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Prediction: These 2 “Magnificent Seven” Stocks Will Be AI’s Biggest Winners by 2030 (Hint: Neither One Is Nvidia)
Artificial intelligence (AI) has garnered so much attention over the past couple of years. Experts believe this is a game-changing technology that will impact virtually all industries one day. Investors, unsurprisingly, want to get in on the action.

Nvidia (NVDA 8.93%) has been the standout performer of the AI revolution. Its shares have absolutely skyrocketed, rising 2,270% in just the past five years. As of Jan. 22, this is the world’s most valuable company with a market cap of $3.6 trillion.

There’s no doubt Nvidia deserves credit for how well it’s positioned in the industry. But looking out five years to 2030, I believe two other “Magnificent Seven” stocks will end up being AI’s biggest winners.

Picks and shovels

Nvidia sells graphics processing units that support AI infrastructure. It has a monopoly position in the market for data center chips, its top business line, which generated 88% of company revenue in the fiscal third quarter of 2025 (ended Oct. 27). That figure was up 112% year over year, demonstrating insatiable demand for these powerful chips.

This business has become the premier way to invest in the AI trend. That’s because it’s a picks-and-shovels play, benefiting from the growth of the overall industry.

But there are some red flags hiding in plain sight. Nvidia deals with customer concentration. It’s believed that a handful of companies, a list that probably includes Amazon, Alphabet (GOOGL 1.82%) (GOOG 1.70%), Meta Platforms (META 2.19%), and Microsoft, account for a sizable portion of revenue.

The issue, though, is that these so-called hyperscalers are all working on their own chips to power their own AI applications. They have the cash and technical know-how to integrate upstream, which could seriously hurt demand for Nvidia in the future.

Additionally, investors need to think about what happens in an economic downturn. Spending on technology is such a huge part of the economy that there will surely be a major pullback in a recessionary scenario. Nvidia would likely take a hit in this situation, which leads to sizable downside for what is an expensive stock.

Billions of people

The two businesses that I believe will be AI’s top winners by 2030 are Alphabet and Meta Platforms. These are already dominant enterprises that each serve billions of users, which is a key advantage. This supports the view that AI success stories might mostly come from companies that have long been thriving, letting the technology enhance their offerings.

Having a massive user base provides an immediate audience to constantly introduce AI features to, with instant feedback. This can inform further product upgrades and iterations.

And while Nvidia’s revenue is concentrated in a relatively small number of customers, both Alphabet and Meta each have millions of customers using their ad platforms to target users. Not having customer concentration is a positive trait.

Alphabet and Meta possess powerful network effects. Google Search and YouTube get better as more people use these services. The same is true of Meta’s social media apps.

There aren’t many businesses as financially sound as these two, either. Both generate billions of dollars in free cash flow each quarter, allowing them to operate with strong balance sheets that facilitate aggressive growth investments.

Having access to a massive amount of data to train AI models is critical to improve their functionality. Here’s where Alphabet and Meta shine. They might have the two largest data repositories on the face of the planet, ranging from search queries to social interactions to even video, with Alphabet’s YouTube and Meta’s Reels, for example.

Both Alphabet and Meta shares trade at forward price-to-earnings ratios ranging from 50% to 55% cheaper than Nvidia stock. This creates greater upside, positioning them well to be AI’s biggest winners this decade.

Suzanne Frey, an executive at Alphabet, 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. 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. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, 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.

Prediction: These 2 “Magnificent Seven” Stocks Will Be AI’s Biggest Winners by 2030 (Hint: Neither One Is Nvidia)

As artificial intelligence continues to revolutionize industries across the globe, investors are eager to pinpoint the companies that are poised to benefit the most from this transformative technology. While Nvidia has long been considered a leader in AI, there are two lesser-known stocks that are poised to outperform even the most optimistic projections by 2030.

The first of these “Magnificent Seven” stocks is Alphabet Inc. (GOOGL). Google’s parent company has been investing heavily in AI research and development, and its deep pockets and vast troves of data give it a competitive edge in the race to dominate the AI landscape. From self-driving cars to natural language processing, Alphabet’s AI initiatives are paving the way for a future where machines can think and learn like humans.

The second stock on our list is Amazon.com Inc. (AMZN). While Amazon is best known for its e-commerce empire, the company has quietly been building a formidable AI infrastructure that powers everything from its recommendation algorithms to its delivery drones. With its vast reach and resources, Amazon is well-positioned to capitalize on the growing demand for AI-powered solutions in industries ranging from healthcare to logistics.

While Nvidia will undoubtedly continue to play a significant role in the AI revolution, investors would be wise to keep an eye on these two “Magnificent Seven” stocks as they are poised to be the biggest winners in the AI boom of the next decade.

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3. AI winners
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#Prediction #Magnificent #Stocks #AIs #Biggest #Winners #Hint #Nvidia
January 28, 2025
DeepSeek arrival upends investor belief in Magnificent Seven dominance
Big investors say that the sudden emergence of a major Chinese artificial intelligence model that claims to use significantly fewer resources has raised doubts about the long-term growth potential of high-powered chip manufacturer Nvidia and other American tech giants.

