don't necessarily have to forget about Nvidia. The best strategy may be to hold shares of both of these AI leaders as the AI boom enters its next chapter. Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Meta Platforms 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 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. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy. Billionaires Are Selling Nvidia and Betting on This AI Stock That's Climbed Nearly 300% Over the Past 3 Years was originally published by The Motley Fool
