By Geoffrey Seiler
Publication Date: 2026-04-03 22:25:00
The artificial intelligence (AI) boom is creating massive winners, but not every stock riding this wave will deliver the same type of returns for investors.
Nvidia (NVDA +0.87%) and Advanced Micro Devices (AMD +3.47%) are two of the biggest names powering the AI revolution, and both are seeing explosive demand for their chips. While the AI supercycle may be big enough for both companies to thrive, one stock still stands out as the better buy right now.
The reason comes down to how each company is positioned within the AI ecosystem and how much of that opportunity is already priced into their stocks.
Image source: The Motley Fool.
Nvidia: The king of AI infrastructure
Nvidia has been the biggest winner of the AI infrastructure build-out thus far. The company has seen massive growth over the years, as its graphics processing units (GPUs) are the primary chips used to train the large language models (LLMs) that power AI. This has propelled its revenue to go from less than $17 billion in fiscal 2021 (ended January 2021) to $216 billion in fiscal 2026. Along the way, Nvidia has become the largest company in the world with an over $4 trillion market cap.
Nvidia’s dominance in AI model training stems from its CUDA software platform, which is where most foundational AI code has been written and optimized for its chips. This has helped it establish about a 90% market share in the GPU space. However, the company is not resting on its laurels and has been busy positioning itself…