Nasdaq(NDAQ) The Motley Fool·2025-06-07 11:30Group 1: Nvidia - Nvidia is positioned at the center of the AI revolution with a strong business model and strategy, making it a must-own stock for AI investors [2] - The company holds a dominant 90% market share in data center GPUs, which are essential for AI model training and execution [3][9] - Nvidia enjoys industry-leading gross margins of around 70%, significantly higher than competitors like Intel, which have margins around 30% [4] - Despite a high price-to-sales ratio of 23, Nvidia's shares are justified by the expected growth of the AI market at over 30% per year through 2033 [6] Group 2: Intel - Intel has struggled with poor acquisitions and inadequate investment in AI, resulting in a stagnating business and low profitability [8] - The company holds only about 1% market share in data center GPUs, highlighting its significant disadvantage compared to Nvidia [9] - Intel's shares trade at a low valuation of 1.6 times sales, which reflects its lower profitability and sales growth compared to Nvidia [10] - Despite challenges, Intel could potentially compete in niche segments of the AI market and on price, given Nvidia's premium pricing and supply shortages [11] - The current low valuation and minimal expectations for Intel may present an attractive opportunity for patient investors willing to take on risk [12]