Nvidia, in contrast, has nearly everything AI investors want. It's profitable, it has plenty of room to grow as AI investments expand, and its shares are relatively well priced with a forward price-to-earnings ratio of 34, compared to the tech-heavy Nasdaq-100 's 26.4. For all of those reasons, Nvidia looks like the far better AI stock right now.

Since the start of 2023, Nvidia 's (NASDAQ: NVDA) stock has gained an astronomical 906% as of the time of writing. It's also right around its all-time high right now, but these two facts may scare some investors off.

Nvidia stock was crushed yesterday following reports that Chinese AI start-up DeepSeek developed an AI model that delivered comparable results to existing