Harsh Chauhan, The Motley Fool

Wed, Jun 11, 2025, 3:30 PM6 min read

• Nvidia has played a pioneering role in the proliferation of AI with its chips, but there is another company that's dominating another lucrative market with the help of AI.

• This company is outgrowing the massive industry it operates in and could witness a significant bump in its revenue in the long run.

• 10 stocks we like better than Meta Platforms ›

Nvidia has been at the forefront of the artificial intelligence (AI) revolution thanks to its powerful graphics processing units (GPUs), which have allowed companies and governments around the globe to train and deploy AI models and applications.

The semiconductor giant literally kicked off the AI craze with its A100 GPUs, which were used to train ChatGPT. Since then, multiple AI models from several companies have been trained and brought into production with Nvidia's chips. In fact, Nvidia continues to dominate the AI chip market even now, establishing a big lead over its rivals.

Nvidia's AI-fueled growth has powered a massive surge in its stock price in the past three years. The stock remains a solid bet even after its phenomenal run thanks to the huge addressable market it is serving. However, there is another company that has the potential to dominate its industry -- just like Nvidia does -- thanks to AI.

Let's take a closer look at that name and see why it could turn out to be a solid addition to your portfolio.

Nvidia has left little room for other chipmakers to make a dent in the AI chip market. So, investors looking for another company with the ability to become a leading player in its market and deliver healthy stock price upside in the long run should consider Meta Platforms (NASDAQ: META) for their portfolios.

That's because Meta is using AI to corner a bigger share of the lucrative digital advertising market. The social media giant has been able to substantially increase advertisers' returns on ad dollars spent with the help of its AI tools. Last month, Meta pointed out that its AI-focused advertising tools are driving a 22% improvement in returns on ad spending for advertisers.

Every dollar spent by advertisers in the U.S. on the company's AI ad tools is generating an impressive return of $4.52. Not surprisingly, Meta plans to enable advertisers to fully create and optimize ad campaigns with AI by the end of 2026. Such a move means that brands and advertisers won't have to go through agencies to purchase ad inventories and plan their campaigns, as all of this would be handled by AI.