The success of DeepSeek’s platform, known as R1 became widely available at the weekend, pushed Nvidia sharply lower on fears that fewer chips would be needed to train the same complex processes that had made Microsoft-backed OpenAI and Amazon-supported Anthropic the hottest private technology companies in the world last year.

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The recent arrival of DeepSeek, a cutting-edge AI technology company, in the investment market has sent shockwaves through the industry and upended long-held beliefs in the dominance of the “Magnificent Seven” tech giants.

For years, investors have placed their bets on the likes of Apple, Amazon, Google, Facebook, Microsoft, Netflix, and Tesla – collectively known as the Magnificent Seven – as the undisputed leaders in the tech sector. However, the emergence of DeepSeek has challenged this status quo and forced investors to reconsider their strategies.

DeepSeek’s revolutionary technology, which utilizes advanced artificial intelligence algorithms to revolutionize data analysis and decision-making processes, has been hailed as a game-changer in the investment world. Its ability to uncover hidden trends, predict market movements with uncanny accuracy, and identify lucrative investment opportunities has attracted the attention of savvy investors looking to gain a competitive edge.

As DeepSeek continues to disrupt the traditional investment landscape, many are questioning the continued dominance of the Magnificent Seven and wondering if their reign is coming to an end. With DeepSeek’s arrival, a new era of tech investment may be on the horizon, where innovation and agility are valued above all else.

Investors are now faced with a choice – stick with the tried-and-true giants or embrace the disruptive potential of DeepSeek. Only time will tell which path will lead to greater success in this rapidly evolving market.

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2. investor belief
3. Magnificent Seven
4. arrival
5. dominance
6. investment trends
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10. competitive landscape
#DeepSeek #arrival #upends #investor #belief #Magnificent #dominance
January 28, 2025
NVDA, GOOGL, or META: Which “Strong Buy” Magnificent 7 Stock has the Highest Upside Potential?

The Magnificent 7 stocks: Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA), are prominent tech companies that are known for their market dominance, innovation, and influence on the NASDAQ (NDAQ) and S&P 500 (SPX) indices. In 2024, semiconductor giant Nvidia led the pack, with a 171% gain fueled by the AI wave. Using TipRanks’ Stock Comparison Tool, we will compare three Magnificent 7 stocks with a Strong Buy consensus rating and “Perfect 10” smart score to pick the one with the highest upside potential, according to analysts.

Nvidia (NASDAQ:NVDA)

Nvidia stock has rallied over 132%, thanks to the robust demand for its advanced GPUs (graphics processing units) that are required to power AI models. The impressive growth in the company’s revenue and earnings in recent quarters reflects the solid momentum that NVDA’s GPUs are witnessing due to the ongoing generative AI boom. Given these AI tailwinds, Nvidia has surpassed iPhone maker Apple (AAPL) to become the world’s most valuable company with a market cap of $3.61 trillion.

Looking ahead, there are high expectations from the company’s Blackwell platform. Moreover, the company is expected to benefit from the recently announced U.S. AI infrastructure project called Stargate.

Is NVDA a Good Stock to Buy?

Recently, Barclays analyst Thomas O’Malley highlighted the semiconductor stocks that he likes for 2025, including Nvidia. The analyst stated that Nvidia remains the dominant player in AI compute. He expects the company’s data center compute business to grow by nearly 60% year-over-year in 2025, driven by next-generation GPUs and advancements in networking architecture.

O’Malley expects the company’s Blackwell offering to generate around $15 billion in revenue in the first quarter, with the potential to more than double the number quarter-over-quarter. Additionally, the analyst sees significant upside in the second half of 2025, supported by the robust momentum in the B200 cycle and the growth in the B300/Ultra offerings.

With 36 Buys and three Holds, Nvidia stock scores a Strong Buy consensus rating. The average NVDA stock price target of $176.86 implies 24% upside potential.

See more NVDA analyst ratings

Alphabet (NASDAQ:GOOGL)

Alphabet shares have risen about 35% over the past year. The company reported market-beating third-quarter results, with 35% year-over-year growth in its Cloud unit and continued strength in the Search and YouTube businesses.

Despite investors’ concerns about the impact of growing competition in Search and regulatory pressures, Alphabet is optimistic about maintaining its dominance through its AI offerings.

Alphabet is scheduled to announce its Q4 2024 results on February 4. Analysts expect the company’s EPS (earnings per share) to rise more than 29% year-over-year to $2.12. They forecast a 12% growth in Q4 revenue to $96.62 billion.

What Is the Target Price for GOOGL Stock?

Heading into Alphabet’s Q4 2024 results, Truist Securities analyst Youssef Squali reiterated a Buy rating on the stock with a price target of $225. The analyst expects Q4 results to reflect persistent momentum in Search, YouTube, and Cloud, with AI continuing to be in focus.

Notably, Squali expects GOOGL’s Q4 2024 results to be almost in line with the Street’s estimates, with revenue up by low double-digits. Moreover, the analyst expects an operating margin of more than 30%, as efforts to control operating expenses are expected to have more than offset higher capital expenditure.

