Better Artificial Intelligence (AI) Stock for 2025: Nvidia vs. Microsoft
Nvidia (NASDAQ: NVDA) and (NASDAQ: MSFT) are pioneers in artificial intelligence (AI) as both companies have played central roles in bringing this technology mainstream.
While Microsoft-backed OpenAI kicked off the AI craze when it launched the highly popular ChatGPT in November 2022, the chatbot may not have seen the light of the day without Nvidia's graphics processing units (GPUs), which were used for training the large language model (LLM) powering ChatGPT. As other major tech giants joined the AI race, the demand for Nvidia's chips went through the roof, and sent its revenue and bottom line soaring.
Meanwhile, the impact of AI on Microsoft's business has been gradual. The company is spending billions to build its AI data center infrastructure -- benefiting Nvidia in the process -- and believes its AI-focused investments will "support monetization over the next 15 years and beyond." This explains why Nvidia stock has outperformed Microsoft's by a massive margin in the past couple of years.
Source Fool.com
Microsoft Corp. Stock
The stock is one of the favorites of our community with 105 Buy predictions and 3 Sell predictions.
With a target price of 459 € there is a slightly positive potential of 15.84% for Microsoft Corp. compared to the current price of 396.25 €.
