NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.

NVIDIA демонстрирует впечатляющие финансовые показатели, включая TTM ROE на уровне 103.82%, что значительно выше медианного значения по отрасли. Это свидетельствует о высокой рентабельности капитала, что положительно сказывается на оценке компании. Однако мультипликаторы, такие как P/E на уровне 47.85 и P/S на уровне 25.31, показывают, что компания значительно переоценена по сравнению с медианой отрасли. Долговая нагрузка остается низкой: debt/equity на уровне 0.06, что является положительным фактором. Тем не менее, отсутствие дивидендов может оттолкнуть некоторых инвесторов, хотя текущая ликвидность компании остается на высоком уровне с коэффициентом текущей ликвидности 4.47. В целом, несмотря на сильные финансовые результаты, высокая оценка по мультипликаторам и отсутствие дивидендов создают риски для инвесторов, что должно быть учтено при формировании целевой цены.

NVIDIA Corporation

Key Points
Microsoft and Amazon operate the two largest cloud computing services.
AI adoption hasn't reached 20% yet.
The "Magnificent Seven" is a group of stocks that are often pointed to as market leaders. Currently, all seven are among the world's top-10 largest companies. That's an impressive spot to be in, and the group is made up of:
All seven of these stocks have delivered strong investor returns over the past decade, but the question is, which ones will be the best to own going forward? I think two members have been overlooked in the Magnificent Seven, and they look like screaming buys right now.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Some of these stocks get huge headlines daily
It's hard to call the world's largest company by market cap overlooked, so Nvidia is out for my list. Apple products are front of mind for many consumers, and it's a well-publicized company, so it's also eliminated. Furthermore, Apple's artificial intelligence (AI) strategy has been relatively weak, so I'd hesitate to call it an AI company. Alphabet has seen its shares rally massively over the past year thanks to its comeback in the generative AI world, and Gemini is among the top options available, so I wouldn't consider it overlooked, either.
Meta Platforms and Tesla are both trying to position themselves as AI-first companies, although their adoption of AI shows up in different ways. Tesla is integrating AI in its vehicles through autonomous driving and also has other exciting offerings in the works, like its Optimus robot. Meta is working on several AI products, as well as integrating the technology into its social media platforms. Both of these are well-known in the AI realm and don't qualify as "overlooked."
That leaves Microsoft and Amazon as the last two, and I think AI investors need to take another look at them.
Amazon and Microsoft are making money from AI right now
While Amazon and Microsoft are both integrating AI into their everyday inner workings, the real money maker is cloud computing. Amazon and Microsoft are in first and second place in terms of cloud computing market share, and each is seeing huge growth in this sector. During the fourth quarter, Microsoft Azure's revenue rose 39% year over year. Amazon Web Services (AWS) didn't have as fast a growth rate, rising 24%. However, that growth rate was its best quarter in over three years.
These businesses are cash cows, and with insatiable AI demand, both Microsoft and Amazon are understandably spending billions of dollars on data centers to meet that demand. Once the money has been spent to bring the new computing infrastructure online, each company will be able to generate high-margin revenue that boosts profitability. While each company has a different primary business they're known for, their cloud computing segments are a good enough reason to buy their stocks.
On another note, both stocks trade at a discount to recent levels.
Since 2024, these two have consistently traded with a forward price-to-earnings ratio -- based on estimates -- in the low-30s. Now, they trade at a decent discount to those levels. If you've been waiting to buy these two, there has seldom been a better opportunity over the past few years to scoop up these stocks.
Businesses haven't even scratched the surface of what's possible with AI. According to research done by The Motley Fool, less than 20% of businesses currently use AI. That number should skyrocket over the next few years and drive demand for cloud computing services from these two. Right now is a golden buying opportunity, and investors shouldn't squander it.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, 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 Amazon 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla and is short shares of Apple. 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.

The Most Overlooked Artificial Intelligence (AI) Stocks in the "Magnificent Seven" for 2026

