How This Chip Company Outperformed Nvidia in the First Half
How did market expectations affect Nvidia's stock performance?
Market expectations had a significant impact on Nvidia's stock performance. As Nvidia continued to exceed analysts' estimates for revenue and earnings in recent quarters, investor expectations for the company's growth rose accordingly. This led to a surge in Nvidia's stock price, with shares nearly doubling in value since the start of 2024. However, with such high expectations, any minor setbacks or disappointments in earnings reports could potentially lead to significant stock movement, as seen in recent trading sessions.
How did Super Micro Computer outperform Nvidia in H1?
Super Micro Computer outperformed Nvidia in H1 due to its torrid artificial intelligence-related growth, stemming from its AI servers which make up over 50% of its revenue and mostly contain Nvidia GPUs. Starting from a lower valuation, Supermicro's stock experienced a significant expansion in valuation multiples, driving its outperformance.
What was Super Micro's stock performance percentage in H1?
Super Micro Computer's stock performance in the first half of the year was a whopping 188%, outpacing Nvidia's 150% growth, dividends included. This significant growth was driven by torrid artificial intelligence-related growth, as demand for Supermicro's AI servers, which make up over 50% of its revenue, took off.