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Investing $15,000 in NVIDIA and Amazon: The Motley Fool's 2025 Strategy

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  Published in Stocks and Investing on Thursday, December 18th 2025 at 10:37 GMT by The Motley Fool
      Locale: New York, UNITED STATES

Investing $15,000 in Two Stocks: A Practical Guide to the Motley Fool’s 2025 Pick

On December 18, 2025 the Motley Fool published a concise but action‑packed article titled “Investing $15,000 into These 2 Stocks.” The piece is aimed at everyday investors who want to put a sizable sum to work without over‑splitting their portfolio into dozens of holdings. Rather than a long list of dozens of “must‑buy” names, the author zeroes in on two high‑profile, high‑growth stocks that they believe will deliver both solid fundamentals and attractive upside over the next decade: NVIDIA Corporation (NVDA) and Amazon.com, Inc. (AMZN).

Below is a distilled, word‑by‑word breakdown of the article’s core messages, the data that backs them, and how you can translate the advice into a practical investing plan.

1. Why NVIDIA and Amazon? – The Strategic Premise

The article opens by reminding readers that the market’s top performers are rarely “everyday” stocks. They’re firms that dominate their respective sectors, enjoy strong cash flow, and possess a moat that will keep competitors at bay. The author explains that NVIDIA and Amazon tick each of these boxes.

• NVIDIA is the global leader in graphics processing units (GPUs), which power everything from gaming rigs to data‑center AI workloads. The company’s move into AI and machine learning has opened a new growth engine that is expected to dwarf its gaming revenue over the next few years.
• Amazon remains the undisputed giant of e‑commerce and cloud computing (AWS). While the retail side has been hit by slowing discretionary spending, Amazon’s cloud business continues to command a 30%+ market share and is projected to grow at double‑digit rates for at least the next half‑decade.

Both firms have strong balance sheets, high return‑on‑equity figures, and a history of reinvesting in product development and acquisitions rather than paying out large dividends. That makes them ideal long‑term holdings for an investor who is willing to sit tight for 10–20 years.

2. NVIDIA – Growth, Valuation, and Risks

The Motley Fool article gives NVIDIA a bullish rating of “Strong Buy.” The key points the author makes are:

Fundamental Rationale

• AI & Data‑Center Boom – NVIDIA’s GPUs are the backbone of AI training workloads. The company’s recent “Grace” and “Hopper” GPUs are already powering leading AI research centers and cloud providers.
• Strategic Partnerships – NVIDIA is forging deep ties with major cloud players (AWS, Microsoft Azure, Google Cloud) and automotive OEMs. These alliances lock in recurring revenue streams and expand the company’s market presence.
• M&A Pipeline – The acquisition of Arm (pending regulatory approval) could cement NVIDIA’s position as a one‑stop shop for silicon and software.

Valuation Commentary

Although NVIDIA trades at a high P/E, the article argues the multiple is justified by the company’s projected growth. The author recommends a “discounted cash flow” model that assumes a 30% CAGR in free cash flow for the next 10 years, giving a terminal value that justifies the current price. The article also compares NVIDIA to other semiconductor leaders, noting that Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing Co. (TSMC) trade at lower multiples, but they lack NVIDIA’s AI dominance.

Risks

• Chip Shortages – Semiconductor supply chain disruptions could cap NVIDIA’s production, hurting revenue.
• Regulatory Scrutiny – The proposed Arm acquisition could face antitrust hurdles, potentially delaying the integration.
• Competitive Pressure – Companies like AMD and Intel are aggressively expanding their GPU and AI product lines.

3. Amazon – The “Everything Store” Revisited

Amazon receives a “Buy” rating, but the article is clear that the cloud business is the primary engine driving long‑term upside. The key take‑aways are:

Core Drivers

• AWS Growth – Amazon Web Services grew 22% in the most recent quarter, exceeding analyst expectations. The segment’s margin expansion signals that AWS is becoming a highly profitable unit.
• E‑commerce Recurrence – Prime members spend an average of $120 per year in the U.S., and that number is trending upward with the introduction of new Prime services.
• International Expansion – Amazon is rolling out new fulfillment centers in Southeast Asia, capturing a market that’s projected to double in e‑commerce sales by 2030.

Valuation Analysis

Despite a lofty P/E, the author explains Amazon’s valuation is anchored by its cash‑rich balance sheet and high free‑cash‑flow yield (≈ 12%). By discounting Amazon’s projected free‑cash‑flow growth to a 12% terminal rate, the article finds that the current share price is consistent with a 20‑year horizon. The author also highlights that Amazon’s diversification (AWS, advertising, logistics, and media) provides a buffer against any one sector’s slowdown.

Risk Factors

• Competition – Microsoft Azure and Google Cloud are catching up, and any slowdown in AWS growth could dent Amazon’s valuation.
• Regulatory – Antitrust concerns, especially in the U.S. and EU, could lead to fines or forced divestitures of Amazon’s cloud or retail assets.
• Commodity Costs – Rising logistics and raw‑material costs could pressure margins, though Amazon often offsets this via price increases.

4. How to Allocate the $15,000

The article offers a pragmatic allocation strategy:

1. Even Split – Put $7,500 in NVIDIA and $7,500 in Amazon. This balances the higher growth premium of NVIDIA with Amazon’s defensive cash‑flow.
2. Risk‑Tolerant Split – If you’re comfortable with a higher risk profile, allocate 70% to NVIDIA ($10,500) and 30% to Amazon ($4,500). This reflects NVIDIA’s higher upside potential.
3. Dollar‑Cost Averaging – Instead of buying all at once, the author recommends purchasing $1,000 monthly into each stock over 12 months. This reduces the impact of short‑term volatility.

The article also stresses that brokerage fees should be minimized by using a low‑fee platform like Vanguard’s brokerage or Charles Schwab. If you’re new to the market, a “no‑load” ETF that tracks the S&P 500 can be a complementary holding, but the focus of the piece remains on the two individual names.

5. Putting It All Together – The 10‑Year Plan

The article outlines a simple 10‑year horizon, with the following checkpoints:

The article emphasizes that “investing for the long term means ignoring the noise of short‑term market swings.” It ends with a classic Motley Fool mantra: “Buy great companies at a fair price, hold for the long run, and stay patient.”

6. Bottom Line

The Motley Fool’s December 2025 article delivers a straightforward recommendation: Allocate $15,000 between NVIDIA and Amazon. The rationale is built on strong growth prospects, robust valuations when viewed through a long‑term lens, and solid risk mitigation through diversification between a pure growth play (NVIDIA) and a more balanced, cash‑rich company (Amazon).

Whether you’re a beginner or a seasoned investor, the key take‑aways are:

1. Focus on fundamentals, not headlines. Both companies show consistent earnings power and forward‑looking growth catalysts.
2. Use a disciplined allocation strategy. Whether you opt for a 50/50 split or a risk‑adjusted approach, stick to the plan.
3. Stay the course. Over a 10‑year period, the potential gains far outweigh the volatility you’ll see in the short term.

If you want to read the full article and explore the supporting research, you can follow the link on The Motley Fool’s website: [ Investing $15,000 into These 2 Stocks ].