Key Points
Recent filings offer us a glimpse into the latest trades of some of the world’s top investors.
Many of these investing giants have been piling into AI stocks.
There are many paths to a billion-dollar portfolio, meaning billionaires don't always agree when it comes to investment opportunities. Even if it's clear that the area of artificial intelligence (AI) has a bright future, billionaire hedge fund managers may choose different paths to an AI win. One may pile into Nvidia (NASDAQ: NVDA), for example, while another sells shares of this AI chip giant.
But, from time to time, these investing experts see eye to eye and make similar moves. And this is exactly what happened in the fourth quarter of last year. Billionaires David Tepper of Appaloosa Management and Michael Platt of Bluecrest Capital Management each sold shares of Nvidia and bought an AI stock that's soared 40,000% since its initial public offering. Let's check out the details.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
A look at 13F filings
So, first, a quick note on how we know about these billionaires' moves. On a quarterly basis, managers of more than $100 million in stocks must report their activity to the Securities and Exchange Commission on Form 13F. These forms are available for the public to see, so we may get a glimpse into the latest moves of these investing experts.
Tepper and Platt, like many other billionaires, have been investing in AI stocks; Tepper may be the most aggressive here, though, as his top five holdings, from Alibaba to Meta Platforms, are heavily involved in AI. Platt's biggest stock positions are in finance and energy. Both billionaires made two similar moves in the latest quarter, however...
Tepper, who oversees $6.9 billion, cut his position in Nvidia by 10%, and it now makes up 4.6% of his portfolio. He's held the stock since the first quarter of 2023.
Platt, who manages $3.3 billion, slashed Nvidia by 96%, and the stock now makes up only 0.2% of his portfolio. He's held Nvidia shares since the second quarter of last year.
Tepper increased his position in Micron Technology (NASDAQ: MU) by 200%, and it now accounts for 6.2% of his portfolio. He's held the stock since the second quarter of 2023.
Platt opened a new position in Micron, and it represents about 0.1% of his portfolio.
A better growth buy
As always with 13F filings, we don't know the exact reason behind the investors' moves. But these decisions by Tepper and Platt suggest the billionaires believe Micron will deliver growth as the next stages of the AI story unfold -- and potentially represent a better growth buy than Nvidia. It's also important to note that these moves took place a few months ago, and the billionaires' views or strategies may have changed in more recent times.
Still, it's fair to say that Micron, a leader in the AI memory and storage space, could deliver significant earnings growth in the coming quarters. Micron's products may be popular among AI customers during this next stage of AI growth, as AI is more regularly applied to real-world problems. To make this happen, models go through inference or a "thinking" process that allows them to develop answers and solutions. And to do this, they will need a lot of memory.
Micron's record earnings
In the most recent period, Micron offered us a preview of this trend, with revenue reaching record levels, and the company expects more records in the next reporting period. Micron says AI demand is driving this momentum.
So, should you follow billionaires Tepper and Platt and opt for Micron shares over Nvidia? This depends on your investment strategy and current AI holdings. If you've already held Nvidia stock for a while and are looking for another high-potential stock, you might favor buying Micron right now. The stock trades at only 11x forward earnings estimates, compared with 20x or higher for many other AI stocks.
That said, like the billionaires, you might want to hold onto some Nvidia shares as the AI giant is likely to keep delivering significant growth as this AI boom marches on.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, 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 Micron Technology 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Micron Technology, and Nvidia. The Motley Fool recommends Alibaba Group. 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.

Billionaires David Tepper and Michael Platt Sold Nvidia Shares and Bought This AI Stock That's Climbed 40,000% Since its IPO.

Key Points
Palantir's software platform is a better long-term business model.
Nvidia is capitalizing on massive AI spending.
Nvidia (NASDAQ: NVDA) and Palantir (NASDAQ: PLTR) have been top artificial intelligence (AI) investment options over the past few years. These two have partnered together to optimize their offerings and represent two different investment approaches: hardware (Nvidia) and software (Palantir).
There are merits to investing in both, but which one is the better buy now?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Software is a more sustainable business model
Palantir sells AI-powered data analytics software. This software has been deployed in several applications, including national defense, intelligence, as well as commercial applications. Essentially, a client that has massive data inflows can deploy Palantir's software and receive real-time actionable insights on what the next best step is. It also has a platform to automate some of this decision-making, boosting a client's overall effectiveness.
Nvidia makes graphics processing units (GPUs). GPUs aren't just intended for processing gaming graphics (although that was their original use case, thus the name). GPUs can process multiple calculations in parallel, making them the perfect choice for any computing need that requires a lot of processing power. AI perfectly suits this description, and Nvidia's products have been widely deployed in this sector.
But which business is better to be in?
Palantir works on a subscription model, which means its clients must pay a monthly or annual subscription fee to continue using their platform. If Palantir's software stays relevant, this can create an endless revenue stream that isn't subject to the ups and downs of the general economy.
Nvidia isn't in as nice a situation. It's currently thriving thanks to huge AI spending, something that won't last forever. Once AI computing capacity has been built out, demand for its products will fall. Still, GPUs burn out after a few years of usage, so Nvidia will still have a huge business replacing these products once they burn out. But it isn't as consistent and predictable as Palantir's software business.
All things being equal, Palantir's software business is a far better one to invest in than Nvidia's hardware business.
Winner: Palantir
Their growth is about the same
Taking a look at their latest results, Palantir's revenue grew an impressive 70% year over year, while Nvidia's increased by 73%.
While I could say that Nvidia is growing faster and give it a point here, I think that's a bit ridiculous. It's hard to nitpick either company's growth rates, and investors should sit back and be impressed with the stellar growth each company has delivered.
Winner: Tie
Nvidia's stock is far cheaper
Palantir's software business model has earned the stock a huge premium in the market, but the question is whether it's worth it. Palantir's stock trades for an incredible 114 times forward earnings, while Nvidia's trades for a far more reasonable 22.4 times.
Is Palantir's software business worth 5 times more than Nvidia's hardware business? I'd say no. I'd be fine if Palantir traded in the 40 to 50 times forward earnings range, but 114 times forward earnings is just too much. There are several years' worth of strong growth already baked into the stock price, and if it falls short of those expectations, the stock could come crashing down.
Nvidia has relatively few expectations baked into its stock beyond this year. If the AI build-out continues through 2030 like many project, Nvidia's stock still has plenty of room to skyrocket.
Winner: Nvidia
Which is the better stock pick?
With the final score being one to one, with one point given as a tie, it may look like these two are dead even. However, I think investors need to understand just how much growth is already priced in to Palantir's stock. I think this is a prohibitive investing factor, and makes Nvidia the overall better buy. If Palantir's price tag were more reasonable, this decision would be far harder. But for the next few years, I think Nvidia is hands-down the better pick between the two.
Should you buy stock in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, 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 Palantir Technologies 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. 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.

