Arm Holdings is a better AI investment choice due to strong financials and market dominance.

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February 23, 2025 6:47:00 pm:

Artificial intelligence (AI) is a booming industry with many investment opportunities. Two top tech companies to consider are Strategy (NASDAQ: MSTR) and Arm Holdings (NASDAQ: ARM). Strategy uses generative AI in its analytics software, while Arm dominates the smartphone semiconductor market with a 99% share.

Strategy’s stock has risen 380% in the past year, but its revenue declined by 3% in the fourth quarter. Despite its AI offerings, Strategy’s gains were driven by Bitcoin investments, resulting in significant debt and shareholder dilution. On the other hand, Arm’s revenue reached a record high, with a strong balance sheet and net income growth of 190% year over year.

Arm is the better AI investment choice between the two companies. Arm holds a dominant position in the semiconductor market and has a strong financial standing. While both companies are pricey, Arm offers better value with a lower price-to-sales ratio. Investors may want to wait for a potential drop in Arm’s share price before buying.

Read more at Nasdaq: Better Artificial Intelligence Stock: Strategy vs. Arm Holdings