Better Artificial Intelligence (AI) Stock: Nvidia vs. AMD

Artificial intelligence (AI) chip stocks are having a torrid time on the market in 2025, and that's not surprising. The sector has been hit hard by multiple headwinds of late, such as the viability of the huge sums being spent by tech giants on beefing up AI hardware and the growing concerns about a possible economic downturn in the U.S.

This explains the 10% decline in the PHLX Semiconductor Sector index so far this year. Not surprisingly, two of the sector's key components -- Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) -- have also witnessed sharp declines in their share prices in 2025. What's worth noting is that both these semiconductor stocks are benefiting from the growing adoption of AI, which is evident from their latest financial results.

But if you have to choose one of these two AI stocks for your portfolio right now, which one should it be? Let's find out.

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Source Fool.com