From Nasdaq: 2024-04-27 04:12:00

Two AI stocks, Nvidia and Super Micro Computer, led the S&P 500 with year-to-date gains of 61% and 166% respectively. Analysts predict significant upside for both stocks, with Rosenblatt raising their price target on Nvidia to $1,400 per share and Loop Capital raising theirs for Super Micro Computer to $1,500 per share. Both companies show strong potential for further growth due to their dominance in data center accelerators and high-performance computing platforms.

Nvidia, known for accelerated computing using GPUs and the CUDA programming model, reported a 265% revenue increase in Q4 2024. Its software and services business reached a $1 billion annual revenue run rate. With analysts forecasting 35% annual EPS growth over the next 3-5 years, current valuation at 69.3 times earnings may be high for potential shareholders.

Super Micro Computer, specializing in high-performance computing platforms, had a 103% revenue increase in its fiscal Q2 2024. Wall Street expects 50% annual EPS growth over the next 3-5 years, making its current valuation at 61.5 times earnings reasonable. Despite a recent stock dip due to skipped preliminary results for Q3, Supermicro remains well positioned to benefit from increased AI spending.

Consideration of other top stocks may be wise before investing in Nvidia. The Motley Fool Stock Advisor team recently highlighted 10 top stocks that could lead to significant returns, with Nvidia not making the list. With a 110% return compared to the S&P 500 since 2002, Stock Advisor provides expert guidance on building a strong portfolio for long-term success. *Stock Advisor returns as of April 22, 2024.



Read more at Nasdaq: Meet the 2 Best S&P 500 Stocks of 2024. They Could Soar Another 69% and 91%, According to Certain Wall Street Analysts.