From Nasdaq: 2025-05-08 20:15:00

Excitement around AI stocks like AMD and Nvidia has cooled off, with both down around 15% this year compared to the S&P 500’s 4% drop. While AI still holds potential, investors are scaling back. Comparing the two, Nvidia has a market cap 17 times higher than AMD, but is cheaper based on earnings.

AMD CEO Lisa Su forecasts “tens of billions” in revenue from AI chips, potentially boosting the stock. However, Nvidia is still ahead with 29% growth in the past year. AMD’s low profit margin and slower revenue growth compared to Nvidia’s double revenue increase are concerns for investors.

With stronger financials, a better valuation, and market dominance, Nvidia is the top AI stock to buy now. The expert team at Stock Advisor offers a “Double Down” stock recommendation for potential high returns, with past successes like Nvidia turning $1,000 into $303,566. Join to access alerts for three promising companies.

Author David Jagielski has no position in AMD or Nvidia. The Motley Fool recommends and holds positions in both companies. Consider the potential of AI stocks amid market shifts and investment opportunities.



Read more at Nasdaq: AMD vs. Nvidia: Which Artificial Intelligence Stock Should You Buy on the Dip?