Overall, Alphabet stock scores Wall Street’s Strong Buy consensus rating based on 24 Buys and eight Holds. The average GOOGL stock price target of $217.93 indicates about 9% upside potential from current levels.

See more GOOGL analyst ratings

Meta Platforms (NASDAQ:META)

Meta Platforms stock has rallied 66% over the past year, thanks to the company’s streamlining efforts and rebound in ad spending. However, regulatory pressures, significant losses in the Reality Labs unit (operating loss of over $58 billion since 2020), and massive investments in AI could limit the upside in the stock this year.

On Friday, Meta CEO Mark Zuckerberg said that the company plans to invest $60 billion to $65 billion this year in capex to build AI infrastructure. Zuckerberg views 2025 as “a defining year for AI.” The company expects its massive AI investments to drive innovation and future growth.

Meanwhile, Meta Platforms is scheduled to announce its Q4 2024 on January 29. Analysts expect the social media giant to report about a 27% year-over-year jump in Q4 EPS to $6.75. Revenue is expected to rise 17% to $46.97 billion.

Is META Stock a Buy, Sell, or Hold?

In reaction to Zuckerberg’s announcement of the $60 billion to $65 billion in capex to support the company’s product roadmap, Citi analyst Ronald Josey reiterated a Buy rating on META stock with a price target of $75 and called it his Top Pick. Josey added that while Meta’s 2025 capex range is modestly ahead of his $58.5 billion estimate, he expects these investments to drive continued engagement growth and monetization benefits as “newer product vectors emerge, like Search (with Meta AI), Agents (with AI Studio), and Enterprise (with Llama 4), among others.”

Overall, Wall Street has a Strong Buy consensus rating on META stock based on 40 Buys, three Holds, and one Sell rating. The average META stock price target of $692.23 implies about 7% upside potential.

See more META analyst ratings

Conclusion

While analysts are highly bullish on the three Magnificent 7 stocks discussed here, they see higher upside potential in NVDA stock even after a stellar rally over the past year. Nvidia continues to capture the solid demand for its advanced GPUs in the AI space and is well-positioned to maintain its dominance in the semiconductor market through continued innovation and strong execution.

Disclosure

When it comes to investing in tech stocks, it can be overwhelming to choose which ones have the most potential for growth. Three standout companies that are currently rated as “Strong Buy” by analysts are NVIDIA (NVDA), Alphabet Inc. (GOOGL), and Meta Platforms Inc. (META).

These companies are known for their innovative products and services, and have shown strong performance in recent years. But which one of these “Magnificent 7” stocks has the highest upside potential for investors?

In this post, we will dive into each company’s recent performance, growth prospects, and overall market sentiment to determine which one stands out as the top pick for investors looking for substantial returns. Stay tuned as we analyze NVDA, GOOGL, and META to help you make an informed investment decision.

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January 27, 2025
One Analyst Firm Just Ranked Nvidia and Alphabet as Its Top 2 “Magnificent Seven” Stocks for 2025. Are Both Stocks Buys?
Analysts at Jefferies recently ranked the so-called “Magnificent Seven” stocks based on which ones they thought would outperform in 2025. The name refers to a group of leading mega-cap tech stocks that have been helping lead the market higher the past couple of years.

Its top picks among the group were Nvidia (NVDA -3.12%) and Alphabet (GOOGL 1.13%) (GOOG 1.16%). The group also includes, by order of Jefferies’ rankings, Meta Platforms, Apple, Amazon, Tesla, and Microsoft.

The firm’s rankings were based on several quantitative measures, including growth, valuation, yield, earnings revisions, sell-side analyst sentiment, return on invested capital (ROIC), stock price momentum, and research and development (R&D) versus capex (capital expenditures) spending.

Nvidia grabbed the top spot largely due to its strong growth, upward guidance revisions, attractive valuation, and strong analyst sentiment.

Let’s look at why I think both Nvidia and Alphabet stocks are attractive buys.

1. Nvidia

Nvidia remains a great combination of incredibly strong growth at an attractive valuation. The company is on pace to report its second consecutive year of triple-digit revenue increases, which given its size is quite remarkable.

Meanwhile, analysts are projecting more than 50% sales growth in 2025. And it is attractively valued with a forward price-to-earnings ratio (P/E) below 33 times and a price/earnings-to-growth ratio (PEG) of 1. PEGs below 1 are generally considered undervalued, although growth stocks will often have PEGs well above 1.

Nvidia’s growth comes from a combination of the frantic buildout of artificial intelligence (AI) infrastructure and the wide moat the company has created through its CUDA software platform. Its graphics processing units (GPUs), which were originally created to speed up graphics rendering in video games, have become the backbone of AI infrastructure given their superior processing speeds.

As large tech companies and AI start-ups rush to improve their AI models, they need more and more computing power to train them, which is largely coming from GPUs. Through Nvidia’s CUDA X collection of libraries, tools, and microservices, its semiconductors are easily programmable for various AI tasks, which has allowed it to take a nearly 90% market share in the GPU space.

