Chip stocks have captivated Wall Street since the start of last year. An explosion of growth in the artificial intelligence (AI) market highlighted the crucial role chipmakers have to play in the industry's development. As a result, companies like Nvidia and Advanced Micro Devices (NASDAQ: AMD) rallied and made for attractive ways to invest in the budding AI industry.
Yet AMD's stock is arguably the more compelling buy between the two. The company's market cap is currently $255 billion, compared to Nvidia's, which reached over $3 trillion this year. The considerable difference suggests AMD could have far more room to run than Nvidia in the coming years.
These companies are active in the same high-growth industries. Meanwhile, AMD is investing heavily into AI to catch up to its rival and is already seeing promising results, according to this latest earnings release.
Source Fool.com