Comparison between Intel and NVIDIA in AI-focused chip stock market, NVIDIA appears as better investment option.

From Nasdaq: 2025-06-23 10:33:00

Intel and NVIDIA are leading semiconductor companies focusing on AI and advanced chip technologies. Intel is shifting towards data-centric businesses like AI and autonomous driving, while NVIDIA dominates in visual computing and GPUs, crucial for AI and high-performance computing. Both are enhancing their semiconductor portfolios to capitalize on AI growth trends.

Intel is investing in expanding manufacturing capacity for AI, offering industry-leading AI processing capabilities with the Xeon 6 processors. The company aims to drive down costs and improve performance in the semiconductor ecosystem, with plans to regain transistor performance leadership by 2025. However, challenges include market restrictions in China and lagging in GPU and AI compared to competitors.

NVIDIA is gaining traction in enterprise AI with its AI platforms, including DGX Cloud AI infrastructure. The company is well-positioned for the AI revolution with upcoming GPUs like Hopper 200 and Blackwell, designed for large language models and generative AI applications. Competition, supply chain risks, and export restrictions pose challenges for NVIDIA’s growth.

Zacks estimates show Intel’s 2025 sales declining 4.3% year-over-year with EPS growth of 323.1%. NVIDIA’s 2025 sales are expected to grow by 51.4% with EPS rising by 42.1%. Intel has declined in stock price over the past year, while NVIDIA has gained. Intel appears more attractively valued than NVIDIA based on price/sales ratio.

Both Intel and NVIDIA have a Zacks Rank #3 (Hold). NVIDIA seems to be a better investment option due to its stronger revenue and EPS growth, although it is relatively more expensive. With a long-term earnings growth expectation of 28.2%, NVIDIA appears better placed than Intel with 10.5% expectations. The companies anticipate improved earnings in 2025, with NVIDIA showing consistent revenue and EPS growth compared to Intel’s challenges.



Read more at Nasdaq: Intel vs. NVIDIA: Which AI-Focused Chip Stock is the Better Buy?