From Nasdaq Corporate Solutions: 2024-06-09 07:45:00

Nvidia’s stock has surged 3,300% in the last five years, dominating the AI race over competitor AMD, which saw only a 500% increase. With AMD aiming to capture market share in GPUs and AI chips, investors may find potential advantages in the smaller chipmaker’s lower prices and business diversification.

AMD faces tough competition from Nvidia in the market for GPUs, especially in AI chips where Nvidia controls 70% to 95% of the market. However, AMD is not backing down, recently launching the M1325X AI chip to compete with Nvidia’s offerings, despite the industry leader updating its AI chips annually.

While AMD has advantages over Nvidia in terms of pricing and lower reliance on data center chips, Nvidia’s lower valuation and growth rates make it a more attractive investment option. However, AMD could be a good choice for investors seeking exposure to the long-term AI opportunity without the higher price tag associated with Nvidia.

The Motley Fool Stock Advisor team suggests looking for other investment opportunities beyond Advanced Micro Devices, as they have identified the 10 best stocks to buy now, none of which include AMD. Although investing in Nvidia has historically brought significant returns, seeking advice from financial experts is recommended for making informed investment decisions.



Read more at Nasdaq Corporate Solutions: Forget Nvidia: Could This Artificial Intelligence (AI) Stock Be a Better Buy?