Nvidia, Amazon, and Nebius Lead the Pack as AI Growth Continues

Nvidia's strong growth pace is expected to continue into 2027, according to its management. They expect revenue growth of 70% for next year, which is impressive considering the company's size.

Nvidia has a track record of outperforming expectations, and its current valuation at 24 times forward earnings is relatively low compared to where it normally is. In 2024 and 2025, Nvidia ended the year valued at at least 40 times forward earnings.

In addition to Nvidia, Amazon's cloud computing service, AWS, also looks promising. AWS accounted for 60% of operating income in Q2 and grew at a rapid 37% pace. With hundreds of billions being spent on data centers, this growth rate is expected to stay elevated throughout the next few years.

Nebius is another cloud computing company that provides AI computing services. It has seen massive demand for purpose-built AI computing and is acquiring data centers at a rapid pace. Its growth rate was 454% in Q2, and Wall Street analysts expect monster growth over the next few years, with 520% and 537% growth in Q3 and Q4, and then 270% growth in 2027.