From Nasdaq Market News: 2024-06-06 05:40:00

Artificial intelligence (AI) is a rapidly growing tech sector, with the need for cutting-edge computer chips to power AI operations. Nvidia leads in AI chip market share, with $22.6 billion in data center revenue in Q1. AMD is a competitor with $2.3 billion in Q1 data center sales and potential for growth.

Investors should consider investing in Nvidia and AMD, as both companies are well-positioned to benefit from AI tailwinds. Nvidia controls a significant portion of the AI chip market, while AMD has shown signs of growth in the data center space.

Nvidia’s stock price has increased by 585% in the past three years, with a forward P/E of 42. AMD’s stock trades at a forward P/E of 49, with analysts predicting 42% annual earnings growth over the next three to five years.

Investors considering buying Nvidia stock should be aware that it was not among the Motley Fool’s top 10 stock picks. However, Stock Advisor provides a blueprint for success, including guidance on building a portfolio and regular updates from analysts.

Overall, investing in AI stocks like Nvidia and AMD could be a strategic move for investors looking to capitalize on the growing demand for AI technology in various industries.



Read more at Nasdaq Market News: 2 of the Best Artificial Intelligence (AI) Stocks to Buy in 2024