The sale of technology for 2025 has created many opportunities for purchase. Last year, countless assessments of companies have passed through the ceiling technology, making it difficult to hunt. If you are waiting for the right time to jump or add your positions, that time may be now.
Two distinguished companies in particular have witnessed the decline in stock prices so far this year: Palo Alto networks (Nasdaq: panw) and Nafidia (Nasdaq: nvda). The two companies have convincing investment theses at the present time, but one longer with a long -term height.
Before jumping to any stock is a better purchase, it is important first to understand the decisive differences between the business model of each company.
Nvidia is primarily a chips maker produced Graphics processing unitsIt is usually referred to as graphics processing units. Graphics processing units are specialized chips that make many technologies possible – everything from game applications and photo editing to machine learning and artificial intelligence (AI). In short, NVIDIA is a major supplier for the crucial components of a wide range of large and growing industries, which is the most promising industrial intelligence industry today.
Meanwhile, Palu Alto networks can be considered as a cybersecurity security company. Its safety and cloud safety program provides a group of other safety products that aim to protect companies from poor actors. Its collection is impressive, and it features more than 80,000 customers from the institution all over the world, with billions of protected end points.
Both GPU and cyberspace security are increasing the markets. This is evident by evaluating each installment company. NVIDIA shared trade at 20.6 times sales for 14 times sales for Palo Alto networks. But before you think that the Palu Alto networks are the cheapest stocks, it is important to check the growth rates of each work. Wall Street expects NVIDIA will grow more than 4 times Faster than Palo Alto networks in the next quarter. NVIDIA also has much higher profit margins, with the help of its best chips in its customers, especially artificial intelligence agents, above almost every competitive graphics processing unit.
Due to the high growth rates in NVIDIA, the shares are trading with their sales to the front 13 times only – just a small installment for Palo Alto Networks 12.2 times in the front sales evaluation. When it adds its superior profit margins, Nvidia looks like a clear winner today. But there is another reason that NVIDIA makes a great bet for the next few years, or even the next few decades.
NVDA PS ratio Data by Ycharts.
Nvidia is not only riding a wave of artificial intelligence of growth. The company has invested in artificial intelligence early, which means that its chips exceeded the performance of the competing chips for this application several years ago. In fact, the company's launch of CUDA – the structure of its unified devices for its account – was again in 2006 that it can be said that it gave Nvidia Edge that it keeps today when it comes to performing chips and a comprehensive market share.
The main feature of Cuda was that it allowed developers to customize NVIDIA chips easily and quickly for their specific applications. This improves performance, sometimes greatly. More importantly, it establishes these clients in the ecosystem in NVIDIA, which makes it difficult to switch to a competitor's graphics processing units.
The dominant NVIDIA mode in graphics processing units, especially those used in Cloud Applications applications, was not coincidental. Early investments and CUDA seller lock must provide a strong competitive feature that is not usually seen in the developing technology sector quickly. After withdrawing, it appears that the NVIDIA rating, especially compared to other technology cadres like Palo Alto Networks, appears very good. Investors must expect to continue volatility, but now it seems that it is a great time to take a long -term location in a blue chips company targeting one of the largest growth markets in this century: artificial intelligence.
Before buying shares in NVIDIA, think about this:
the Motley Adviser is a lie The analyst's team has just identified what they think 10 best stocks For investors to buy now … Nvidia was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at when Netflix This list was submitted on December 17, 2004 … if you invest $ 1,000 at the time of our recommendation, You will have 461,558 dollars! Or when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 578,035 dollars!
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*The stock consultant dates back from April 4, 2025
Ryan Vanzo He has no position in any of the mentioned stocks. Motley is a lie that has positions in and recommends NVIDIA. Motley recommends a lie of Palu Alto networks. Motley deception has Disclosure.
What are the shares of Nasdak cheaper: Palu Alto or Nafidia networks? It was originally published by Motley Fool