Nasdaq(NDAQ) The Motley Fool·2025-05-11 18:19Core Viewpoint - Tech stocks are experiencing a rally, presenting investment opportunities in major companies despite previous downturns [1][2][3] Group 1: Amazon - Amazon Web Services (AWS) generated 100 billion in capital expenditures by 2025, primarily to increase AWS capacity and invest in custom AI silicon solutions [6] - Shipping expenses grew only 3% year over year while paid units increased by 8%, indicating improved logistics efficiency [8] - Amazon's enterprise value is less than 3 times the 2025 sales estimates, approximately 10% below its long-term average, suggesting a favorable valuation for investors [10] Group 2: Lam Research - Lam Research is a leading manufacturer of semiconductor fabrication equipment, with 43% of its revenue from memory chip manufacturers [11][12] - The company reported a 24% revenue growth last quarter and anticipates further growth in Q2, despite tariff uncertainties [13] - Lam is expected to increase its market share in wafer fabrication equipment, outpacing the semiconductor industry's growth [14] - The stock trades at 19 times forward earnings estimates, with management projecting double-digit earnings growth over the next four years [15] Group 3: Meta Platforms - Meta Platforms increased its capital spending plans for the year to between 72 billion, focusing on AI investments [16] - The company reported a 16% revenue growth last quarter, driven by strong engagement and rising ad prices [17] - AI tools are expected to enhance marketing capabilities and customer service, potentially generating significant revenue from Meta's messaging apps [18] - Meta has consistently produced over $10 billion in free cash flow for eight consecutive quarters, supporting ongoing investments in technology [19] - The stock trades at 23 times forward earnings estimates, with potential for double-digit earnings growth, indicating it is undervalued [20]