“Comparing Amazon and Nvidia: Which Company is Leading the Race in AI Stocks?”,

With artificial intelligence (AI) being the technology to invest in, many tech giants are seeing their share prices soar. Amazon and Nvidia are two stocks that are particularly on the rise. While Amazon’s AI product, Alexa virtual assistant, is well known, the most significant AI opportunity for the company is its Amazon Web Services (AWS) unit, which includes chatbots, speech recognition, text-to-speech, image and video analysis, and a lot more. AWS ranks as the world’s largest cloud services provider, with a market share of 33%, according to technology services company, AAG. Amazon is also poised to benefit from connected TV and healthcare, making it a potential growth driver for the stock.

Nvidia’s graphics processing units (GPUs) have been the gold standard for powering gaming apps, accounting for a significant growth opportunity for the company. However, Nvidia’s CEO has pointed out that AI is the “single most powerful force of our time,” and the company’s GPUs are ideal for AI apps. Nvidia’s partnerships with Amazon’s AWS, Alphabet, and Microsoft’s Azure have made it a valuable resource in the AI arena. Furthermore, Nvidia’s cuLitho software library is an intriguing AI innovation crucial in speeding up the manufacturing process.

While both Amazon and Nvidia offer tremendous growth potential amid the AI boom, there are two critical factors to consider, competition, and valuation. Amazon’s AWS unit faces fierce competition, notably from rivals like Google Cloud and Microsoft Azure, while Nvidia contends with AMD’s betting big in AI. Moreover, Both stocks trade at lofty earnings multiples, but Amazon is taking steps to increase its profits, leading to stronger earnings growth over the next few years, while Nvidia’s share price has risen too quickly, with some investors worried about the potential profit. Nonetheless, Nvidia is in a better position to profit from the rise of AI in more ways, making it a better AI stock over the long term.