Is NVIDIA still a good AI stock to buy?

NVIDIA has been the biggest AI winner so far, but the stock trades at a premium valuation. The bull case: AI chip demand is still growing rapidly, and NVIDIA's CUDA software ecosystem creates a strong moat. The bear case: high expectations are priced in, and AMD and custom chips (from Google, Amazon) are gaining ground. At current prices, NVIDIA needs to keep executing flawlessly.

What's the difference between investing in AI stocks vs AI ETFs?

Individual AI stocks offer higher potential upside (picking the right winner) but concentrated risk (picking the wrong one). AI ETFs spread risk across 30-100+ companies but dilute returns. Most investors benefit from both: an AI ETF as a core holding plus 2-3 individual conviction picks.

Which AI stocks pay dividends?

Very few. Microsoft pays a small dividend (under 1%). Broadcom pays a moderate one (around 1.5%). The rest (NVIDIA, Google, Meta, AMD, Palantir, TSM, Salesforce, Snowflake) either pay nothing or token amounts. AI stocks are growth plays: companies reinvest profits into R&D and infrastructure rather than paying shareholders.

Are AI stocks overvalued?

AI stocks trade at premium P/E ratios compared to the market average. NVIDIA's P/E often exceeds 50x. But high P/E ratios can be justified if growth is high enough. NVIDIA's earnings have been growing faster than its stock price. The real risk is a slowdown in AI spending. Compare the current AI boom to the dot-com bubble: the technology was real then too, but valuations got ahead of revenue. Diversifying across the AI value chain reduces this risk.

Can I buy AI stocks from Mexico or Brazil?

Yes. In Mexico, most major AI stocks are on the SIC through GBM and Bursanet. In Brazil, many are available as BDRs on B3. For stocks not available locally, international brokers like Interactive Brokers and Avenue provide full access to US markets.

AI Stocks

Best AI Stocks to Buy

The companies building, powering, and profiting from artificial intelligence. From chipmakers to cloud platforms.

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Decide by criterion, not by name: value, quality or dividend.
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AI Stocks vs AI ETFs: Which Is Right for You?

	AI ETFs	AI Stocks
Risk	Diversified across 30-100+ companies	Concentrated in individual names
Cost	Expense ratio (0.10-0.75%)	No ongoing fee
Effort	Buy once, rebalanced for you	Research + monitor each stock
Best for	"Set and forget" AI exposure	Conviction picks, active investors

AI ETFs

RiskDiversified across 30-100+ companies

CostExpense ratio (0.10-0.75%)

EffortBuy once, rebalanced for you

Best for"Set and forget" AI exposure

AI Stocks

RiskConcentrated in individual names

CostNo ongoing fee

EffortResearch + monitor each stock

Best forConviction picks, active investors

See our AI ETF picks

The AI revolution runs on NVDA's chips, scales on MSFT's cloud, and deploys through PLTR's platform.

The AI Value Chain

Chipmakers

The picks and shovels of AI. These companies design and manufacture the GPUs and custom silicon that train and run every AI model. They profit regardless of which AI application wins.

NVDA, AMD, TSM, AVGO

Platforms

Cloud infrastructure and AI model providers. They sell the compute, storage, and pre-built AI services that companies consume. Diversified revenue, lower risk than pure-play.

MSFT, GOOGL, META

Applications

Enterprise AI software. These companies build the tools that turn AI capabilities into business workflows and decisions. Higher risk, higher reward if their AI thesis plays out.

PLTR, CRM, SNOW

Chipmakers: The Picks & Shovels

Every AI model starts with silicon. These 4 companies own the hardware layer.

NVDA

NVIDIA Corporation

The undisputed king of AI chips. ~80% GPU market share for training.

P/E

29.0

Mkt Cap

$5.58T

1Y Return

+34.9%

Data centre revenue grew 400%+ driven by AI GPU demand.
Every major AI model (GPT, Gemini, LLaMA) was trained on NVIDIA hardware.
CUDA software ecosystem creates a moat that AMD and custom chips struggle to match.

AMD

Advanced Micro Devices, Inc.

NVIDIA's primary challenger. MI300 series gaining traction in data centres.

P/E

121.2

Mkt Cap

$778.7B

1Y Return

+206.5%

MI300 series competes for data centre AI workloads at a lower price point.
Growing AI revenue from both training and inference GPUs.
Lower valuation than NVIDIA offers upside if AMD captures meaningful market share.

TSM

Taiwan Semiconductor Manufacturing Company Limited

Manufactures ALL cutting-edge AI chips. The invisible backbone.

P/E

28.6

Mkt Cap

$2.22T

1Y Return

+70.9%

NVIDIA, AMD, Apple, and Broadcom all depend on TSMC for chip manufacturing.
No competitor can match their advanced process nodes.
Benefits from every AI chip company's success regardless of who wins the design race.

AVGO

Broadcom Inc.

Custom AI chips + networking for hyperscalers. VMware adds software.

P/E

44.4

Mkt Cap

$1.70T

1Y Return

+6.3%

Designs custom AI chips (ASICs) for Google, Meta, and other hyperscalers.
AI networking solutions connect GPU clusters in data centres: critical infrastructure.
Diversified across AI chips, networking, and enterprise software (VMware).