Best Artificial Intelligence (AI) Stock to Buy Now: Nvidia vs. Palantir

Key Points
Investors have become cautious about some AI stocks.
One AI stock not to worry about is Nvidia.
The stock is relatively cheap and has tons of upside.
Artificial intelligence (AI) stocks have taken a bit of a beating in recent months, as investors question the high valuations after a three-year bull market and the true return that all of the AI investment is actually generating.
For some AI stocks, the cautious reaction is spot on, but for others, it is not.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
But what's happening is that some AI stocks that are truly driven by the AI boom and will continue to flourish are being caught up in the sell-off -- and that's actually good news for investors. That means that some great AI stocks can be scooped up at lower and quite reasonable valuations.
The one that I would scoop up first is Nvidia (NASDAQ: NVDA). Some would argue that you could never go wrong adding shares of Nvidia, even at its all-time highs. But now, with the stock price down about 5% since late February to $184 per share, it is a particularly great time.
The bull case for Nvidia
Making the bull case for Nvidia is not hard -- it's the valuation case where the rubber meets the road.
Nvidia is the most dominant player by far in making graphics processing units (GPUs) for computers of all types. But its major focus is on making AI chips for high-performance computers and data centers.
Nvidia's AI chips have a massive 90% market share within the data center market. And with the demand for AI computing only increasing and the proliferation of data centers, Nvidia's chips will be in high demand for years to come.
The growth numbers continue to be staggering, as Nvidia grew revenue 73% and earnings 98% year over year last quarter. Data center revenue made up 91% of the $68 billion in revenue for the fiscal fourth quarter, which ended Jan. 25.
In the first quarter, the company expects revenue to grow another 15% over Q4 to $78 billion. And during its fiscal Q3earnings call officials said the company had some $500 billion in orders to be executed through the end of calendar year 2026, so it's just a massive amount of revenue that is continuing to pour in.
As I said, its not a question of making the bull case, but the valuation case, and Nvidia wins there, too.
The valuation case for Nvidia
The stock trades at 37 times earnings, but its forward P/E, based on earnings projections for the next 12 months, is just 22 -- very reasonable if not downright cheap. Analysts expect Nvidia to increase revenue by 70% and earnings by 73% this fiscal year.
That valuation truly makes Nvidia a slam dunk buy right now. Some 93% of Wall Street analysts agree. The stock has a median price target of $265 per share, which would suggest a 43% return over the next 12 months.
If you had $1,000 to invest in an AI stock, that could buy you around five shares of Nvidia. There probably aren't too many better places to park your money.
Should you buy stock 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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.

