Missed Out on Nvidia? This Enterprise AI Stock Is Still a Bargain.
While Nvidia's (NASDAQ: NVDA) AI-fueled rally may not be over, it becomes increasingly difficult to justify buying the stock as the GPU maker's valuation soars. With a market capitalization of $2.2 trillion as of midday Wednesday, the stock requires investors to ignore the myriad threats that could unravel the company's dominance of the AI chip market.
The biggest advantage Nvidia has comes from software. CUDA is Nvidia's software toolkit for developing applications that can be accelerated by its GPUs. CUDA has been around for 16 years and has become the de facto standard. As the AI boom got underway, the path of least resistance was Nvidia GPUs and CUDA-powered software.
While there are alternatives to CUDA, there's a tremendous amount of inertia keeping Nvidia's dominance intact. Without this software advantage, competing AI chips from , Intel, and others would be having an easier time winning market share.
Source Fool.com
Advanced Micro Devices Inc. Stock
The stock is one of the favorites of our community with 81 Buy predictions and 1 Sell predictions.
With a target price of 178 € there is a slightly positive potential of 14.23% for Advanced Micro Devices Inc. compared to the current price of 155.82 €.