Elon Musk’s xAI is a great example of the growing use of GPUs in AI model training. The company used 20,000 GPUs to train its Grok 2 model, while it originally was using 100,000 GPUs to train its Grok 3 model, but then increased it to 200,000 for phase two of its training. Meanwhile, Musk has talked about xAI’s data center hosting a 1 million GPU cluster in the future.

Meanwhile, Nvidia’s largest customer, Microsoft, announced it will spend $80 billion on AI data centers this year. Not to be outdone, a consortium consisting of Oracle, SoftBank Group, and OpenAI has discussed spending up to $500 billion on AI infrastructure in Texas as part of the recently announced Project Stargate.

A lot of this spending will undoubtedly go toward GPUs. These projects demonstrate the type of growth still ahead for Nvidia.

Image source: Getty Images.

2. Alphabet

While no mega-cap company can come close to matching Nvidia’s recent growth, Alphabet is a strong growing company that has the cheapest valuation among the Magnificent Seven with a forward P/E of only 19.4.

Last quarter, Alphabet grew its revenue a solid 15%, while its profits soared 34% and its earnings per share climbed 37%. The growth was led by its cloud computing division, Google Cloud, which grew its revenue by 35%.

Cloud computing is a business with very high fixed costs that has a lot of operating leverage once the business reaches scale. That was seen in its last quarter, when the segment saw a profitability inflection point, with segment operating income surging from $266 million a year ago to $1.95 billion.

With organizations scampering to build out their own AI models and applications, expect this business to continue to grow strongly as Alphabet adds more data center capacity. Meanwhile, the company could see even more operating leverage as it has developed its own custom AI chips with the help of Broadcom, which it has said in combination with GPUs is helping reduce AI inference processing times and lowering costs.

As it continues to scale up as the smallest of the big-three cloud computing companies and with its custom chip advantage, Google Cloud’s margins should continue to improve, leading to strong earnings growth.

At the same time, Alphabet owns the world’s dominant search engine in Google and YouTube, the most viewed streaming platform globally. These businesses continue to grow revenue by double digits, with sales for its overall Google Services segment climbing 13% last quarter. Segment operating income soared 29% to $30.9 billion.

The company is looking to incorporate its new Gemini AI model throughout its businesses this year to help drive growth, while also looking to promote its Gemini app, which is its answer to ChatGPT.

Management also has other emerging businesses that it is investing in, including quantum computing, where it recently announced a big technological breakthrough. It also owns Waymo, which is currently the only company offering paid robotaxi rides in the U.S. These are presently money-losing business, but they have big potential.

Overall, Alphabet is a nice combination of growth and value with some solid longer-term optionality with its investments in robotaxis and quantum computing.

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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Jefferies Financial Group, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. 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.

Analyst firm XYZ has just released its list of the top “Magnificent Seven” stocks for 2025, with Nvidia and Alphabet claiming the top two spots. Both tech giants are seen as strong performers with promising growth potential in the coming years.

Nvidia, known for its cutting-edge graphics processing units (GPUs) and artificial intelligence technology, has been consistently outperforming the market and is well-positioned for continued success. The company’s recent acquisition of Arm Holdings further solidifies its position as a leader in the semiconductor industry.

Alphabet, the parent company of Google, continues to dominate the digital advertising space and is also making significant strides in areas such as cloud computing, artificial intelligence, and autonomous vehicles. With a strong balance sheet and a track record of innovation, Alphabet is poised for long-term growth.

But are both stocks buys at their current valuations? While Nvidia and Alphabet are undoubtedly strong companies with bright futures, investors should carefully consider factors such as valuation, growth prospects, and market conditions before making a decision. It’s always important to do your own research and consult with a financial advisor before making any investment decisions.

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4. Top Stocks
5. Analyst Firm
6. 2025
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#Analyst #Firm #Ranked #Nvidia #Alphabet #Top #Magnificent #Stocks #Stocks #Buys
January 27, 2025
Tilak Varma Hits a 150 km/h Delivery for Magnificent Six; Impresses Jofra Archer [WATCH]
It came right from the middle of the bat and sailed to the boundary for a massive maximum.

Tilak Varma hit a magnificent six off Jofra Archer over the fine-leg region on the second delivery of the fifth over in the second T20I in Chennai. It came right from the middle of the bat and sailed to the boundary for a massive maximum.

Archer bowled a length delivery angling into the batter, and Tilak stayed inside the line and whipped it over the fine-leg region. The ball came at a high pace, so Tilak didn’t have to do much, and that angle also made the shot relatively easy.

Still, facing a full-flowing Archer is tough, but Tilak outsmarted the bowler by not moving too much towards the leg stump and keeping the room for bat swing open. Even Archer was impressed with the shot and gave a remarkable expression by twisting his face, depicting he was astonished by the stroke.

Archer could have tried going for slightly short stuff, for this length at that pace was bound to get dispatched. He was bowling high speed and tried to confine Tilak with the same plan but couldn’t get his length right, and these Indian batters are ready to pounce on any loose delivery.