Got $1,000? Here's the Artificial Intelligence (AI) Stock I'd Buy First

Key Points
Microsoft has rarely reached this valuation level in the past decade.
Nvidia continues to defy expectations as AI chip demand surges.
A new partnership for The Trade Desk could boost revenue.
Even as the stock market seesaws with uncertainty, there are a handful of screaming values that I think investors should consider scooping up today. I've got three of them that are trading at deep discounts to where they should be, and it seems that it's only a matter of time before the rest of the market catches on and sends these three higher.
At the top of my investment list are Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and The Trade Desk (NASDAQ: TTD). All three of these stocks are well off their all-time highs, but if investors trusted the direction they are heading, they would be much higher.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Microsoft
Microsoft is thriving in the AI build-out. It has become a facilitator, and instead of spending billions of dollars training a generative AI model, it's using that capital to build out computing infrastructure that it can rent out to AI developers who are. This is the primary reason to invest in Microsoft, and its cloud computing business unit, Azure, which powers these workloads, is doing great.
During the second quarter of fiscal year 2026 (ended Dec. 31), Azure's revenue rose by 39% year over year. For all of the money that Microsoft is spending on AI computing hardware, that represents a great return on investment, but it's not done yet. Microsoft has a $625 billion backlog that it's still churning through, so there is a massive amount of contracted business already on the books waiting to be used up.
Despite this, Microsoft's stock trades at a historically low valuation. I'm using the operating price-to-earnings ratio because it ignores the effects of investment gains (like Microsoft's OpenAI investment), and it gives investors a bit more clarity into the historical valuation picture without the effects of one-time events.
Microsoft's valuation today is near the low end of where it has traded over the past decade, making today's price tag a screaming deal.
Nvidia
If you thought Microsoft's stock was cheap, wait until you see Nvidia's. Nvidia makes graphics processing units (GPUs), which have been heavily utilized in the AI build-out. This has caused Nvidia to soar to become the world's largest company, but it's far from being done.
During Q4, its revenue rose 73%, and management gave guidance for 77% growth in Q1. Nvidia believes that global data center capital expenditures will rise to $3 trillion to $4 trillion by 2030, which is a huge uptick from today's already large levels.
So, the likelihood is that we're a long way away from finding our spending ceiling on AI computing hardware, and Nvidia is set to profit from this build-out trend for many years. Despite that, its stock trades for a cheap price tag of 22.1 times forward earnings, nearly the same as the S&P 500, which trades for 21.7.
This valuation indicates that Nvidia's growth this year will be impressive, but could slow down after that. However, projections indicate that this isn't the case, so investors should use this opportunity to buy Nvidia stock.
The Trade Desk
Last is The Trade Desk, which is much smaller than Nvidia and Microsoft. The Trade Desk operates a buy-side ad platform that pairs advertisers with ideal spots to advertise on the internet. This has been a successful business model, but its growth has slowed recently.
However, there could be a new catalyst that could kick-start The Trade Desk's growth. It was reportedly in talks with OpenAI, the makers of ChatGPT, on how to implement ads on its platform. This could be a real game changer for the stock and cause its growth rate to accelerate. If it does, The Trade Desk's stock will be primed to make a huge run, as it currently trades at a dirt cheap 14 times forward earnings.
That's a huge discount to the market despite past success and market-matching growth. As a result, I think it looks like a compelling investment opportunity.
Should you buy stock in Microsoft right now?
Before you buy stock in Microsoft, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Microsoft wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Keithen Drury has positions in Microsoft, Nvidia, and The Trade Desk. The Motley Fool has positions in and recommends Microsoft, Nvidia, and The Trade Desk. 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.

3 Stocks Investors Should Buy Hand Over Fist

Key Points
Nvidia’s GPUs continue to enjoy strong demand, leading to record fiscal fourth-quarter revenue of $68.1 billion.
The company has expanded into artificial intelligence (AI) networking, with this area seeing 263% year-over-year sales growth in Q4 for fiscal year 2026.
Nvidia has invested in businesses across the AI industry, including Nokia and Intel.
One of the most prominent artificial intelligence (AI) stocks has been Nvidia (NASDAQ: NVDA). The company posted blowout earnings when it announced results for its fourth quarter results for fiscal year 2026 (ended Jan. 25).
Even so, it wasn't enough for Wall Street, as Nvidia shares dropped after the earnings announcement. The reaction belies the company's key role in the AI age.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Nvidia has proven itself a critical part of the AI boom in the first half of this decade. Here's why it's positioned to persist as a dominant industry force, which can make it one of the most important stocks to own for the remainder of the 2020s.
Nvidia's chip leadership
Nvidia made a name for itself with the creation of the graphics processing unit (GPU), enabling AI systems to crunch massive amounts of data with speed and efficiency. Although competition is intense, its leadership role in AI semiconductor chips remains hard to beat.
For example, in February, the company won a multiyear partnership with Meta Platforms, where it will provide millions of GPUs to the Facebook and Instagram parent. Meta and other tech conglomerates are spending big on AI computing capacity. In 2025, AI companies spent a whopping $1 trillion to build out tech infrastructure for artificial intelligence.
In addition, nations around the world are buying Nvidia GPUs as governments seek to build sovereign AI. South Korea, Germany, and Saudi Arabia are among the countries scooping up the company's products.
Thanks to these customers, Nvidia's data center division enjoyed record Q4 revenue of $62.3 billion, representing an impressive 75% jump up from the previous year. As a result, Q4 total sales hit an all-time high of $68.1 billion.
These impressive Q4 figures are just the start. Nvidia forecast fiscal first-quarter revenue of $78 billion, which represents a substantial increase from the prior year's $44.1 billion.
Nvidia sees years of sales growth ahead as the entire technology industry transitions to the advanced semiconductor chips needed for AI adoption. The existing computing tech was built on CPUs, but this older architecture must adopt GPUs used in accelerated computing for the horsepower needed in the AI era.
Nvidia's expansion beyond chips
Although its GPUs are generating massive revenue growth, the company seeks to evolve beyond its role as a chipmaker. By doing so, it diversifies its revenue streams while solidifying its position as one of the world's most important AI companies.
One of these areas is data center networking. AI systems process so much data that require fast network connections. Nvidia provides products for this, which are seeing strong adoption. In Q4, its networking sales rose a jaw-dropping 263% year over year to $11 billion.
The market for AI-related infrastructure is forecast to see tremendous growth over the next decade. Estimates predict industry expansion from $59 billion in 2025 to nearly $500 billion by 2034, providing a tailwind for Nvidia for the remainder of the 2020s.
The semiconductor giant is looking beyond data centers as well. It's working with telecommunications businesses to build the next generation of wireless networks, 6G, designed for AI's significant data bandwidth needs. The new 6G solution won't be just for mobile phones. It will be used for artificial intelligence to wirelessly manage robots, self-driving cars, and other physical AI systems.
As part of this effort, Nvidia agreed to a $1 billion equity investment in Nokia. Together, they are already testing 6G networks.
Nokia represents one of the many investments Nvidia has made to strengthen its position in the AI ecosystem. The chipmaker also invested in Uber Technologies to deliver a fleet of AI-powered self-driving vehicles for Uber's ride-hailing service. Intel is another example, partnering with Nvidia to deliver AI to PCs.
Nvidia's future solutions
Nvidia's influence ranges far. And it's continually pushing farther, as seen in its entry into the nascent field of quantum computing.
Last October, the company introduced its NVQLink architecture, which connects GPUs to quantum computers. Quantum machines can complete complex computations in minutes that would take centuries with today's supercomputers. GPUs help with correcting calculation errors in real time.
And the opportunity to buy Nvidia stock has arrived. After Wall Street's reaction to its fiscal Q4 results, the company's forward price-to-earnings (P/E) ratio, which indicates how much investors are willing to pay for a dollar of earnings based on estimates for the next 12 months, has dropped significantly.
With a forward earnings multiple of about 22, Nvidia shares are at an attractive valuation not seen since the Trump administration's tariff announcements last April caused the stock market to crash.
This makes now the time to buy shares in one of the most important AI companies of the past few years, one that looks poised to maintain this importance through the rest of the decade.
Should you buy stock 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Robert Izquierdo has positions in Intel, Meta Platforms, Nvidia, and Uber Technologies. The Motley Fool has positions in and recommends Intel, Meta Platforms, Nvidia, and Uber Technologies. 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.

