Posted 4/5/2024, 12:33:00 PM
Nvidia's AI Dominance Makes It a Better Stock Pick Than Server Maker Supermicro
- Nvidia and Supermicro work together - Nvidia designs superior GPU technology, while Supermicro builds customizable servers to optimize GPU performance
- Supermicro relies more on customization than proprietary technology
- Supermicro has lower margins as a reseller of Nvidia components
- Nvidia trades at a lower valuation based on forward P/E despite higher expected growth
- Nvidia's technological advantage, margins, and valuation make it the better AI stock pick over Supermicro