ARM vs. AMD: Which AI Chip Stock is a Better Buy?

Artificial intelligence (AI) is still driving the stock market in 2024, and specialized semiconductors remain a key piece of the computing architecture necessary to drive this new wave in tech. Amid soaring demand for AI chips, the exponential growth in names like Nvidia (NVDA) has been a dominant storyline - but as NVDA stock trades above $900 per share, it's worth taking a look at other investment opportunities among AI chip stocks. 

That brings us to ARM Holdings (ARM), which just emerged from its post-IPO lockup period, and longtime Nvidia rival Advanced Micro Devices (AMD), which offers solutions for everything from AI to gaming. As investors attempt to find “the next Nvidia,” here's a closer look at the growth forecasts for ARM and AMD, their current valuations, and what Wall Street analysts are expecting for both stocks.