As the tech market develops, demand for powerful chips is soaring. Countless industries including gaming, artificial intelligence (AI), cloud computing, and virtual/augmented reality (VR/AR) require more-advanced hardware. As a result, chipmakers like Advanced Micro Devices (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA) could see earnings soar over the long term, making their stocks attractive.
These two companies became favorites on Wall Street in 2023, with AMD's stock up about 76% and Nvidia's up around 189% since Jan. 1. Investors grew bullish over their prospects in AI as the sector is projected to expand at a compound annual rate of 37% in the coming years. And AMD and Nvidia are two of the biggest names producing chips capable of developing and running AI models.
So let's look at these tech giants to determine whether AMD's or Nvidia's stock is the better buy.
Source Fool.com