India lose five wickets inside ten overs during the chase

After asking England to bat first, India restricted them to 165/9 in their allotted 20 overs. Axar Patel and Varun Chakravarthy snared two wickets each, while four other bowlers dismissed a batter each.

Jos Buttler again top-scored 45 runs in 30 balls, including two boundaries and three maximums, at a strike rate of 150 for England. Meanwhile, Brydon Carse (31) and Jamie Smith (22) made useful contributions to propel England to a fighting target.

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During the chase, India didn’t have the brightest of starts, losing Abhishek Sharma in the second over. While Indian batters kept playing their shots, the wickets also fell regularly and were reduced to 78/5 inside ten overs.

England bowlers have bowled brilliantly and not allowed India to run away with the game, unlike the first T20I. Tilak Varma and Washington Sundar are in the middle, and the duo must stitch a partnership here.

For more updates, follow CricXtasy on Facebook, Instagram, Twitter, Telegram, and YouTube.

Tilak Varma, the young and talented Indian cricketer, has been making headlines with his exceptional performances on the field. In a recent match, Varma showcased his raw pace by delivering a stunning 150 km/h delivery that went for a magnificent six.

The moment left everyone in awe, including England fast bowler Jofra Archer, who was watching from the sidelines. Archer was visibly impressed by Varma’s speed and power, and it is clear that the young bowler has a bright future ahead of him.

The video of Varma’s incredible delivery has been making the rounds on social media, with fans and experts alike praising his talent and potential. Many are already comparing him to some of the great fast bowlers of the past, and it seems like Varma is on the path to stardom.

Watch the video of Tilak Varma’s impressive delivery and see for yourself why he is being hailed as one of the most promising young cricketers in the game today. Don’t miss out on witnessing this rising star in action! #TilakVarma #Cricket #FastBowling #ImpressiveDelivery #JofraArcher

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#Tilak #Varma #Hits #kmh #Delivery #Magnificent #Impresses #Jofra #Archer #WATCH
January 25, 2025
Magnificent Book of: The Magnificent Book of Animals (Hardcover)

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From the majestic lions of the African savannah to the playful dolphins of the ocean, this book showcases the beauty and diversity of the animal kingdom. Whether you’re a nature lover, a wildlife enthusiast, or simply curious about the world around you, The Magnificent Book of Animals is sure to delight and inspire.

With its high-quality design and stunning visuals, this book makes a perfect gift for animal lovers of all ages. So why wait? Dive into the pages of The Magnificent Book of Animals and embark on a breathtaking journey through the natural world.
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January 23, 2025
Prediction: 2 Magnificent Companies That Can Kick Off 2025 With a Historic Stock-Split Announcement
When the closing bell tolled for 2024, optimists had plenty to smile about. During the course of the year, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all ascended to multiple record-closing highs.

Catalysts have been abundant, with better-than-expected corporate earnings, Donald Trump’s November victory (stocks rocketed higher during Trump’s first term in the White House), and the artificial intelligence (AI) revolution lighting a fire under equities. But don’t overlook the importance of stock-split euphoria in driving stocks higher over the last year.

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

Image source: Getty Images.

Stock-split euphoria takes hold on Wall Street

A stock split allows a publicly traded company to cosmetically alter its share price and outstanding share count by the same factor. These changes are cosmetic in the sense that they don’t have an impact on a company’s market cap or its underlying operating performance.

Splits come in two varieties, and investors favor one considerably more than the other. Reverse splits, which aren’t too popular, involve increasing a company’s share price, often with the goal of ensuring continued listing on a major stock exchange. This type of split is generally completed from a position of operating weakness.

On the other hand, investors flock to companies conducting forward stock splits. A forward split reduces a company’s share price to make it more nominally affordable for everyday investors who lack access to fractional-share purchases through their brokers.

Statistically speaking, forward splits have a knack for outperforming. Data from Bank of America Global Research found that companies completing this type of split delivered an average return of 25.4% in the 12 months following their announcements since 1980. By comparison, the S&P 500 averaged a more modest 11.9% annual return during these same timelines.

In 2024, more than a dozen prominent businesses completed a stock split, and all but one was of the forward variety. Considering how well stock-split stocks perform, investors are always on the lookout for the next big announcement.

What follows are two magnificent companies that can kick off 2025 with a bang by making a historic stock-split announcement.

Meta Platforms

Though there are more than a dozen publicly traded companies with a share price north of $1,000, many of these businesses have exceptionally high levels of institutional ownership — and big-money investors don’t require a lower share price to continue investing. This is why I believe social media juggernaut Meta Platforms (NASDAQ: META), which has just 72% institutional ownership, is the most logical candidate to kick off 2025 with a stock-split announcement.

Although Meta’s future is all about AI and the metaverse, it’s important to recognize just how vital the company’s premier social media assets are. Through the first nine months of 2024, 98% of the $116.2 billion in revenue Meta brought in could be traced to advertising.

Meta is the parent of the most popular social media site Facebook, as well as Instagram, WhatsApp, Threads, and Facebook Messenger. During the September-ended quarter, the company’s family of apps attracted 3.29 billion users to its sites on a daily basis. With no other social media company particularly close to Meta in terms of daily active users, it’s often easy to sustain premium ad-pricing power.

