Nvidia (NASDAQ: NVDA) recently showcased impressive financial results, marking yet another quarter of explosive growth. Record-breaking revenues exceeding $22 billion, coupled with substantial triple-digit growth in net income, solidify Nvidia’s position as a dominant force in artificial intelligence (AI) chip technology. The company’s stock has surged approximately 285% over the past year, indicative of its robust future prospects.
Investors seeking to capitalize on Nvidia’s success can explore alternative avenues beyond direct stock ownership. By considering investments in key collaborators such as leading cloud service provider Amazon (NASDAQ: AMZN) and server giant Super Micro Computer (NASDAQ: SMCI), individuals can potentially leverage Nvidia’s growth trajectory to enhance their portfolios.
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AWS – Amazon’s Gateway to AI
Amazon Web Services (AWS) stands out as the global leader in cloud services, significantly contributing to Amazon’s overall profitability. With a strong focus on AI advancements, AWS strategically invests in cutting-edge technology infrastructure to support clients in their AI initiatives. By acquiring shares in Amazon, investors can indirectly benefit from Nvidia’s growth, as AWS incorporates Nvidia’s GPUs in its offerings.
AWS leverages various Nvidia products and services, including the Nvidia AI Enterprise platform, to expedite AI development. Furthermore, the collaboration between AWS and Nvidia continues to expand, with initiatives such as the development of the fastest AI supercomputer driven by Nvidia GPUs. As many enterprises already utilize AWS, the platform serves as a lucrative market for Nvidia’s solutions, potentially translating into substantial revenue growth for Amazon.
Super Micro Computer – Pioneering Custom Solutions
Super Micro Computer specializes in providing servers, storage systems, and customized rack-scale solutions. Embracing a modular approach in product assembly, Supermicro tailors its offerings according to individual customer requirements. The company diligently monitors Nvidia’s product developments, ensuring seamless integration of Nvidia innovations into its product line.
By fostering close relationships with leading chip manufacturers like Nvidia, Advanced Micro Devices, and Intel, Supermicro remains at the forefront of technological advancements. The firm’s emphasis on incorporating cutting-edge chips from industry leaders has driven record demand for its systems, positioning it for substantial revenue growth. Supermicro’s recent financial performance underscores the success of its collaboration with AI chip giants, with revenue projections for the current fiscal year exceeding $14.3 billion.
When analyzing Supermicro’s valuation at 40x forward earnings estimates, the compelling growth prospects in the AI sector make it an attractive investment opportunity.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, and Nvidia. The Motley Fool recommends Intel and Super Micro Computer and recommends various options. The Motley Fool has a disclosure policy.