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News Summary
The artificial intelligence (AI) infrastructure buildout has transitioned from thesis to reality, with hyperscalers like Microsoft, Alphabet, Meta, and Amazon collectively spending $100 billion per quarter on data centers and signaling even larger future investments. This
Background
In 2025, the global technology sector is undergoing a significant transformation driven by artificial intelligence. Major tech giants like Microsoft, Alphabet, Meta, and Amazon are heavily investing in AI data centers and computing power, marking a fundamental shift in capital allocation. Nvidia has emerged as a leader in the AI chip market, with its GPUs and CUDA software platform playing a crucial role in training and running AI models. Amazon Web Services (AWS), a leading global cloud provider, is actively integrating its cloud infrastructure with cutting-edge AI technologies, including custom silicon, to meet the increasing demand for AI workloads and maintain its market advantage.
In-Depth AI Insights
Does the immense spending by hyperscalers on AI infrastructure present long-term strategic risks for Nvidia and AWS, rather than just opportunities? Answer: - On the surface, the massive capital expenditures by hyperscalers directly benefit Nvidia and AWS, driving revenue growth. However, these companies are also aggressively developing their own custom AI chips (like AWS's Trainium and Inferentia), which could reduce long-term reliance on Nvidia's general-purpose GPUs. - This trend could lead to a gradual erosion of Nvidia's market share, especially as hyperscalers prioritize in-house solutions for cost and performance optimization. While Nvidia's CUDA ecosystem is powerful, the rise of custom silicon poses a potential challenge to its dominant position. - Furthermore, the