Better Buy: Ambarella Inc. vs. NVIDIA

Investing in companies that are developing state-of-the-art solutions for evolving technologies can be more than the usual stock-picking gamble. Choose the right one, and you can ride its success t excellent returns. Choose the wrong one and your investment dollars may disappear before your very eyes.

NVIDIA Corp. (NASDAQ: NVDA) has a long history of providing advanced graphics processing units (GPU's) built to upgrade the video game experience for hard-core gamers, but over the last several years, its fortunes have been tied to its move into providing processors for artificial intelligence (AI) applications. Ambarella Inc. (NASDAQ: AMBA) made its name providing the system-on-a-chip (SoC) that processed video images for the high-definition action cameras made by GoPro Inc. (NASDAQ: GPRO) and used in drones, but its future success will depend more on supporting the computer vision technology used by self-driving cars.

While computer vision and AI both provide significant opportunities, the question for investors could boil down to which company will be better able to capitalize on them.

Source: Fool.com