Nvidia Could Soon Trail Only Amazon in Tech Revenue. Why I Favor NVDA Stock Here.

Nvidia’s (NVDA) transformation during the artificial intelligence (AI) boom has been nothing short of remarkable, and the chipmaker could soon reach another major milestone. Based on its latest growth outlook, Nvidia could eventually become the second-largest U.S. technology company by annual revenue, overtaking giants like Apple (AAPL) and Alphabet (GOOGL) and trailing only Amazon (AMZN). That would be an extraordinary achievement for a company that, before the AI boom, was primarily known for selling graphics processors to gamers.

Still, comparing Nvidia and Amazon purely on revenue would be misleading given the significant differences between their business models. Amazon generates hundreds of billions of dollars from a sprawling ecosystem that includes e-commerce, cloud computing, advertising, subscriptions, and logistics. Meanwhile, Nvidia derives much of its sales from high-margin data-center chips and AI infrastructure. Interestingly, the two companies are also becoming increasingly intertwined.