Nvidia's Dominant GPUs Make It a Superior AI Investment Over Server Maker Supermicro
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Nvidia makes the GPUs to power AI systems, while Supermicro assembles servers to house these GPUs. Both are "pick and shovel" AI plays.
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Nvidia GPUs are superior and essential for AI workloads, while Supermicro faces more competition in servers.
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Supermicro stock has outperformed on valuation, but now seems overpriced compared to Nvidia.
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Nvidia has far higher profit margins and controls the key AI product (GPUs).
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Nvidia looks to be the better long-term AI investment today based on competitive position, profits, and valuation.