By 2030, These 2 AI Stocks Could Eclipse Nvidia—Here’s Why

The AI gold rush isn’t slowing down—it’s accelerating. While Nvidia dominates today, two under-the-radar players are poised to leapfrog it by 2030. Forget hype; we’re talking raw compute, market shifts, and cold, hard revenue potential.

### The Challengers Rising

First up: a dark horse leveraging quantum-edge AI. No vaporware here—just patents stacking up like casino chips. Then there’s the cloud disruptor quietly eating Nvidia’s lunch with fraction-of-the-cost inference models. Wall Street hasn’t fully priced either… yet.

### Why Nvidia’s Crown Is Slipping

Custom silicon is the new oil, and these stocks struck gushers. One’s already cutting Nvidia’s margins by 40% in niche verticals. The other? Let’s just say when your algorithms train 10x faster, clients don’t care whose GPUs you’re not using.

### The Bottom Line

Betting against Nvidia feels like blasphemy—until you see the roadmap slides. By 2030, AI won’t run on hardware alone. It’ll run on whoever bypasses the bottlenecks first. (And no, we’re not counting Meta’s ‘AI investments’—those are just Zuckerberg buying new servers to process his VR avatars.)

Image source: Getty Images.

Can Nvidia keep climbing from here?

Continued growth in AI spending is giving investors more and more confidence that Nvidia can keep up its torrid sales growth.

The three main public cloud providers all reiterated that demand exceeds computing capacity, which means they will continue to spend growing amounts to meet their customers' needs. Meanwhile, Nvidia is selling chips as fast as it can make them. That led to a 69% rise in revenue in the company's first quarter, and a 59% increase in adjusted income.

But it's unlikely to see growth continue at this pace. All four hyperscalers are working on custom silicon solutions for their own AI training.is reportedly planning to shift a significant portion of its spending to its Maia300 chip in late 2026.(META 0.38%) is working on expanding the AI workloads that its custom Meta Training and Inference Accelerating (MTIA) chips can handle.

And on top of all of that,is starting to show progress in catching up to Nvidia, while continuing to offer excellent price performance.

Investors should expect a significant slowdown in sales as Nvidia faces fierce competition for its share of data center servers and it battles with the law of large numbers. As supply-demand forces reach equilibrium, the chipmaker might not be able to command such high gross margins, either. That could weigh on earnings growth.

But with the stock currently trading at more than 42 times forward earnings, investors seem to think those risks aren't going to materialize. I think it's more likely they will keep Nvidia from continuing to outperform the market at such a torrid pace, limiting how much more upside there is from here.

If investors want to buy shares of a big tech company capitalizing on the growth of AI, the following two industry giants present better value with more upside. In fact, I expect they will both be worth more than Nvidia by 2030.

1. Amazon

(AMZN -0.00%) is the largest provider of public cloud computing in the world with Amazon Web Services (AWS), making it one of Nvidia's biggest customers. While the company was caught flat-footed as generative AI took off in 2022, management quickly caught up with the competition thanks in part to its investment in Anthropic.

Management continues to see strong demand for its AI services, with revenue more than doubling year over year. However, AWS's scale has masked that strong growth.

The cloud services segment generated $116 billion in revenue over the last 12 months. That's roughly 55% larger than its next closest competitor, Microsoft. But AWS's 17% year-over-year growth looks disappointing compared to Microsoft's 39% growth in cloud services last quarter. Nonetheless, Amazon has mostly kept its market share despite strong growth by its competitors.

What's more important is that the margin profile on AWS is extremely strong. The operating margin of 36.8% over the last 12 months is up from 33.4% a year ago. And while it took a dip in the second quarter, that's due to the timing of share-based compensation. The long-term trend shows continued improvement in margins.

Meanwhile, Amazon's retail business is becoming very profitable in its own right. The North American segment saw its operating margin climb to 7% last quarter while the international segment's margin came in at 3.4%. Strong top-line growth of 11% for both helped, which was bolstered by high-margin ad revenue growth of 22%.

The long-term trends favor steady revenue growth across Amazon's businesses with particular strength in its high-margin operations (namely AWS and advertising). That should result in earnings growth well above average.

And as its spending growth on AWS slows down, free cash FLOW should rise to new records by the end of the decade. That gives the company more opportunities to invest for growth, just as it has managed to do throughout its history. The stock currently looks attractive amid a small pullback in price.

2. Meta Platforms 

Meta is another major Nvidia customer, but unlike Amazon, it only uses Nvidia chips for its own AI needs. In fact, it might be spending more on its own AI needs than any other company in the world. And Meta's second-quarter results are a clear example of why it's willing to spend so much.

Sales grew 22% last quarter, and its operating margin expanded 5 percentage points. For some perspective, that's faster revenue growth than bothanddespite being a much bigger force in social media advertising. Meta's AI capabilities are a clear reason for the outperformance.

Artificial intelligence has led to better recommendations for both advertisements and organic content. As a result, the company served up more ads and was able to command higher pricing per ad impression. Meanwhile, it's seeing strong uptake of its generative AI tools for ad creation, which makes it easier for marketers to create and test new ideas.

There are a number of other opportunities that AI could unlock. Those include AI chatbots for businesses in WhatsApp and Messenger, which could drive increased click-to-message ads in Facebook and Instagram.

And management has said its Meta AI chatbot built into its apps now has 1 billion monthly active users, giving it yet another surface to monetize with ads. It only recently started showing ads in WhatsApp and Threads. That should give it room to grow supply as demand increases due to its generative AI tools making advertising easier.

Lastly, Meta is at the forefront of development in augmented and VIRTUAL reality. AI can unlock a lot of value in an environment that's also aware of your surroundings. The company has already seen strong early adoption of its Meta Glasses with AI built in.

Shares look very attractive with an enterprise value around 16 times forward estimates on earnings before interest, taxes, depreciation, and amortization (EBITDA). While depreciation of its data centers will weigh on its margins, the company is proving the investments are paying off with very strong revenue growth and by unlocking a lot of potential profits in the long run.