The Nasdaq Composite, focused on technology, has doubled in value over the past five years despite challenges like the pandemic, high inflation, and recent trade tensions.
This growth highlights the tech sector’s role as a key driver of wealth creation. Investing in innovative companies that lead change can build long-term wealth.
Two major trends—artificial intelligence (AI) and cloud computing—offer promising investment opportunities. For those ready to invest $50,000, two AI leaders stand out as strong portfolio choices.
1. Nvidia (NASDAQ: NVDA)
Nvidia’s stock surged in 2023 and 2024 but has cooled somewhat in early 2025. However, AI infrastructure spending continues to grow rapidly, making this a good time to invest in the AI chip leader.
Nvidia reported a 69% year-over-year revenue increase to $44 billion last quarter, despite a $4.5 billion charge related to export restrictions to China. CEO Jensen Huang highlighted strong global demand for AI computing solutions.
Nvidia’s new Blackwell platform is the fastest production ramp-up in company history, driving a 73% increase in data center revenue. Nvidia’s competitive edge lies in building complete computing systems, including fast interconnects between chips, which few competitors can match.
The company earned $76 billion in profits on $148 billion in revenue over the past year and aims to control a large share of the $1 trillion annual data center market by 2030.
2. Microsoft (NASDAQ: MSFT)
Microsoft’s shares rose sharply after strong quarterly results. Over the past decade, Microsoft has transformed into a leading cloud services provider, positioning itself well to benefit from rising AI demand.
Microsoft Cloud revenue grew 22% year-over-year to $42 billion last quarter, with Azure cloud services accelerating as businesses adopt AI to cut costs and boost productivity.
The volume of AI data processed increased fivefold to over 100 trillion tokens compared to last year. In April alone, Microsoft processed more than 50 trillion tokens, showing rapid growth in AI workloads.
Over 10,000 organizations use Microsoft’s Azure AI Foundry for building AI agents, which can solve complex problems independently. Microsoft earned $96 billion in profits on $270 billion in revenue over the past year. It has the resources to expand data centers and deploy thousands of Nvidia chips, supporting continued growth.
Both companies are highly profitable and well-positioned to capitalize on AI and cloud computing growth, making them solid choices for investors looking to deploy $50,000 in the current market.
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