Nvidia sells graphics processing units (GPUs) that provide computing power for various uses. More than two decades ago, the main function was to support PC gaming. But what has put the business on the map in recent years has been its GPUs that enable training AI models in massive data centers, now representing the bulk of the chipmaker's sales.

Both stocks have had strong runs in 2024. Let's consider which semiconductor looks like the better buy heading into 2025.

Nvidia Corp.’s stock continued its rally Monday, embodying the red-hot momentum in the artificial-intelligence chip trade so far this year.