AI Stocks Surge: Nvidia, Salesforce, and AppLovin in Focus

AI Stocks Surge: A significant increase in capital expenditures aimed at AI infrastructure signals strong growth in key technology companies. Nvidia, Salesforce, and AppLovin stand out as major players benefiting from this trend.

Date: 10-02-2025

AI Rating: 7

A strong focus on AI infrastructure is evident in the report, with major companies like Amazon, Microsoft, and Alphabet planning to invest a total of $255 billion in capital expenditures directed at AI. Additionally, Meta Platforms is set to invest between $60 billion and $65 billion for AI-related spending. This trend indicates a high demand and robust future growth potential for AI-related stocks.

Nvidia's Performance: The analysis highlights Nvidia as a key player in the AI infrastructure arena, boasting a 90% market share in the GPU market. The company is on track for its second consecutive year of triple-digit revenue growth. It also has a forward P/E ratio of 30 based on 2025 analysts' estimates and a PEG ratio of 0.9, indicating potential undervaluation.

Salesforce's AI Solutions: The company is diversifying into agentic AI and has seen significant growth with its Agentforce solution. Salesforce's forward P/E is 29 based on next year's estimates, labeling it as cheap. The introduction of AI agents is a game-changing move, and the company predicts 1 billion agents will be deployed by fiscal 2026, posing a considerable opportunity for revenue growth.

AppLovin's Growth: AppLovin has experienced tremendous growth, showing a 690% increase over the past year. The report mentions a 39% increase in revenue last quarter, with an impressive 820-basis point increase in gross margins bringing them to 77.5%. AppLovin aims to expand its AI capabilities beyond gaming which could enhance future growth further.

Overall, the report indicates a favorable investment landscape driven by rapid advancements in AI technology, with several companies poised to capitalize on this trend.

Stocks: NASDAQ:NVDA NYSE:CRM NASDAQ:APP NASDAQ:AMZN NASDAQ:GOOGL NASDAQ:MSFT NASDAQ: META