Nvidia dominates AI chip market, seen as cheap buy, while AMD offers solid performance

From Nasdaq: 2025-03-14 03:45:00

Artificial intelligence (AI) stocks led the Nasdaq to double-digit gains last year, but recent weeks have seen struggles as concerns about the economy and President Trump’s tariffs weigh on high-growth companies. The Nasdaq Composite fell over 10% from its peak in December. Investors see a buying opportunity as major AI companies drop in value.

Nvidia dominates the AI chip market with an 80% share and record-breaking revenue growth. Despite concerns about high prices and competition, Nvidia’s focus on innovation and annual updates keeps it ahead. Trading at a lower valuation of 25x forward earnings, Nvidia is considered a cheap buy for long-term investors.

AMD, the second-biggest player in the AI chip market, offers solid performance at a reasonable price. The company’s growth story hasn’t been as explosive as Nvidia’s, but it has seen significant revenue increases. With a lower valuation and a focus on annual innovations, AMD also presents a compelling buying opportunity during the Nasdaq correction.

Both Nvidia and AMD make strong additions to an AI portfolio, but Nvidia stands out as the better buy during the Nasdaq correction. With a solid market position, focus on innovation, and recent drop in valuation, Nvidia is poised for continued growth in the AI market. Investors see this as a second chance to invest in a potentially lucrative opportunity.



Read more at Nasdaq: Better AI Buy in the Nasdaq Correction: Nvidia vs. AMD