Manali Pradhan, The Motley Fool
6 min read
In This Article:
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Nvidia's dominance in the AI chip market and robust software moat has made it a darling of the stock market.
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Amazon's AWS cloud computing platform, complete AI stack, and effective data-driven advertising platform are key growth catalysts.
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Both companies are trading at valuation levels significantly lower than their historical averages.
The U.S. equity market has been challenging for investors in 2025, weighed down by inflation, geopolitical tensions, and rising interest rates. Investors have also been concerned about the escalation of trade wars in an already uncertain macroeconomic environment.
However, such periods of high turbulence also offer astute investors a rare opportunity to pick up shares in attractive stocks that are trading at reasonable valuation levels.
You do not need boatloads of capital to take advantage of this situation. All you need is $1,000 that is not required to pay bills or for contingencies. Here's why investors can consider investing $1,000 in each of these stocks now.
Semiconductor giant Nvidia's (NASDAQ: NVDA) unrivaled 92% share in the $125 billion data center GPU market has positioned it as a dominant player in the rapidly evolving artificial intelligence (AI) market. Cloud service providers, regional cloud providers, and enterprises are increasingly adopting the company's GPUs to build their AI infrastructure.
Furthermore, Nvidia's recently launched Blackwell architecture chips are already showing strong momentum, with revenue of $11 billion recorded in the recent quarter. Blackwell systems, which are optimized for inferencing (real-time deployment) workloads, process reasoning workloads -- another type of inferencing workload -- at 25 times the speed and 20 times the cost efficiency of the previous generation Hopper 100 chips. Hence, Blackwell stands to benefit significantly from the increasing demand for recurring inferencing workloads across industries.
In addition to building a solid moat in AI hardware, Nvidia has also developed a comprehensive software ecosystem. This particularly includes Compute Unified Device Architecture (CUDA), a parallel computing platform, used to optimally program Nvidia's GPUs.
While Nvidia's stock price has been quite volatile in 2025, falling nearly 35% from its high in early January to its recent low in April, it has since increased by almost 39% to $135.29 (as of May 14). The surge in share price was driven by the company's strategic partnership with Saudi Arabia, which will provide several hundred thousand of its advanced GPUs over the next five years.
