The rally in artificial intelligence (AI) stocks greatly benefited Nvidia (NASDAQ: NVDA). The stock is up more than 200% since the beginning of the year and sells close to all-time highs.

Unfortunately, investors have likely missed the rally in this semiconductor stock. At a P/E ratio of 110, Nvidia shares have become expensive, making it more challenging to profit from this stock. But Advanced Micro Devices (NASDAQ: AMD) has begun to target its AI clients, and with AMD's ability to compete against Nvidia, it is arguably a low-cost alternative for investing in this industry.

AMD's decision in the middle of the last decade to focus on CPUs and GPUs has led to its most successful performance in the stock's more than 50-year history. The company has taken market share from Nvidia within specific niches in the GPU market. Moreover, becoming the chip provider of choice for the Microsoft Xbox and Sony PlayStation gaming consoles has made it a force in gaming.

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Source Fool.com