Investors have been buying semiconductor stocks hand over fist in recent months as this sector is primed to benefit big time from the proliferation of artificial intelligence (AI), which is not surprising as semiconductors are enabling tech giants to train AI models of all sizes.

Nvidia has been an early winner in this market. The computing power of its graphics processing units (GPUs) has been harnessed by multiple companies to train large language models (LLMs), including ChatGPT. As a result, shares of Nvidia have simply taken off over the past year on the back of eye-popping growth in the company's revenue and earnings.

However, there is another company that's playing a central role in the AI chip market -- Arm Holdings (NASDAQ: ARM). Assuming you have $1,000 in investible cash right now after paying your bills, clearing high-interest debt, and saving for difficult times, it may be a good idea to put that money into Arm. Let's look at the reasons why.

Continue reading

Source Fool.com