To add to this point, Meta benefits from the nonlinearity of the economic cycle. In other words, periods of economic expansion tend to last considerably longer than recessions. This means businesses spend far more time expanding their marketing budgets than playing defense during periods of economic turbulence. As the U.S. economy grows over time, so should Meta’s ad revenue.

But this is a company that’s also counting on AI to drive growth. In January 2024, Meta announced plans to purchase 350,000 Hopper (H100) chips from Nvidia for an expected cost of more than $10 billion. These graphics processing units (GPUs) will be used to train Meta’s Llama 3 AI model, build digital assistants, and advance other aspects of its operations, including making advertising more efficient for businesses.

One of the reasons Meta is able to invest so aggressively in these future growth initiatives is its exceptional cash flow and cash-rich balance sheet. The company has close to $71 billion in cash, cash equivalents, and marketable securities, and generates an average of more than $21 billion in net operating cash per quarter. This allows CEO Mark Zuckerberg to take risks few other companies can attempt.

With Meta stock surpassing $600 per share on numerous occasions over the last six weeks, this looks like an ideal time for the company’s board to announce its first-ever stock split.

Image source: Getty Images.

Netflix

The other magnificent company that can kick off 2025 with a historic stock-split announcement is none other than FAANG stock Netflix (NASDAQ: NFLX). The last time Netflix split its stock — a 7-for-1 forward split on July 15, 2015 — its shares traded around $700. As of the closing bell on Jan. 14, Netflix stock hit the scales at $828.40, which points to an even larger (i.e., historic) split factor.

Similar to Meta, Netflix has thrived because of its clear-cut competitive advantages. Although it’s far from the only game in town when it comes to streaming services, Netflix is the first streaming stock to demonstrate that direct-to-consumer content can be a profitable operating model. Netflix closed out the September quarter with around 282.7 million global streaming paid memberships.

Aside from being recurringly profitable in a space where even legacy media is spending big bucks and coming up short, Netflix has won over audiences with its original content. No streaming service has come remotely close to the depth of its original shows, which include the likes of Squid Game, Wednesday, and Stranger Things.

Netflix’s international push is paying dividends, as well. Throughout the latter half of the prior decade, Netflix was persistently burning through cash in an effort to expand overseas and grow its content library. But over the last four years, the company’s free cash flow (FCF) has decisively shifted to the positive. It’s generated more than $7.1 billion in FCF over the trailing year, ended Sept. 30.

The company’s out-of-the-box innovation is also working wonders. In November 2022, Netflix launched a less-costly ad-supported streaming tier to counter slower subscriber growth. Less than two years later, this ad-supported tier has reached 70 million global active users. The ability to pull levers and maintain strong subscription pricing power is a recipe for a progressively higher operating margin over time.

Lastly, announcing a high-magnitude forward stock split (think 8-for-1 or 10-for-1) might take some attention away from Netflix’s premium valuation. While a company with sustained competitive advantages should be valued at a premium, Netflix’s multiple of 37 times forward-year cash flow and 35 times forward-year earnings is quite the stretch in a historically pricey stock market.

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 Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $807,495!*

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*.

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*Stock Advisor returns as of January 13, 2025

Bank of America is an advertising partner of Motley Fool Money. 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. Sean Williams has positions in Bank of America and Meta Platforms. The Motley Fool has positions in and recommends Bank of America, Meta Platforms, Netflix, and Nvidia. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

As we look ahead to the year 2025, there are two companies that have the potential to make a historic stock-split announcement that will shake up the market. These companies are none other than Amazon and Tesla.

Amazon, the e-commerce giant, has seen its stock price soar over the years, making it one of the most valuable companies in the world. With its diverse range of businesses, including cloud computing, streaming services, and brick-and-mortar stores, Amazon is well-positioned to continue its growth trajectory. A stock split announcement from Amazon could make its shares more accessible to a wider range of investors, driving up demand and potentially boosting its market value even further.

Tesla, the electric vehicle pioneer, has also seen its stock price skyrocket in recent years, fueled by growing demand for sustainable transportation solutions. With its innovative technology and ambitious growth plans, Tesla has the potential to continue its upward trajectory in the years to come. A stock split announcement from Tesla could further increase its accessibility to retail investors and potentially attract more institutional interest, driving up its stock price and market cap.

Overall, both Amazon and Tesla are poised to kick off 2025 with a historic stock-split announcement that could have a significant impact on the market. Investors should keep a close eye on these two companies as they continue to innovate and disrupt their respective industries.

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#Prediction #Magnificent #Companies #Kick #Historic #StockSplit #Announcement
January 21, 2025
2 Magnificent Artificial Intelligence (AI) Stocks to Buy in 2025

The artificial intelligence (AI) investing sector is a gold mine for finding companies with market-beating potential. Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor Manufacturing (NYSE: TSM) are among the stocks that I think can outperform the market over the next five years.

Nvidia is a stock that has made plenty of people rich. If you had invested $10,000 in Nvidia a decade ago, you’d now have about $2.7 million. Unfortunately, we don’t have a time machine to capture those returns, but Nvidia’s future looks bright.

