From Nasdaq: 2024-05-10 04:45:00

Nvidia (NASDAQ: NVDA) and Super Micro Computer (NASDAQ: SMCI) have seen massive gains in the past year due to high demand for AI hardware. Nvidia’s stock has tripled, while Super Micro’s has surged 474%. Both companies are expected to continue their success, dominating the AI chip market. Nvidia’s strong product roadmap and revenue growth forecast make it a promising investment.

Nvidia stands out in the AI chip market with its GPUs, capturing over 90% of the AI chip market share. The company’s revenue forecasts are impressive, with expectations to triple in just three years. Nvidia’s next-generation Blackwell B200 GPU is expected to maintain its dominant position in the AI chip market. With a strong product roadmap and market dominance, Nvidia is poised for continued growth and success.

Super Micro Computer is a key player in the AI server market, where it controls more than half of the market share. The company’s revenue growth has been substantial, tripling in the past year to $3.85 billion. Analysts expect Super Micro to double its revenue in the next two years, with potential for a 124% increase in market cap. Super Micro’s stock is trading at a discount to the U.S. technology sector’s average sales multiple, making it an attractive investment opportunity.

Investors looking to buy AI stocks may find more upside potential in Super Micro Computer compared to Nvidia. Super Micro’s lower sales multiple and faster earnings growth rate make it an appealing option for investors seeking a promising investment in the AI market. With a focus on the AI server market and strong revenue growth forecasts, Super Micro’s stock could deliver strong gains in the coming years.



Read more at Nasdaq: Better Artificial Intelligence (AI) Stock: Nvidia vs. Super Micro Computer