Could Super Micro Computer Become the Next Nvidia?
Super Micro Computer (NASDAQ: SMCI) and Nvidia (NASDAQ: NVDA) have turned out to be superb investments over the past year thanks to the artificial intelligence (AI)-fueled demand for their products, which has led to a sharp jump in their revenue and earnings.
While shares of Nvidia have gained more than 234% in the past year, Super Micro Computer stock has delivered an even more stunning gain of 855%. Both companies are capitalizing on the booming demand for AI servers although in different ways. Nvidia dominates the market for AI GPUs (graphics processing units) with an estimated share of more than 95%.
Super Micro Computer, on the other hand, makes modular server solutions that are used for mounting AI chips from the likes of Nvidia and other prominent chipmakers. One might argue that Super Micro and Nvidia aren't exactly comparable, but investors should note that both companies are riding on the same catalyst.
Source Fool.com
