2 AI Stocks to Beat Nvidia: The Next Big Players in Artificial Intelligence The AI space is exploding and companies are racing to be the top dog. While Nvidia (NASDAQ: NVDA) has been the gold standard for AI hardware—especially its high-performance GPUs—two tech giants, Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOGL) , are emerging as serious contenders. They’re making huge progress in AI infrastructure, software and cloud services and could outshine Nvidia by 2028.
Let’s get into what makes Meta and Alphabet stand out and how they could change the AI landscape.
2 AI Stocks Poised to Outperform Nvidia
| Company | AI Strengths | Market Strategy | Projected Growth (by 2028) |
|---|---|---|---|
| Meta Platforms (META) | AI-driven social media, Llama AI models, AI-powered advertising | Heavy AI R&D, custom AI chips, AI-driven metaverse | Expected to double AI revenue and integrate AI into all Meta platforms |
| Alphabet (GOOGL) | AI-powered search, DeepMind, Google Bard, AI cloud computing | Expanding AI cloud services, autonomous AI research, AI-focused hardware | Dominating AI services, enhancing AI search, and growing AI enterprise solutions |
| Nvidia (NVDA) | AI-focused GPUs, AI-powered computing | Dominant in AI hardware, expanding AI cloud | Facing competition from AI software-driven companies |
Why Meta Will Win?
Betting Big on AI and Custom Chips
Meta Platforms, the company behind Facebook, Instagram and WhatsApp, isn’t just a social media giant anymore. It’s becoming an AI powerhouse under CEO Mark Zuckerberg’s leadership. The company is investing heavily in AI research and development, especially in custom AI chips and advanced AI models like Llama.
Why Meta is a Strong AI Player?
- Llama AI Models: Meta’s Llama series is gaining traction as a competitor to OpenAI’s GPT models and Google’s Bard. For example, Llama 3.3 is outperforming some Nvidia-powered models in text and image generation.
- Custom AI Chips: Meta is reducing its reliance on Nvidia by designing its own AI chips. These chips will power Meta’s data centers and fuel its growing suite of AI applications from personalized ads to content moderation.
- AI-Driven Social Media and Advertising: Meta uses AI to enhance ad targeting, personalize user experiences and automate content moderation. That means more revenue and more engaged users.
- AI-Powered Metaverse: Zuckerberg’s metaverse vision includes AI-generated virtual worlds and avatars which could change how we interact online.
Example: Meta recently announced its internal benchmarks show Llama 3.3 outperforming Nvidia-backed models in certain tasks. That means they’re closing the gap in AI performance.
Why Alphabet Will Win
Leading the Charge in AI Software, Search and Cloud Computing
Alphabet, the parent company of Google, has been an AI pioneer for years. With innovations like DeepMind, Google Bard and AI-powered search algorithms, Alphabet is taking a different approach to beating Nvidia—focusing on AI software not hardware.
Why Alphabet is a Strong AI Player
- AI-Powered Search: Google is putting AI into its core business, search algorithms get better and more personalized.
- DeepMind: Alphabet’s DeepMind division is working on AI research in drug discovery, robotics and reinforcement learning.
- Google Bard & AI Cloud: Google’s Bard AI is competing with ChatGPT, its AI cloud services will change the game for enterprise AI.
- Custom AI Hardware: Google’s TPUs are beating Nvidia in AI computing and are cheaper for AI workloads.
Example: Alphabet’s new Gemini AI , next-gen language model, is a game-changer. It beats OpenAI’s GPT-4 in several areas and solidifies Google’s position as an AI leader.
Why Alphabet Will Win
Leading the Charge in AI Software, Search and Cloud Computing
Alphabet, the parent company of Google, has been an AI pioneer for years. With innovations like DeepMind, Google Bard and AI-powered search algorithms, Alphabet is taking a different approach to beating Nvidia—focusing on AI software not hardware.
Why Alphabet is a Strong AI Player?
- AI-Powered Search: Google is putting AI into its core business, search algorithms get better and more personalized.
- DeepMind: Alphabet’s DeepMind division is working on AI research in drug discovery, robotics and reinforcement learning.
- Google Bard & AI Cloud: Google’s Bard AI is competing with ChatGPT, its AI cloud services will change the game for enterprise AI.
- Custom AI Hardware: Google’s TPUs are beating Nvidia in AI computing and are cheaper for AI workloads.
Example: Alphabet’s new Gemini AI , next-gen language model, is a game-changer. It beats OpenAI’s GPT-4 in several areas and solidifies Google’s position as an AI leader.
Nvidia: Still a Leader but in Trouble
Despite being the AI hardware king, Nvidia is facing competition. Meta, Alphabet and Amazon are building their own AI solutions and reducing their dependence on Nvidia’s GPUs.
Nvidia’s Challenges
- Custom AI Chips: Meta, Google and Amazon are building their own AI processors like AWS Inferentia and Google TPUs.
- AI Software: While Nvidia is great at hardware, the industry is valuing AI software and cloud-based solutions more.
- Cost-Effective AI: Competitors are offering cheaper and more accessible AI services making Nvidia’s premium hardware less necessary.
Example: Amazon Web Services (AWS) now uses Inferentia chips for AI workloads and is bypassing Nvidia’s GPUs altogether.
Why Meta and Alphabet will surpass Nvidia by 2028?
Key Drivers
Billions in AI Investments: Both are investing heavily in AI R&D and will stay ahead of the curve.
- Diversified AI Strategies: Unlike Nvidia which is focused on hardware, Meta and Alphabet are diversifying into AI software, cloud computing and consumer facing AI services.
- Enterprise AI Leadership: Alphabet’s AI cloud services and Meta’s AI driven advertising platforms will dominate the enterprise AI market.
FAQs on 2 AI Stocks that will outperform Nvidia
- Why are Meta and Alphabet good AI stocks?
Both are investing heavily in AI from custom chips to AI driven cloud services and are leaders in the AI revolution.
- Does Nvidia still have an edge in AI?
Yes, Nvidia is still the leader in AI hardware but the growing importance of AI software and cloud services will challenge that.
- What to look for in AI stocks?
Research, cloud growth, AI software advancements and significant investments in AI driven innovations.
- Can Meta or Alphabet surpass Nvidia in valuation by 2028?
Yes. With AI development and revenue growth happening fast, both can match or even surpass Nvidia’s market cap.
- Are there other AI stocks to consider?
Yes! Microsoft (MSFT), Amazon (AMZN) and Tesla (TSLA) are also in the AI game and will be big players by 2028.