There’s a Lot of Buzz About Nvidia, But Another AI Company Is Even More Profitable in 2024 (With Some Nuances)

Nvidia is a major player in the technology world and the stock market this year. Everyone’s talking about Jensen Huang’s company, and there’s a good reason. However, another company also dedicated to AI is growing even faster than Nvidia: Super Micro Computer, also known as Supermicro.

Some context. Both companies are capitalizing on the AI wave but in different ways.

• Nvidia designs the GPUs dominating the AI market.
• Supermicro creates the optimized servers that host those GPUs.

In detail. The synergy between these companies is key: Supermicro doesn’t compete against Nvidia but complements it. If Nvidia is the chef, Supermicro is the restaurant.

The figures:

• Supermicro has seen a 150% increase so far this year.
• It has a market capitalization of $41 billion.
• Nvidia’s growth stands at 135% in 2024.
• It has a market capitalization of $2.78 billion.

The difference in market capitalization between Supermicro and Nvidia also reflects their contrasting trajectories in recent times. Supermicro has experienced significant growth but still lags far behind Nvidia in terms of company valuation.

On the other hand, Nvidia has been experiencing consistent and steady growth, while Supermicro’s explosive first quarter has been followed by a downturn.

What they have in common. Both companies have seen rapid revenue growth compared to their rivals, a key factor for investors that has propelled their valuations.

Supermicro is growing its revenue five times faster than the industry average, according to financial experts at The Motley Fool. In contrast, Nvidia has been consistently breaking records for several quarters, significantly increasing its revenue and, most importantly, its profit.

This article was written by Javier Lacort and originally published in Spanish on Xataka.

Image | Supermicro

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