Why Nvidia Could Remain the Most Important Stock of the 2020s

Key Points
Coca-Cola, ExxonMobil, and AbbVie are blue chip stocks that have provided consistent quarterly payouts.
Realty Income and the JEPQ ETF both offer a monthly payout.
Dividend stocks are a tried-and-true way to maximize your investments and build wealth that leads to a comfortable retirement. These payments, which are a portion of the company's profits, are often made by mature, stable companies and are seen as an incentive to entice new investors into taking a position in the company.
For investors, this provides two benefits. First, you can reinvest your dividend payment into your portfolio, making it grow even faster. The S&P 500 index has had a mean dividend yield of 1.74% over the last 10 years. That may not sound like a lot, but over a decade, it adds up. The index has risen 240% in the last 10 years, but if you account for the reinvested dividends, the S&P 500's total return is 305%.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Or you can use those dividend payments as regular income. Dividends are a favored vehicle for investors who are in retirement because they act as a form of passive income -- meaning that retirees don't need to draw down their retirement accounts as quickly.
There are plenty of different dividend stocks from which to choose, but here are my five favorites right now.
1. Realty Income
Realty Income (NYSE: O) has long been at the top of my list of dividend stocks. First, I like that it's a monthly dividend stock rather than a quarterly one. That's important because getting payments into your account quickly means you can reinvest them sooner. Or, if you are using Realty Income for passive income, it's easy to set up a monthly budget when you have a monthly dividend stock.
Second, Realty Income is dedicated to raising its dividend. The company has paid a monthly dividend for more than 55 years, in which time it's increased its dividend 133 times. The yield currently sits at 5%.
Realty Income is consistent because it's a solid business, built to last. The real estate investment trust owns more than 15,500 properties and rents them to more than 1,700 clients, generating $5.3 billion in annualized rent.
2. ExxonMobil
ExxonMobil (NYSE: XOM) is a massive oil and gas company that offers upstream production, midstream pipelines, and downstream refining and chemicals. It also operates more than 12,000 gas stations in the U.S. under the Exxon and Mobil brands.
The company generates a ton of money. Cash flow from operations totaled $52 billion in 2025, which allowed ExxonMobil to pay out $17.2 billion in dividends and repurchase an additional $20 billion worth of shares. ExxonMobil's dividend yield is a healthy 2.8%.
3. AbbVie
AbbVie (NYSE: ABBV) is my favorite pharmaceutical company for dividend yields. The company is getting a lot of its profits these days from Skyrizi, which was responsible for $5 billion in revenue in the fourth quarter, up 31.9%, and from Rinvoq, which contributed another $2.37 billion, up 28.6%.
Those gains allowed AbbVie to report revenue growth for the quarter, even though the company lost exclusivity for its popular Humira drug. Overall, the company generated $16.6 billion in revenue in the quarter, up 10% year over year. AbbVie's dividend yield is 3%.
4. Coca-Cola
Beverage company Coca-Cola (NYSE: KO) is a Dividend King, meaning that it's raised its dividend for at least 50 consecutive years. The company shows no sign of slowing, as Coca-Cola's dividend yield is a respectable 2.6%.
Coca-Cola has the biggest market share of carbonated soft drinks in the U.S., but this is much more than a soda company. The Atlanta-based company also manufactures sports drinks, water, tea, lemonade, juices, and coffee.
5. JPMorgan Nasdaq Equity Premium Income ETF
The JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) isn't a stock. In fact, it's not even a traditional dividend ETF. JEPQ, which is managed by a division of JPMorgan Chase, employs a covered-call strategy through equity-linked notes to generate dividends for shareholders. Fund managers sell out-of-the-money call options on stocks in the index, and the proceeds are distributed as a dividend each month.
I love tech stocks, so the JEPQ ETF caught my eye a few months ago. I was looking for a way to draw passive income from tech stocks that typically don't offer a payout at all. The ETF's top holdings include some of my favorite stocks -- Nvidia, Apple, Alphabet, Microsoft, and Amazon. Those stocks offer just a pittance of a dividend, if at all. But JEPQ's covered-call strategy allows it to pay a current yield of 10.6%. That means I'll be keeping the JEPQ in my portfolio for a long time.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, 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 Coca-Cola 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Patrick Sanders has positions in JPMorgan Nasdaq Equity Premium Income ETF and Nvidia. The Motley Fool has positions in and recommends AbbVie, Alphabet, Amazon, JPMorgan Chase, Microsoft, Nvidia, and Realty Income. 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.

