Forget Nvidia: Members of Congress Are Scooping Up Shares of Its Core Rival Instead

Nvidia Corp (NVDA:US) stands as a heavyweight in artificial intelligence (AI) with its chip demand soaring and its shares surging by 239% last year and around 60% in 2024. However, it's not the sole AI company drawing investor attention. Congress members, in particular, are showing a preference for its main rival Advanced Micro Devices (AMD:US).

In 2023, Nvidia ranked among the top 10 stocks most sold by lawmakers, a trend continuing into 2024 with sell transactions outweighing buys by more than 2 to 1. Conversely, there's been bipartisan buying interest in AMD, with 11 purchases reported versus three sell transactions so far this year.

While lawmakers aren't mandated to disclose the rationale behind their stock trades, AMD's appeal isn't hard to decipher. Despite lagging behind Nvidia in the AI chip market, AMD aims to gain market share from its competitor, unveiling promising products like the MI300X AI accelerator and Ryzen line of AI chips for PCs.

With both stocks trading at high valuations, there's speculation that AMD could potentially outpace Nvidia's growth over the next five years. As technology firms seek alternatives to reduce dependency, AMD stands as a compelling option if it can deliver comparable performance at a lower cost. While Nvidia may continue to innovate and maintain its market lead, current sentiment shared by some lawmakers favors AMD as the better investment choice.