Nvidia Leads Booming AI Chip Market, But Arm Holdings Gains Traction as Alternative
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Nvidia dominates the fast-growing AI chip market with over 90% market share, leading to tremendous growth in revenue and earnings.
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Strong demand and pricing power for Nvidia's AI chips is expected to drive continued growth. Analysts forecast Nvidia's data center revenue to reach $280B by 2027.
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Arm Holdings licenses chip IP and architecture to manufacturers. More companies are using Arm's technology to develop AI chips.
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Arm's revenue pipeline has expanded significantly, with remaining performance obligations up 38% year-over-year.
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Nvidia trades at a cheaper valuation despite stronger growth. It looks like the better AI investment option right now.