Choosing Between Nvidia and Arm Holdings for Your AI Stock Investment
The case for Nvidia
__Nvidia's__ eye-popping stock market surge can be justified by the company's terrific share of the AI chip market, which has led to a sharp acceleration in the company's revenue and earnings growth in recent quarters. The graphics specialist ended fiscal 2024 with $60.9 billion in revenue, an increase of 126% over the prior year.
Analysts
- Customers willing to pay high prices for Nvidia's AI processors
- Analysts foresee long-term growth potential for Nvidia
The case for Arm Holdings
__Arm Holdings__'s architecture powers more than 50% of chips with a processor inside them, and the adoption of their AI-specific Armv9 architecture is on the rise. Analysts anticipate a just over 44% annual earnings growth rate for Arm over the next five years.
Rising Demand
- 27 companies utilizing Arm's total access license
- Solid revenue growth projections for Arm
The verdict: Nvidia emerges as the more attractive AI stock for investment due to its dominating market share and faster revenue growth compared to Arm Holdings.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.