Better Artificial Intelligence Stock: Navitas vs. Arm
The Motley Fool
by newsfeedback@fool.com (Dave Kovaleski)February 24, 2026
AI-Generated Deep Dive Summary
The rise of artificial intelligence (AI) has transformed the financial landscape, driving significant gains in technology stocks like Navitas Semiconductor (NASDAQ: NVTS) and Arm Holdings (NASDAQ: ARM). Investors are increasingly turning their attention to these companies as they leverage AI infrastructure advancements. This article delves into whether Navitas or Arm offers a better investment opportunity, considering their recent stock performances and strategic positions in the AI space.
Navitas Semiconductor has emerged as a standout performer, with its stock surging 188% over the past year. Known for its high-performance chip solutions, Navitas is well-positioned to benefit from the growing demand for AI acceleration technologies. The company's focus on cutting-edge semiconductor technology aligns perfectly with the needs of AI-driven applications across industries.
In contrast, Arm Holdings, a leader in computing and graphics IP cores, has shown more moderate growth but remains a formidable player in the AI sector. While its stock performance may not match Navitas' recent gains, Arm's established reputation and extensive intellectual property portfolio provide long-term stability. The company continues to innovate in AI processing units (APUs), ensuring its relevance in an evolving market.
For investors, the choice between Navitas and Arm hinges on factors like risk tolerance and investment goals. Navitas offers high growth potential but comes with higher risks due to its relatively smaller size and volatility. Arm, while more stable, may appeal to those seeking steady returns and exposure to a global leader in AI technology.
This comparison highlights the transformative impact of AI across the semiconductor industry. As both companies continue to develop cutting-edge solutions, they are likely to play pivotal roles in shaping the future of artificial intelligence. Investors should closely monitor their performance and align their portfolios with broader market trends in tech innovation.
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Originally published on The Motley Fool on 2/24/2026