My 5 Favorite Dividend Stocks to Buy Right Now

Key Points
Meta Platforms introduced its new AI training and inference chips last week.
Meta collaborated with Broadcom in the effort, with Broadcom saying customers are increasingly turning to specialized XPUs for different workloads over GPUs.
Should the announcements make Nvidia investors nervous?
Nvidia (NASDAQ: NVDA) is known as the king of artificial intelligence (AI), but as the industry migrates from training large language models to inference, will its competitive moat hold up?
Over the past week, even more competitive pressures emerged, with a big custom chip announcement from Meta Platforms (NASDAQ: META) and its chipmaking partner Broadcom (NASDAQ: AVGO).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
As more large customers migrate to custom XPU solutions, should Nvidia investors be worried about the competition?
Meta launches four new chips
On Wednesday, Meta unveiled four new artificial intelligence chips: The MTIA 300, MTIA 400, MTIA 450, and the MTIA 500.
The 300 is optimized for Meta's core ranking & recommendation (R&R) workloads, which were Meta's dominant workload before generative AI. The 400, 450, and 500 are each for different types of inference workloads. The 400 can implement larger generative AI models for traditional R&R applications. The 450 then augments the 400's capabilities by doubling the high-bandwidth memory (HBM) capacity, and the 500 takes the 450's HBM higher by another 50% on top of that.
Meta disclosed that while the 300 is in use now, the 400, 450, and 500 will be rolled out beginning in early 2027 for generative AI inference. Meta also elaborated on its chip design strategy, noting it uses a "modular" approach that enables it to iterate on new chip designs every six months, rather than the typical two-year cadence. Meta believes this is a necessity, given the rapid pace of AI evolution today:
Rather than placing a bet and waiting for a long period of time, we deliberately take an iterative approach: Each MTIA generation builds on the last, using modular chiplets, incorporating the latest AI workload insights and hardware technologies, and deploying on a shorter cadence. This tighter loop keeps our hardware better aligned with evolving models while enabling faster adoption of new technology.
Like other major cloud companies, Meta is using Broadcom to manufacture and package parts of its chips.
Broadcom says XPUs are on the rise versus GPUs
Broadcom counts Meta as one of its five major XPU customers, to which it supplies SerDes components that connect the chip logic to the networking fabric. At the same time, Broadcom also handles packaging and other elements, ensuring these self-designed chips are manufacturable.
Broadcom held its quarterlyearnings calllast week, during which CEO Hock Tan elaborated on the current trend toward XPUs over graphics processing units (GPUs), noting that as AI workloads evolve, chips require greater specialization for each step in the AI training and inference processes:
The one-size-fits-all general-purpose GPU gets you only that far. ... In a GPU, you have a design for dense matrix multiplication. So you do it with software kernels, but it is not as effective as if you hard-coded it in silicon and make those XPUs purposely designed to be much more performing for mixture-of-experts workloads. The same applies for inference. ... And the design starts to depart from what is the traditional standard GPU design. Which is why, as we always indicated before, XPUs will eventually be more the choice simply because it will allow flexibility in making designs that work with particular workloads -- one for training even and one for inference. ... You can tweak your XPUs toward a particular kind of workload LLM that you want. And we are seeing that. We are seeing that road map in all our five customers.
Should Nvidia investors be worried?
As the AI computing industry evolves toward pre-training, post-training, reinforcement learning, and inference for diverse applications, is Nvidia in danger of losing market share? After all, Nvidia did shell out $20 billion for the intellectual property and engineering talent of inference chip start-up Groq late last year. That may indicate that Nvidia sees emerging demand for non-GPU chips as the industry pivots, as Hock Tan described.
That being said, Nvidia investors shouldn't necessarily panic. Even as the inference market is becoming more competitive, Nvidia still has a strong lead in training, and investment in training infrastructure will continue to grow.
Look no further than Meta itself for evidence. Despite unveiling new chips last week, Meta inked a massive, multiyear deal with Nvidia last month to deploy literally millions of Nvidia Blackwell and Rubin chips in its data centers, along with Nvidia central processing units (CPUs), all connected via Nvidia's SpectrumX ethernet switches.
So, even Meta's new chip designs haven't enabled it to stop buying Nvidia infrastructure.
Meta has legacy businesses across Facebook, Instagram, WhatsApp, and its Reality Labs segments, but it is also building its own Llama family of large language models (LLMs). So, Meta may be deploying Nvidia for its LLM efforts and frontier AI research, while the homegrown chips can more efficiently serve its legacy business footprint with optimized solutions.
But the big picture is that AI computing demand is still growing exponentially. That means the emergence of new inference chipmakers won't cause traditional training-focused GPUs to decline; rather, these new types of chips should be incremental and not displace Nvidia GPUs.
In this case, it appears the rising tide of AI compute truly lifts all boats.
Should you buy stock 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Billy Duberstein and/or his clients have positions in Broadcom and Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool recommends Broadcom. 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.

