Nvidia’s AI business is thriving, while Navitas secures a big power chip deal with Nvidia for long-term growth. Nvidia dominates the data center GPU market, catering to top AI companies. Navitas produces GaN and SiC power chips, expanding into the EV and data center markets. Nvidia’s stock rose 30%, Navitas’ 165% over the past year.

Analysts project Nvidia’s revenue and EPS to grow at a 47% and 45% CAGR from fiscal 2025 to 2028. Nvidia faces competition but remains a top AI chip provider. Navitas’s revenue expected to decline in 2025 and 2026 but rise by 84% in 2027 post-deal with Nvidia. Navitas may struggle to meet optimistic targets.

Nvidia appears reasonably valued at 25x projected EPS for 2027, while Navitas trades at 63x sales. Nvidia offers more growth potential as the AI market expands. Navitas’ valuation may be inflated by hype around its Nvidia deal and growth prospects. Nvidia is seen as a better investment option currently.

Considerations to buy Nvidia stock include Motley Fool’s list of top 10 stocks excluding Nvidia. Stock Advisor has outperformed the S&P 500 with a 930% average return. Nvidia wasn’t on the list, emphasizing other potential high-return stocks. In 2026, Stock Advisor’s total average return was 930%.

Read more at Nasdaq: Better AI Chip Stock: Nvidia vs. Navitas Semiconductor