With $100K Ready to Invest—Should All of It Go Into NVIDIA or Be Split With Meta?

Tech stocks are currently in high demand, and despite market volatility, Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META) remain industry leaders. Both stocks offer promising return forecasts according to Wall Street, but with $100K to invest, a thorough analysis of each company is essential before deciding. Undoubtedly, both are tech sector giants with a history of delivering substantial returns. In this discussion, we’ll explore the key catalysts driving their performance in 2025 to determine the best place for your investment.

Key points in this article:

• Nvidia and Meta Platforms are two of the biggest tech giants investing in the AI sector.
• Both the companies have a strong growth potential and their stocks could see an upside.
• If you’re looking for more stocks with massive potential, grab a complimentary copy of our “The Next NVIDIA” report. It features multiple stocks with a strong upside potential.

Nvidia

A frontrunner in the Artificial Intelligence race, Nvidia was once known for setting the gold standard in GPUs for gaming PCs. The company generated the majority of its revenue from GPUs and over the years, it started focusing on AI and machine learning which also allowed it to produce higher-end GPUS. It gained a stronghold in the AI market and started seeing a massive rise in data center sales. Its growth was driven by the rising demand for AI chips across the world and as companies started increasing their AI investment, Nvidia started to benefit. 

In the third quarter of 2024, the company saw a 112% year-over-year jump in data center revenue and a 94% rise in total revenue. For the year 2022, the company reported a revenue of $27.0 billion, followed by $60.9 billion in 2023. In the first three quarters of 2024, the company has already reported a revenue of $91.1 billion. I am confident Nvidia will beat expectations in the final quarter results.

For 2025, analysts expect the EPS and revenue to grow over 80% as the company continues to expand its AI market. Other companies are rolling out cheaper AI chips and GPUs, but Nvidia will have a first-mover advantage and will continue to remain the top choice of business owners. 

Exchanging hands for $139, I think Nvidia is reasonably priced and has an upside potential. Its 52-week high is at $153 and the upcoming quarterly results could take the stock to a new high. Rising competition and geopolitical tensions have led to volatility in the stock price but I believe this is temporary. With new technological advancements, the stock will move higher. While you must not expect a similar rally anytime soon, this stock will continue rewarding you over the years.

Analysts are highly optimistic about the stock and have a strong buy rating with an average price target of $179, up 28% from the current level.

Meta Platforms

Known for the social media apps, Facebook, Instagram, and WhatsApp, Meta Platforms has become a part of all of our lives in one way or the other. The tech giant has been a part of several controversies but has managed to swim through the rough tide. The company saw a drop in revenue and EPS in 2022 but has bounced back and impressed the market. The company’s advertising business is a major growth driver and has helped the revenue and EPS grow. With 3.35 billion daily users, Meta sits at the top of the social media industry and attracts marketers from across the globe. 

For the fourth quarter, the company reported a revenue of $48.4 billion, a 21% year-over-year jump and the EPS soared 50% to $8.02. It will continue to invest in AI infrastructure and expects to spend $65 billion on the segment. 

If TikTok gets banned in the country, Meta will be a solid beneficiary since advertisers will immediately move towards Instagram and Facebook. Meta has a very powerful network effect and every individual uses at least one of its social media apps. Despite growing competition in the social media industry, it will not be possible for any business to reach the worldwide network that Meta has.

Trading for $703, the stock is trading at a premium, and short-term challenges could restrict an upside. There is rising competition in the industry and privacy investigations in Europe and the U.S. could impact the company in the near term. META stock is up 49% in the year and 33% in the past six months and is moving closer to the 52-week high.

Wall Street analysts have an average price target of $764, a 4% upside from the current level, and a Strong buy rating. There is a chance Meta could announce a stock split in 2025 but it has never split its stock before so we can just wait and watch. 

The verdict

NVIDIA and Meta Platforms stand out as exceptional companies with robust fundamentals, but lofty valuations. Both hold commanding positions in their respective industries—NVIDIA as the AI chip leader and Meta as the social media titan—and have consistently proven their resilience and growth potential.

With analysts forecasting double-digit EPS growth for both in 2025, driven by AI innovation and advertising strength, these stocks are poised for long-term success.

I recommend allocating your $100K evenly—$50K to NVIDIA and $50K to Meta—creating a balanced portfolio that capitalizes on their complementary strengths. This strategy mitigates risks from short-term volatility, such as competition or geopolitical pressures, while positioning you to benefit from their sustained upward trajectories over the coming years.

The post With $100K Ready to Invest—Should All of It Go Into NVIDIA or Be Split With Meta? appeared first on 24/7 Wall St..