Meta Platforms Just Unveiled Its New AI Chips. Should Nvidia Investors Be Worried?

Key Points
This company benefits from the success of the existing members of the $2 trillion club.
It's poised for strong revenue growth and margin expansion through the end of the decade.
The stock valuation doesn't reflect the growth potential of the company.
The five existing members of the $2 trillion club are all beneficiaries of the growing demand for artificial intelligence (AI). Alphabet, Microsoft, and Amazon have all seen demand for their cloud computing AI services outstrip their ability to build new data centers and stand up servers. Nvidia is the largest graphics processing unit (GPU) supplier to data centers. And Apple has quietly positioned its iPhone and other devices to capitalize on industry advances in AI.
The next member of the $2 trillion club is an important partner to all five of those companies. The massive spending from the hyperscalers, Nvidia's push to more advanced GPUs and central processing units, and Apple's efforts to prepare its devices for the generative AI era all trickle down to this one company: Taiwan Semiconductor Manufacturing (NYSE: TSM).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The stock briefly touched a $2 trillion market cap in late February, but it's since pulled back to just $1.8 trillion. Still, it's up 97% in the past year, as of this writing. I predict it won't be long before it retakes the $2 trillion level and keeps climbing from there.
Powering the most advanced chips
TSMC is the largest contract chip manufacturer in the world, and the gap between it and second place is growing wider. TSMC accounted for almost 70% of all spending by companies such as Nvidia, Apple, and other chip designers in 2025. Second-place Samsung Electronics (OTC: SSNL.F) accounted for just 7% of all spend.
TSMC's market share is poised to keep growing in 2026 and beyond, as it holds a substantial technology lead. Its 2nm process went into mass production at the end of 2025, with all the capacity in its existing facilities supporting the process booked into mid-2027.
To be sure, Samsung is making good progress with its 2nm process, significantly improving the yield of viable chips per silicon wafer. However, yields remain below TSMC's 2nm process. More importantly, Samsung may have some capacity available at its foundries, but it doesn't have the capacity to steal a meaningful workload from TSMC. Furthermore, TSMC's IP library and packaging capabilities are unmatched, creating significant switching costs for anyone considering moving to the smaller competitor.
As a result, TSMC has been able to raise its pricing. It implemented a price hike on its most advanced chipmaking processes at the start of 2026 by 3% to 10%. Reports indicate TSMC plans to raise prices each year through 2029, suggesting very strong pricing power and clear visibility of demand over the next few years.
Indeed, TSMC is investing heavily to meet that demand. Management plans to spend between $52 billion and $56 billion on capital expenditures this year. That's up from $40.9 billion last year. It's spending a significant amount on new facilities in Arizona, which can help mitigate the geopolitical risk of the Taiwan-based company. However, U.S. fabs cost much more to build and operate than Taiwanese fabs, which may be another reason TSMC is planning to raise pricing through 2029 when the last Arizona fab will start volume production.
The path to $2 trillion
With increased spending by Amazon, Microsoft, and Alphabet on data centers and the strong demand for Apple's iPhone seen last quarter, TSMC looks poised for another strong year in 2026. Management guided to 30% full-year revenue growth in U.S. dollar terms, and it expects to see further improvements in gross margin in the first quarter. Through the first two months of the year, revenue is up 30% on an FX-neutral basis, in line with expectations. Note, the U.S. dollar is weaker than it was a year ago.
Management sees those strong results continuing through the end of the decade. It updated its five-year revenue outlook for 2025 through 2029 to a compound annual growth rate of 25% in U.S. dollar terms. A 36% increase in 2025 and expectations for 30% growth in 2026 suggest annualized growth of 20% in 2027 through 2029. It's also worth pointing out that management is historically conservative with its outlooks, which means there could be further upside.
With strong demand for both its 3nm and 2nm processes and planned price hikes, it should be able to achieve high gross margins even as it ramps up its next-generation process. As such, investors can expect earnings growth to outpace its top-line growth.
As such, TSMC shares deserve an earnings multiple well above its current 24 times analysts' expectations. If TSMC can achieve an earnings multiple of 27, its market cap will exceed $2 trillion. Granted, there are geopolitical risks weighing on its valuation. But as TSMC continues to put up solid earnings growth quarter after quarter, even a low earnings multiple will push its value above the $2 trillion threshold.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Adam Levy has positions in Alphabet, Amazon, Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing and is short shares of Apple. 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.

