Nvidia and Supermicro: Complementary Tech Giants With Differing Valuations
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Nvidia designs GPUs that are widely used for AI model training, while Supermicro makes servers to house groups of GPUs for clients. The companies complement each other.
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Nvidia has superior, differentiated technology with its GPUs, while Supermicro relies more on customization and industry knowledge.
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Supermicro operates on lower margins as a GPU reseller, while Nvidia controls GPU pricing.
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Nvidia's valuation looks more reasonable based on forward P/E ratios. Supermicro's stock price has soared and future expectations are very high.
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Though Supermicro will likely continue to perform well, Nvidia seems to be the better option given its technology leadership and lower valuation expectations.