Nvidia Stock vs. Arm Stock: Wall Street Says Buy One and Sell the Other
Grand View Research forecasts artificial intelligence (AI) chip sales will grow at 29% annually through 2030. Semiconductor companies Nvidia (NASDAQ: NVDA) and Arm Holdings (NASDAQ: ARM) are major players in that market, and shares have rocketed 166% and 100%, respectivley, year to date. But most Wall Street analysts expect the stocks to move in opposite directions over the next year.
Going forward, Nvidia and Arm should benefit as businesses continue to build out their AI infrastructure, but that does not necessarily make them good investments. Here are the important details.
Nvidia holds 98% market share in data center graphics processing units (GPU), chips used to accelerate computationally demanding workloads like training machine learning models and running artificial intelligence (AI) applications. That dominance is more than a decade in the making. In 2006, Nvidia introduced its CUDA programming model, which has evolved into an unmatched ecosystem of software development tools for GPU programmers.
Source Fool.com