Meet the Next Member of the $2 Trillion Club. It's Up 97% in the Past Year, and It Can Still Climb Higher in 2026.

Key Points
Alphabet has a massive AI tailwind and a potential gold mine with Waymo.
Nvidia should remain the dominant player in AI chips for years to come.
ServiceNow could be on track to become a $1 trillion company.
An old investing saying might be especially relevant amid the current uncertainty: "Stocks climb a wall of worry." We could see this adage proven correct over the coming months.
Which stocks are the best picks, if so? I think there are plenty of great alternatives. However, here are the best tech stocks to invest $50,000 in right now, in my opinion.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Alphabet
I know that Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is officially classified in the communication services sector rather than the technology sector and even ranks as the largest communication services company by market cap. Let's be real, though: Alphabet is, at its core, a tech stock. And it's one of the best on the market.
To paraphrase Mark Twain, rumors of Google Search's death have been greatly exaggerated. Predictions that generative AI would be a Google killer have fallen flat. Instead, Google Search is thriving, in part because of its integration with genAI.
AI, in general, is providing a massive tailwind for Alphabet. The company's Google Cloud unit is growing rapidly. Its Google Gemini ranks among the top large language models. Google is developing its own AI chips that are growing in popularity with external customers. It's also well-positioned to be a major player in the lucrative AI-powered smart glasses market.
I also think Alphabet has a potential gold mine in Waymo. The self-driving car technology business is the leader in the fast-growing autonomous ride-hailing service market. Don't be surprised if Waymo becomes a significant growth driver for Alphabet over the next few years.
2. Nvidia
Speaking of gold mines, Nvidia (NASDAQ: NVDA) is the most important picks-and-shovels stock in the modern-day AI gold rush. The AI boom we're witnessing wouldn't be happening without Nvidia's GPUs.
Sure, other companies (including, as previously discussed, Alphabet) are making AI chips to compete against Nvidia. However, with Nvidia's rapid pace of innovation, I don't foresee the company being knocked off its perch anytime soon.
Nvidia's forthcoming Rubin GPU platform provided a great example of its continual innovation. The company plans to begin shipping its first Vera Rubin chips, which combine its Vera CPUs with Rubin GPUs, in the second half of this year, hot on the heels of its overwhelmingly successful Blackwell chips. While the Vera Rubin technology uses twice the power of Blackwell, it delivers 10x the performance. That's a positive trade-off that many customers will love.
In the past, valuation was a top concern with Nvidia. But the company has delivered such tremendous growth that its stock looks reasonably priced now, trading at 23 times forward earnings.
3. ServiceNow
One of the biggest AI stories of 2026 so far is the sell-off of SaaS stocks, dubbed the "SaaSpocalypse." ServiceNow (NYSE: NOW) is one of many software stocks swept up in the mayhem. However, the pullback makes ServiceNow even more attractive for long-term investors, in my opinion.
The premise of the "SaaSpocalypse" is that organizations will be able to use AI to develop their own software rather than rely on SaaS platforms. While I don't doubt some software companies will see their business models disrupted as this happens, I don't think ServiceNow will be one of them.
ServiceNow's platform uses AI to automate organizations' workflows. Over 8,800 customers worldwide use the company's technology, including over 85% of the Fortune 500. CEO Bill McDermott stated in the January quarterly update, "ServiceNow has the fastest organic growth in the history of enterprise software."
That growth continues. ServiceNow's revenue jumped 20.5% year over year in the fourth quarter of 2025. Its remaining performance obligations (unrecognized future revenue from non-cancelable contracts) soared 26.5% year over year to $28.2 billion.
ServiceNow's current market cap is around $120 billion. McDermott believes that ServiceNow is "a $1 trillion company in the making." I think he could be right.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, 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 Alphabet 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 15, 2026.
Keith Speights has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Nvidia, and ServiceNow. 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.