1 Artificial Intelligence (AI) Stock to Buy Now That Could Soar Like Nvidia

With its shares up 245% year to date, Super Micro Computer (NASDAQ: SMCI) is one of the few tech stocks that has outperformed (NASDAQ: NVDA) (up 211%) in 2023. But despite its big rally, the hardware company still trades at a sharp discount to its larger rival, leaving more room for continued upside as it benefits from a surge in artificial intelligence-related (AI-related) demand. Let's dig deeper to find out why shares are a buy.

Founded in 1993, Super Micro is a California-based hardware company specializing in energy-efficient computer servers and storage systems for enterprise clients. On the surface, it has a lot of similarities to Nvidia. Both companies started in Silicon Valley in the same year and stand to benefit from the increasing adoption of generative AI, which often relies on the data center infrastructure they provide.

Nvidia's graphics processing units (GPUs), like the H100 or A100, are ideal for AI training because they excel at performing multiple tasks simultaneously. However, Super Micro's energy-efficient servers excel at handling these demanding AI workloads as cheaply as possible. More importantly, the company partners with Nvidia to use its GPUs to build what it calls the "broadest selection of Nvidia-Certified systems" for AI infrastructure, including products based on Nvidia's new H100 chip. So far, the new business opportunity is boosting operational results.

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Source Fool.com