A stock that has climbed more than 1,700% is not usually described as a bargain. Yet that is the argument at the center of a new comparison of the two biggest names in artificial intelligence.
According to The Motley Fool, whose analysis was also carried by The Globe and Mail and MSN, "one could argue that Nvidia is the most surprising value stock in existence today." The reasoning: since hitting a low in the fall of 2022, Nvidia shares have risen by more than 1,700% as demand for the company's AI accelerators — the specialized chips that train and run large AI models — has surged.
The piece frames the question as a head-to-head between two "tech and AI giants," as the MSN summary puts it: Microsoft, the software incumbent that has woven AI across its cloud and productivity businesses, versus Nvidia, the chipmaker whose hardware underpins much of the boom.
The distinction being drawn is between price and value. A share price can rise enormously and still look reasonably priced if the company's profits have grown even faster. That is the case investors make for Nvidia — and the reason a stock up four figures in percentage terms can end up in a conversation about value rather than froth.
The source items here are headlines and summaries rather than a full breakdown, so the specific valuation multiples, revenue figures and verdict behind the comparison are not detailed in the material available.
Why it matters: Microsoft and Nvidia together account for a large share of the market's AI exposure, so how investors judge their value shapes retirement accounts and index funds far beyond the people actively picking either stock.