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Both stocks have had strong runs in 2024. Let's consider which semiconductor looks like the better buy heading into 2025.

This year has been one of milestones for top tech company Nvidia (NASDAQ: NVDA). Nvidia also won a spot among the elite, with an invitation to join the Dow Jones Industrial Average, and the stock became the best performer on the benchmark for the year.

Nvidia stock looks more reasonable. It currently trades at a price-to-sales ratio of 31 and a price-to-earnings ratio of 55. Both of these companies have a lot to offer investors, especially if demand for AI continues to grow, but looking at both stocks holistically, Nvidia is the better buy.