Getting in on the ground floor of the Fourth Industrial Revolution is akin to joining the Wright Brothers for that first historic flight – exhilarating, game-changing, and with limitless skyward potential. And with the AI investment surge just taking flight, discerning investors are eyeing the horizon for these three supersonic AI stocks that are bound to soar in the long run.
The AI Revolution: Stepping into the Next Frontier
Picture a landscape shifting at warp speed, fueled by the momentum of an AI revolution. The data centers are shedding their old skins and embracing a new era of accelerated computing. The era of CPUs is making way for GPUs, mighty engines driving the AI juggernaut forward.
As these GPUs crunch unimaginable data volumes and computations, they beckon the need for seamless communication. Enter the networking equipment – Ethernet, PCI Express, optical interconnects – all witnessing an unprecedented demand surge, set to redefine the tech ecosystem.
Nvidia (NVDA): The AI Vanguard
Stepping into the ring with the delivery of the groundbreaking DGX-1 AI supercomputer to OpenAI in 2016, Nvidia (NASDAQ:NVDA) has emerged as the beacon of AI innovation. The recent unveiling of ChatGPT catapulted this semiconductor giant into the stratosphere of AI marvels.
For the wheels of generative AI to turn, trillions of flops per second are needed. Nvidia swoops in with its cutting-edge GPUs capable of supporting this monumental task. Moreover, the creation of a robust ecosystem comprising chips, systems, software, and networking services has solidified its stance in accelerated computing.
As corporations embark on the AI infrastructure journey, Nvidia’s GPUs are the wind beneath their wings. Data center revenues have skyrocketed from $3.6 billion in Q4 FY2023 to a staggering $18.4 billion in Q4 FY2024. With a 22% quarterly and a jaw-dropping 265% year-over-year revenue surge in the latest quarter, Nvidia stands tall as the undisputed ruler of AI GPUs.
Super Micro Computer (SMCI): Riding the AI Wave
In the grand AI race, Super Micro Computer (NASDAQ:SMCI) emerges as a frontrunner. As generative AI reshapes the server landscape, traditional servers are ushered out, making way for AI-powered counterparts. Super Micro’s servers, configured with AI chips from Nvidia and Advanced Micro Devices (NASDAQ:AMD), have witnessed an unprecedented demand surge.
The company, hailed for manufacturing plug-and-play AI servers, has consistently surpassed revenue expectations. The fiscal quarter that culminated on Dec. 31, 2023, echoed a resounding revenue growth of 103% year-over-year. Notably, the fiscal year 2024 guidance was revised upwards to a range of $14.3 billion to $14.7 billion, indicating a meteoric rise from the earlier $10 billion to $11 billion forecast.
Broadcom (AVGO): Powering the AI Infrastructure
In the bustling AI infrastructure market, Broadcom (NASDAQ:AVGO) stands as a towering giant, fuelling the AI engines that power the future. With a dual product portfolio catering to custom AI accelerators and the necessary network technology, Broadcom is in a league of its own.
Consumer-facing AI behemoths like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) are driving the insatiable demand for Broadcom’s application-specific integrated circuit products and complementary networking technology. In a paradigm shift, Broadcom’s networking revenue soared to $3.3 billion in Q1 FY2024 – an eye-popping 46% year-over-year growth.
Much like a maestro orchestrating a symphony, Broadcom is positioning itself for a resounding finale. As AI revenues barrel past the $10 billion mark, with an upward of 35% annual growth in sight, Broadcom’s reign in the AI infrastructure market seems unassailable.