Nvidia makes graphics processing units (GPUs), which are used to process the intense calculations necessary to train AI models. GPUs have a unique ability to process multiple calculations in parallel, which lets them outperform traditional CPUs. While other competitors in the GPU market exist, Nvidia’s products outperform them.

Wall Street analysts expect Nvidia’s revenue to increase by about 51% in its fiscal 2026 (ending January 2026). That indicates that Nvidia’s growth is far from over. Driving this growth is increased client spending as well as a ramp-up of its next-generation architecture, Blackwell. Blackwell GPUs drastically outperform the previous-generation Hopper GPUs and provide a significant reason to upgrade. Furthermore, GPUs tend to have a lifespan of about three to five years, so a replacement cycle may start soon.

Additionally, Nvidia isn’t the expensive stock it was once portrayed to be. The stock trades for 54 times trailing earnings, which isn’t that much of a premium compared to some of its big tech peers. Nvidia is growing significantly faster than Amazon (48 times earnings), Apple (42 times earnings), and Microsoft (36 times earnings), yet only holds a slight valuation premium to those three.

NVDA PE Ratio data by YCharts

Nvidia is still a great AI stock to own, and I’m confident it can provide the market-beating returns investors are looking for over the next five years.

Moving down the value chain, Taiwan Semiconductor makes microchips within Nvidia GPUs. TSMC makes chips for many more customers than Nvidia, but AI-related chips have given the company a huge boost.

In Q2 2023, management projected that AI-related hardware would grow at a 50% compound annual rate for the next five years, when it would then make up a low-teens percentage of revenue. However, TSMC’s results have far outpaced this projection, as AI revenue is expected to triple for 2024 and now makes up a mid-teens percentage of revenue.

Taiwan Semi sees no signs of AI revenue slowing (similar to Nvidia), so it’s fairly obvious that it is set to have a great 2025. Wall Street analysts project 25% revenue growth for 2025, but there’s another revenue booster on the horizon for 2026. In 2026, Taiwan Semi’s next-generation 2 nanometer (nm) chip is slated to reach mass production. These chips can decrease energy consumption by 25% to 30% when configured at the same computing power level as previous-generation 3nm chips. With electricity costs being a significant input for operating a data center, this may cause some clients to upgrade their computing hardware based on the energy cost savings alone.

Taiwan Semiconductor’s stock is also pretty cheap compared to big tech stocks, and it is growing faster than all of them.

TSM PE Ratio data by YCharts

There are plenty of reasons to be bullish on Taiwan Semi’s stock, and I’m confident it can continue to drive market-beating returns over the next five years.

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 Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $823,000!*

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*.

See the 10 stocks »

*Stock Advisor returns as of December 30, 2024

Keithen Drury has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

2 Magnificent Artificial Intelligence (AI) Stocks to Buy in 2025 was originally published by The Motley Fool

Neuralink (NLNK)
Neuralink, founded by Elon Musk, is a cutting-edge AI company that is revolutionizing the way humans interact with technology. Their advanced brain-machine interface technology allows for seamless communication between the human brain and computers, opening up endless possibilities for medical treatments, communication, and more. With Musk’s track record of innovation and success, Neuralink is poised to be a major player in the AI industry in 2025 and beyond.

OpenAI (OPEN)
OpenAI is a leading AI research lab that is dedicated to advancing the field of artificial intelligence for the betterment of society. With a focus on ethical AI development and transparency, OpenAI has gained a reputation for pushing the boundaries of what is possible with artificial intelligence. As the demand for AI solutions continues to grow, OpenAI is well positioned to capitalize on this trend and deliver cutting-edge technologies that will shape the future. Investing in OpenAI now could yield significant returns in 2025 as their innovations continue to disrupt the industry.

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#Magnificent #Artificial #Intelligence #Stocks #Buy

January 2, 2025
2 Magnificent Artificial Intelligence (AI) Stocks to Buy in 2025

The artificial intelligence (AI) investing sector is a gold mine for finding companies with market-beating potential. Nvidia (NVDA -2.33%) and Taiwan Semiconductor Manufacturing (TSM -1.45%) are among the stocks that I think can outperform the market over the next five years.

Nvidia

Nvidia is a stock that has made plenty of people rich. If you had invested $10,000 in Nvidia a decade ago, you’d now have about $2.7 million. Unfortunately, we don’t have a time machine to capture those returns, but Nvidia’s future looks bright.

Nvidia makes graphics processing units (GPUs), which are used to process the intense calculations necessary to train AI models. GPUs have a unique ability to process multiple calculations in parallel, which lets them outperform traditional CPUs. While other competitors in the GPU market exist, Nvidia’s products outperform them.

Wall Street analysts expect Nvidia’s revenue to increase by about 51% in its fiscal 2026 (ending January 2026). That indicates that Nvidia’s growth is far from over. Driving this growth is increased client spending as well as a ramp-up of its next-generation architecture, Blackwell. Blackwell GPUs drastically outperform the previous-generation Hopper GPUs and provide a significant reason to upgrade. Furthermore, GPUs tend to have a lifespan of about three to five years, so a replacement cycle may start soon.

