From Nasdaq: 2024-05-18 05:48:00

Interest in artificial intelligence (AI) has surged in 2023, driven by OpenAI’s ChatGPT launch. Tech stocks have seen gains due to bullish investor sentiment. Chipmakers play a crucial role in AI development, with Nvidia leading in GPUs. Intel is catching up in AI with new chips but lags behind Nvidia’s market share.

Intel stock is up 5% YoY, trailing Nvidia and AMD. Intel faced challenges losing CPU market share and chip shortages. Restructuring to focus on chip manufacturing and AI, Intel recently announced new AI chips outperforming Nvidia in some aspects. Q1 2024 saw revenue growth in data center and AI segment for Intel, with positive cash flow.

Nvidia dominates GPU market for AI, partnering with OpenAI. Stock value, revenue, income, and cash flow have soared. Experts estimate an 80% market share in data center AI chips for Nvidia. Intel competes with recent growth but Nvidia is well positioned to lead the AI market, projected to reach $2 trillion by 2030.

Intel and Nvidia offer different values as AI stocks. Nvidia is established in AI, while Intel is newer but has potential value. Intel’s lower forward P/E and P/S ratios suggest better value for investors. Investing now in Intel at a lower stock price may yield significant gains in the long term compared to Nvidia.

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Read more at Nasdaq: Better AI Stock: Intel vs. Nvidia