Unlocking Momentum: Why NVIDIA, Meta, and Amazon Lead Tech Growth
Discover how NVIDIA, Meta, and Amazon dominate momentum investing with AI-driven growth, strong earnings, and bold capital strategies, making them top picks for savvy investors seeking tech market leadership.
Key Takeaways
- NVIDIA, Meta, and Amazon lead momentum investing with strong AI and cloud growth.
- Driehaus strategy favors stocks with rising prices, earnings beats, and positive momentum.
- Meta’s $68 billion 2025 capex signals aggressive AI infrastructure expansion.
- Amazon’s revenue and net income projections highlight multi-engine growth beyond e-commerce.
- Momentum scores and earnings surprises confirm these stocks’ leadership in tech markets.
In the fast-paced world of technology investing, momentum stocks like NVIDIA, Meta, and Amazon are capturing the spotlight. These giants, part of the famed Mag 7, are not just riding waves—they’re creating them with AI innovation and cloud infrastructure expansion. Investors seeking to surf the momentum wave can look to the Driehaus strategy, which champions buying stocks that are already climbing higher rather than trying to catch falling knives.
NVIDIA powers the AI revolution with its GPUs fueling data centers worldwide, while Meta and Amazon pour billions into capital expenditures to build the backbone of tomorrow’s digital economy. This article dives into why these three companies stand out as momentum leaders, backed by strong earnings surprises and robust growth projections.
We’ll unpack the Driehaus momentum approach, explore each company’s unique growth drivers, and reveal actionable insights for investors eager to harness the power of momentum investing in 2025 and beyond.
Defining Momentum Investing
Momentum investing is like spotting the fastest runners in a race and betting on them to keep sprinting ahead. Richard Driehaus, a legend in this approach, famously said he’d rather buy a stock climbing higher than gamble on one trying to recover from a slump. This mindset flips the usual bargain-hunting script on its head.
The Driehaus strategy uses tools like the 50-day moving average and relative strength to find stocks that are already showing upward price trends. It also looks for companies beating earnings expectations consistently—because strong profits often fuel stock rallies.
The American Association of Individual Investors (AAII) refines this approach by focusing on stocks with positive momentum scores and solid earnings growth. This method narrows thousands of stocks down to a select few with the best upside potential. It’s a strategy that rewards patience and confidence in proven winners rather than chasing uncertain turnarounds.
NVIDIA’s AI Powerhouse Role
NVIDIA isn’t just a chipmaker; it’s the heartbeat of the AI revolution. Its GPUs are the engines behind massive data centers powering artificial intelligence workloads worldwide. Four major customers, including Meta and Amazon, account for about 53% of NVIDIA’s revenue, underscoring its critical role in the tech ecosystem.
Meta’s recent plans to build out AI-focused data centers directly boost NVIDIA’s growth, creating a powerful feedback loop. Despite trade tariffs posing some risk, the momentum behind AI infrastructure spending remains robust, with no signs of slowing down.
NVIDIA’s trailing four-quarter earnings surprise averages 3.6%, paired with a strong momentum score, signaling steady operational strength. For investors, NVIDIA represents a momentum stock riding the wave of one of the most transformative tech trends of our time.
Meta’s Bold AI Investments
Meta is doubling down on AI with a jaw-dropping $68 billion capital expenditure forecast for 2025, mainly to scale its data centers. This aggressive spending fuels its ambitions in generative AI and immersive technologies, positioning Meta as a frontrunner in the next digital frontier.
Meta’s earnings momentum is impressive, boasting a 20.5% average earnings surprise over the trailing four quarters and a top-tier momentum score. Its close partnership with NVIDIA as a key customer highlights how intertwined their growth stories are.
Investing in Meta means backing a company that’s not just dreaming about the future but building it—brick by brick, server by server. The scale of Meta’s capex signals confidence in long-term AI-driven growth, even if the road to returns requires patience.
Amazon’s Multi-Engine Growth
Amazon’s story goes beyond e-commerce; it’s a multi-engine growth platform powered by advertising, subscriptions, and especially Amazon Web Services (AWS). Wall Street projects Amazon’s revenue to soar from $710 billion in 2025 to $1.153 trillion by 2030, with net income climbing from $48.9 billion to $110.7 billion.
Amazon’s momentum credentials are solid, with a 23% average earnings surprise and a high momentum score. Its cloud infrastructure business fuels much of this growth, riding secular trends in digital transformation.
For investors, Amazon offers a diversified growth story where multiple business lines contribute to momentum. Its evolving role in cloud and digital services makes it a compelling pick for those seeking exposure to sustained tech expansion.
Harnessing Momentum in Tech Stocks
The common thread linking NVIDIA, Meta, and Amazon is their leadership in AI and cloud infrastructure, backed by strong earnings and bold capital investments. This synergy creates a momentum powerhouse, where each company’s growth fuels the others.
Momentum investing here means trusting the data—earnings surprises, momentum scores, and capex plans—rather than gut feelings or chasing bargains. It’s about riding the wave of secular trends, not short-term market noise.
Yet, investors should stay mindful of risks like tariffs, heavy spending, and competitive pressures. Momentum isn’t a guarantee, but with these tech giants, it’s a well-supported bet on the future of innovation and growth.
Long Story Short
NVIDIA, Meta, and Amazon aren’t just tech titans—they’re momentum machines, each riding the crest of AI and cloud infrastructure waves. Their strong earnings beats, aggressive capital spending, and leadership in innovation make them prime candidates for momentum-focused portfolios. While risks like tariffs and heavy capex loom, their strategic positioning offers compelling growth narratives. For investors, the lesson is clear: momentum investing isn’t about chasing bargains but backing winners already on the rise. Keeping an eye on earnings surprises, momentum scores, and capital expenditure plans can reveal which stocks are truly powering ahead. As the AI revolution unfolds, these companies exemplify how momentum strategies can align with transformative market trends. The relief of riding a well-chosen momentum stock’s upward surge beats the stress of guessing turnarounds. So, lean in, stay informed, and let momentum be your guide to tech growth.