Platforms: Cloud & AI Models

The mega-caps building AI infrastructure at hyperscale.

MSFT

Microsoft Corporation

Azure AI + OpenAI partnership. Copilot across everything.

P/E

27.8

Mkt Cap

$3.71T

+0.3%

GOOGL

Alphabet Inc.

Gemini, DeepMind, Google Cloud. AI-first across the board.

P/E

16.8

Mkt Cap

$4.10T

+41.2%

Applications: Enterprise AI Software

Where AI meets business. Higher risk, higher growth potential.

PLTR

Palantir Technologies Inc.

AI-powered decision making for government and enterprise.

P/E

138.4

+7.4%

CRM

Salesforce, Inc.

Agentforce brings autonomous AI agents to enterprise CRM.

P/E

23.6

+2.8%

SNOW

Snowflake Inc.

Companies need data infrastructure before they can deploy AI, and Snowflake provides it.

P/E

-106.0

+49.5%

High valuations ahead

AI stocks trade at extreme valuations. NVDA's P/E sits at 29.0x. High growth can justify the premium, but if AI spending slows, these are the stocks that fall fastest. Diversify across all three layers rather than going all-in on one name.

Not sure if a stock is right for you?

We answer three simple questions for every stock, so you don't have to read financial reports.

Am I paying too much?

Is this a good business?

Will it keep me up at night?

NVDA is a great business but expensive and volatile. The gauges show you that instantly.

Want to know how we calculate this? Every gauge expands to show the exact formulas on the stock detail page.

See it in action on NVDA →

How Have They Performed?

One stock from each layer of the AI value chain: chipmakers, platforms, and applications.

NVDA

NVIDIA Corporation

MSFT

Microsoft Corporation

GOOGL

Alphabet Inc.

AMD

Advanced Micro Devices, Inc.

PLTR

Palantir Technologies Inc.

Compare all 5 AI stocks in detail

Where to Buy AI Stocks

Regulated platforms available in your country. Data from our broker comparison.

GBM

4.5

Platform of the Grupo Bursátil Mexicano that facilitates investing from Mexico in stocks, funds, and ETFs through a digital, educational, and intuitive interface. Design your portfolio and grow your wealth step by step.

Per trade

MXN 0*

Fintual

4.3

Latin American fintech that democratizes investing through mutual funds, stocks, and ETFs. Start investing with no commissions and from USD 1.

Per trade

MXN 0

Folionet

4.3

Established in Miami for the Latin American audience, Folionet provides you access to your own investment account in the U.S., wherever you are. Choose between a personal account or one with advisory services and start enhancing your capital in international markets.

Per trade

USD 0.98

Hapi

4.2

A platform originating from Peru, Hapi democratizes access to the U.S. Stock Market from Latin America, allowing you to invest in over 12,000 stocks, ETFs, and cryptocurrencies starting from just US$5. Begin building your portfolio today.

Per trade

from USD 0.10*

Compare all brokers

Should You Buy Individual AI Stocks?

Potential upside

Highest-growth sector in equities. AI spending is still accelerating year over year.
Pick individual winners for outsized returns that diversified ETFs can't match.
No ongoing expense ratio eating into returns, unlike AI ETFs.
Direct exposure to specific AI layers you believe in most.
Most major AI stocks are accessible from LATAM via SIC, BDRs, or international brokers.

Key risks

Extreme concentration risk. NVDA alone can swing your whole portfolio.
Valuations assume continued hypergrowth for years. If AI spending slows, multiples compress fast.
Most AI stocks pay zero dividends. Pure growth, no income cushion.
Sector rotation or spending slowdown hits all AI names simultaneously.
Requires active monitoring. These aren't 'buy and forget' stocks like dividend blue-chips.

How We Selected These Stocks

AI revenue exposure

Meaningful, quantifiable revenue from AI products, infrastructure, or services, not just an 'AI strategy' press release.

Market cap and liquidity

Large-cap stocks (>$50B) that LATAM investors can access through SIC, BDRs, or international brokers.

Value chain coverage

All three AI layers represented: chipmakers (NVDA, AMD, TSM, AVGO), platforms (MSFT, GOOGL, META), and applications (PLTR, CRM, SNOW).

Demonstrated growth

Proven AI revenue growth reflected in financial results, not speculative projections.

Quick Comparisons

GPU Rivals

The two GPU contenders for AI chip dominance.

NVDAAMD

Cloud AI Platforms

The mega-cap cloud and AI model providers.

MSFTGOOGLMETA

AI Software

Enterprise AI application layer, where AI meets business.

PLTRCRMSNOW

Full Stack AI

One pick from each layer of the AI value chain.

NVDAMSFTPLTR

Frequently Asked Questions

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Disclaimer (informational only / no trade execution):

Capital at risk. The information presented is for educational and informational purposes only. El Fondo does not provide financial advice. Listed brokers are external platforms. El Fondo does not execute trades or custody assets. El Fondo has no commercial relationship with them and receives no compensation for listing them. Investing involves the risk of partial or total loss of capital. Past performance does not guarantee future results.