Though the chipmaker's revenue and earnings crushed expectations last quarter and its guidance exceeded expectations, investors seem concerned about the potential pressure on Nvidia's margins, thanks to the ramp up of its Blackwell artificial intelligence (AI) processors, as well as the deceleration in its top-line growth.

Nvidia has completed its acquisition of Run:ai, a software company that makes it easier for customers to orchestrate GPU clouds for AI.

Nvidia stock looks more reasonable. It currently trades at a price-to-sales ratio of 31 and a price-to-earnings ratio of 55. Both of these companies have a lot to offer investors, especially if demand for AI continues to grow, but looking at both stocks holistically, Nvidia is the better buy.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $839,670!* Stock Advisor provides investors with an

Nvidia announced plans to acquire Run:ai, officially Runai Labs Ltd, in April. TechCrunch reported at the time that the deal was worth $700 million. Run:ai previously raised $118 million in venture funding from Tiger Global and other investors.

Nvidia is rolling out Blackwell, its next-generation AI chip architecture. Meanwhile, Broadcom is chasing what could be a $90 billion opportunity by 2027.

It’s been a record-breaking year for artificial intelligence darling Nvidia’s stock, with analysts overwhelmingly bullish about the year to come.

Both stocks have had strong runs in 2024. Let's consider which semiconductor looks like the better buy heading into 2025.

The most powerful artificial-intelligence systems need a network to work their wonders. That’s a plus for Broadcom, Marvell, and others.

The European Commission granted unconditional approval to Nvidia’s $700 million bid for Run:ai, which helps developers optimize infrastructure for AI, earlier in December after saying in October that the deal would require EU antitrust clearance.

The stock market ended a strong 2024 on a weak note. Here's what investors should do now. Tesla deliveries are on tap.