Both stocks are trading at PE ratio north of 25, so not exactly a traditional value choice. But it is part of many investors' portfolios directly or indirectly through S&P indices.
Nvidia continues to be the industry leader in GPUs and surrounding ecosystem driven by CUDA. The main driver remains data-center AI infrastructure with 68% revenue growth, followed by equally impressive growth in graphics / visualization of 57% revenue growth in their last 10-K statement. Growth hampered by export controls for its chips into China, and increasing in-house silicon from hyperscalers. The recent $13B purchase of HuggingFace also catalyzes further integration and data-center uptake with an open source audience.
Meta continues to grow its advertising revenue, but it is exposed as its sole revenue stream. It is showing promise pivoting away from Reality Labs, which posted a $19.2B operating loss. Meta has invested heavily with capex into AI and data center buildout. It has its own open source AI library called Llama, gaining significant traction. Headwinds continue regarding youth and privacy litigation, including the historic $18B settlement to various US states associated with addiction and harm from Facebook and Instagram use by minors. Some press being made with Muse Spark as a super-intelligence assisting with daily life.
So the question is, would you prefer Nvidia as a value investment for a pipeline of proven winning chips or bet on a Meta turnaround with AI?
Background, write-up and charts here: [https://search10k.com/nvidia-vs-meta-the-same-ai-boom-from-opposite-ends-of-the-supply-chain/](https://search10k.com/nvidia-vs-meta-the-same-ai-boom-from-opposite-ends-of-the-supply-chain/)