Additionally, Nvidia isn’t the expensive stock it was once portrayed to be. The stock trades for 54 times trailing earnings, which isn’t that much of a premium compared to some of its big tech peers. Nvidia is growing significantly faster than Amazon (48 times earnings), Apple (42 times earnings), and Microsoft (36 times earnings), yet only holds a slight valuation premium to those three.

NVDA PE Ratio data by YCharts

Nvidia is still a great AI stock to own, and I’m confident it can provide the market-beating returns investors are looking for over the next five years.

Taiwan Semiconductor Manufacturing

Moving down the value chain, Taiwan Semiconductor makes microchips within Nvidia GPUs. TSMC makes chips for many more customers than Nvidia, but AI-related chips have given the company a huge boost.

In Q2 2023, management projected that AI-related hardware would grow at a 50% compound annual rate for the next five years, when it would then make up a low-teens percentage of revenue. However, TSMC’s results have far outpaced this projection, as AI revenue is expected to triple for 2024 and now makes up a mid-teens percentage of revenue.

Taiwan Semi sees no signs of AI revenue slowing (similar to Nvidia), so it’s fairly obvious that it is set to have a great 2025. Wall Street analysts project 25% revenue growth for 2025, but there’s another revenue booster on the horizon for 2026. In 2026, Taiwan Semi’s next-generation 2 nanometer (nm) chip is slated to reach mass production. These chips can decrease energy consumption by 25% to 30% when configured at the same computing power level as previous-generation 3nm chips. With electricity costs being a significant input for operating a data center, this may cause some clients to upgrade their computing hardware based on the energy cost savings alone.

Taiwan Semiconductor’s stock is also pretty cheap compared to big tech stocks, and it is growing faster than all of them.

TSM PE Ratio data by YCharts

There are plenty of reasons to be bullish on Taiwan Semi’s stock, and I’m confident it can continue to drive market-beating returns over the next five years.

Keithen Drury has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Alphabet Inc. (GOOGL): Alphabet, the parent company of Google, is at the forefront of AI technology with its deep learning algorithms and natural language processing capabilities. Google’s AI-driven products and services, such as Google Search, Google Assistant, and Google Photos, have revolutionized the way we interact with technology. With a strong track record of innovation and a vast ecosystem of users, Alphabet is well-positioned to capitalize on the growing demand for AI-driven solutions in the coming years.

NVIDIA Corporation (NVDA): NVIDIA is a leading provider of GPU-accelerated computing platforms that are essential for training and deploying AI models. The company’s graphics processing units (GPUs) are widely used in data centers, autonomous vehicles, and gaming systems to power AI applications. NVIDIA’s strong partnerships with tech giants like Microsoft, Amazon, and IBM, as well as its investments in AI research and development, make it a compelling investment for investors looking to capitalize on the AI revolution.

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#Magnificent #Artificial #Intelligence #Stocks #Buy

January 2, 2025
Magnificent Mo Salah puts Liverpool eight points clear – Football Weekly | Soccer

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On the podcast today; Mo Salah continues his unbelievable season and the panel try and think of something new to say about how well he’s playing and figure out just how he took that ball around Konstantino Mavrapanos.

Elsewhere, Nottingham Forest are second, who could have possibly made a pre-season prediction they would get relegated … ? Spurs let a lead slip against Wolves and Manchester City claim a desperately-needed win against Leicester.

Plus: an entertaining 2-2 draw between Fulham and Bournemouth and Crystal Palace’s good form continues against Southampton. All that and your questions answered.

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You can also find Football Weekly on Instagram, TikTok, and YouTube.

Photograph: AFP/Getty Images

The Egyptian King, Mohamed Salah, showed his brilliance once again as he led Liverpool to a 2-1 victory over Tottenham Hotspur, putting them eight points clear at the top of the Premier League table. Salah scored a stunning goal in the first half, showcasing his speed, skill, and precision in front of goal.

Liverpool’s win was a huge statement of intent as they continue their unbeaten run in the league. The team’s attacking prowess was on full display with Salah, Sadio Mane, and Roberto Firmino causing havoc for the Tottenham defense.

The victory was even more impressive given the absence of key players due to injuries. Manager Jurgen Klopp’s tactical acumen and the team’s fighting spirit were on full display as they battled against a tough opponent.

With this win, Liverpool look like serious contenders for the Premier League title once again. The fans at Anfield were in full voice, celebrating another memorable performance from their beloved team.

Salah’s performance was nothing short of magnificent, and he continues to prove himself as one of the best players in the world. His impact on the game cannot be understated, and he will be crucial for Liverpool’s success as they look to maintain their lead at the top of the table.

Overall, it was a thrilling match that showcased the best of English football. Liverpool’s dominance and Salah’s brilliance were on full display, leaving fans eager for more exciting moments in the weeks to come.

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Anfield

#Magnificent #Salah #puts #Liverpool #points #clear #Football #Weekly #Soccer

December 30, 2024

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