AI Stocks NVIDIA and Super Micro Defy Dot-Com Comparisons With Skyrocketing Growth
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NVIDIA (NVDA) and Super Micro Computers (SMCI) are leading AI companies that have seen tremendous stock growth, sparking comparisons to the 2000 dot-com bubble.
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Unlike dot-coms, NVDA and SMCI have real revenues, profits, and margin expansion to justify valuations. NVDA has grown revenue 60% and doubled EBITDA margin.
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NVDA revenue growth is exceptionally rare - only 1 out of 66,000 public companies matched its growth rate over the past 4 years.
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SMCI stock is up 6200% in 5 years, making it an outlier among small caps in terms of earnings growth over that period.
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Despite sky-high valuations, NVDA and SMCI have strong underlying business fundamentals in the high-growth AI industry, though risks remain around sustainability.