Nvidia (NASDAQ: NVDA) has been on an incredible run in 2024, with the stock up 154%. But that's only good enough for second-best year-to-date performance. Super Micro Computer (NASDAQ: SMCI), often called Supermicro, is actually outperforming it, rising nearly 200% so far this year.

It's holding a fair lead over its rival, but can Supermicro keep up this incredible run? Or is it set to be caught by the seemingly unstoppable engine known as Nvidia?

The investment thesis driving Nvidia higher is the same one that is affecting Supermicro. Nvidia's primary products are graphics processing units (GPUs), which are used by the hundreds or thousands to create incredibly powerful computers used to train artificial intelligence (AI) models. However, connecting these GPUs together so that they can interface properly and not overheat is crucial.

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Source Fool.com