The technological sale of 2025 has created several purchasing opportunities. Last year, assessments for countless technological companies crossed the roof, which makes hunting hunting difficult. If you were waiting for the right time to jump or add to your positions, now could be that moment.
Two emblematic companies in particular have seen their prices fall so far this year: Palo Alto networks (Nasdaq: Panw) And Nvidia (Nasdaq: NVDA). The two companies have convincing investments at the moment, but we are higher with a larger long -term advantage.
Before jumping in which actions are a better purchase, it is important to first understand the critical differences between the business model of each company.
Nvidia is mainly a manufacturer of fleas that produces Graphic processing unitscommonly called GPU. GPUs are specialized chips that make a ton of technologies possible – everything, games and photo publishing with automatic learning and artificial intelligence applications (IA). In a word, Nvidia is a large supplier of critical components with a wide range of large and growing industries, the AI industry being the most promising today.
Palo Alto networks can be considered a cybersecurity company. Its software offers network security, cloud security and a multitude of other security products intended to protect companies from bad players. Its product suite is impressive, with more than 80,000 corporate customers worldwide, with billions of protected ending points.
GPU manufacturing and cybersecurity increase the final markets. This is attested by the premium evaluation of each company. NVIDIA shares are negotiated at 20.6 times sales against 14 times the sales of Palo Alto Networks. But before you think that Palo Alto Networks is the cheaper stock, it is important to check the growth rates of each company. Wall Street analysts expect Nvidia to develop more than 4 times Faster than Palo Alto Networks next quarter. NVIDIA also has much higher beneficiary margins, helped by its best class chips than customers, in particular AI customers, ask above almost all competing GPUs.
Due to higher NVIDIA growth rates, actions are negotiated at only 13 times the term sales – only a small premium for sales enhancement of 12.2 times the networks networks. When you add its much higher beneficiary margins, Nvidia looks like the clear winner today. But there is another reason why Nvidia is an excellent bet for the coming years, or even the next decades.
NVDA PS ratio data by Ycharts.
Nvidia is not content to overcome the wave of AI to growth. The company has invested early in AI, which means that its chips have exceeded the performance of competing chips for this application many years ago. In fact, it was the launch by Cuda’s company – its unified proprietary calculation system architecture – in 2006, which undoubtedly gave Nvidia the advantage it maintains today with regard to flea performance and the global market share.