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Nvidia’s Not on the List.

Nvidia’s Not on the List.

Even though 2024 is drawing to a close and a new year full of surprises is upon us, artificial intelligence (AI) will surely remain a top priority for investors next year.

While Nvidia is widely considered the ultimate barometer for the health of the AI ecosystem, I see a few other candidates as top investment choices for 2025.

Advanced Micro Devices (NASDAQ: AMD), Amazon (NASDAQ: AMZN)and Tesla (NASDAQ: TSLA) are opportunities to buy hand over fist next year as AI mania continues.

Industry trends suggest that Nvidia owns a staggering 88% share of the GPU market. On the surface, such a strong foothold might suggest that Nvidia simply has the most superior products in the marketplace. While some customers would argue that this is very much the case, there is a more nuanced reason for Nvidia’s dominance — namely, a lack of competition over the last two years essentially provided Nvidia with a first-mover advantage.

However, over the last year or so, AMD quietly emerged as a formidable competitor in the data center GPU realm, thanks in large part to its MI300 accelerators. The MI300 has been such a bellwether for AMD that its own data center services business is growing at essentially the same rate as Nvidia’s (which has been decelerating over the last few quarters).

Next year, AMD is scheduled to release a next-generation architecture, dubbed the MI325X, which is geared toward competing with Nvidia’s new Blackwell GPUs. Furthermore, AMD’s GPU roadmap also includes a planned launch in 2026 for its MI400 chipset, which is likely an answer to Nvidia’s Rubin architecture, which is also planned for 2026.

While I’m not insinuating that AMD will become a larger enterprise than Nvidia, the company’s pace of innovation needs credit. With that, I could easily see AMD beginning to acquire incremental market share away from Nvidia as investment in AI infrastructure continues to boom.

AMD is a screaming buy right now as investors appear to be overlooking the company’s progress, which is currently overshadowed by that of Nvidia.

Image source: Getty Images.

Amazon as the single most lucrative opportunity among mega-cap tech. While Amazon’s core operations sit between e-commerce and cloud computing, the company also has a subscription business (Prime), a streaming platform, and a fast-growing advertising unit. Amazon is an incredibly unique business, as its diverse model allows it to stitch AI-powered features across the company’s broader fabric.

Between holiday-driven shopping trends, corporate budgets focusing more on AI, and new investments in its streaming services, Amazon looks poised for a blowout fourth-quarter performance. On top of that, the company is making some notable investments in AI infrastructure — namely in the form of homegrown chips (Trainium and Inferentia) as well as through a lucrative partnership with OpenAI competitor Anthropic.