HomeMarket NewsUnleashing the Underdog Heroes: Three Stocks Poised to Outshine Nvidia’s Growth Trajectory

Unleashing the Underdog Heroes: Three Stocks Poised to Outshine Nvidia’s Growth Trajectory

Actionable Trade Ideas

always free

Nvidia (NASDAQ:NVDA) has been a blazing comet in the tech skies, soaring with over 220% returns in the past year, riding the AI wave. However, cracks in its supremacy are beginning to show, with notable investors starting to cash in their chips. The once solitary trailblazer in the GPU realm is now finding itself amidst a swarm of competitors, notably Intel, ready to pounce. The battle for market dominance is heating up, and Nvidia might soon feel the squeeze. In this battleground of tech giants, where does one look for the next big thing?

Instead of hitching your wagon to fading stars, a prudent move might be to explore alternatives that offer robust growth potential. Here are three underdogs ready to defy the odds and stake their claim in the competitive tech arena.

Ascending with Advanced Micro Devices (AMD)

Advanced Micro Devices, Inc. (AMD) logo in the building at CNE in Toronto. AMD is an American semiconductor company.

Source: JHVEPhoto / Shutterstock.com

Advanced Micro Devices (NASDAQ:AMD) has emerged as a formidable force in the tech landscape, emerging as the go-to alternative in both the GPU and CPU markets, giving Nvidia and Intel a run for their money. The company’s data center division, a linchpin of its operations, oversees a stellar array of products including server CPUs, AI accelerators, graphic processing units, and accelerated processing units.

Innovations like AMD’s groundbreaking Instict MI300X GPUs are making waves in the market, with tech giant Microsoft already onboard to integrate the chip into its accelerated virtual machines. Despite a minor setback in 2023 with revenue and gross profits dipping, AMD retains the resilience to bounce back and reclaim lost ground, a trait evidenced by past market share coups.

Riding high on the success of Ryzen, a game-changer that bolstered AMD’s CPU coverage from meager proportions to nearly 40% within a short span, the company is inching towards AI supremacy by unveiling stellar products like the Ryzen 8040 Series mobile CPU and the Ryzen 8000G Series for desktops, both powered by neural processing units for enhanced AI acceleration.

While AMD may not be the immediate victor in a clash with Nvidia today, its growth trajectory paints a promising future, beckoning investors seeking the next big breakout star.

Elevating with Micron Technology (MU)

An outside image of a Micron Technology, Inc. headquarters. MU stock. momentum stocks to buy soon

Source: Charles Knowles / Shutterstock.com

While GPUs and CPUs hog the limelight, the battleground of tech supremacy extends to memory chips, a vital cog in the AI machinery. Micron Technology (NASDAQ:MU) is not just a player but a leader in the domain of memory and storage solutions.

The Hail Mary pass from Micron comes in the form of its groundbreaking HBM3E memory, a revolutionary product that is driving AI growth with its lightning-fast data access speed of 1.2 terabytes per second, all while operating at a 30% lower power consumption than its counterparts. Demand for HB3ME has been so overwhelming that its supply for 2024 is already booked out, with most of the 2025 stock in high demand.

Celebrating a triumphant Q2 showing with revenue hitting $5.82 billion—substantially higher than the same quarter the previous year—Micron is on a winning streak. With GAAP net income rebounding from a loss of $2.31 billion to a solid $793 million under CEO Sanjay Mehrotra’s adept leadership, the company is poised for substantial growth propelled by insatiable AI demand and the semiconductor sector’s tight supply dynamics.

Micron’s resurgence post-China ban debacle and its sterling performance underscore its potential as a beacon of growth, offering investors a compelling proposition as they seek to navigate past Nvidia’s looming shadow.

Thriving with Super Micro Computer (SMCI)

Super Micro Computer Inc: Riding the AI Wave to Success

Super Micro Computer Inc: Riding the AI Wave to Success

In this photo illustration, the Super Micro Computer, Inc. (SMCI) logo seen displayed on a smartphone screen

Source: rafapress / Shutterstock.com

Some companies ride the tech wave, while others predict and create the swells. Meet Super Micro Computer (NASDAQ:SMCI), affectionately known as Supermicro, a server specialist primed for the big leagues, armed with application-optimized servers and storage systems. Though dwarfed by the likes of Dell Technologies and Hewlett Packard Enterprise globally, Supermicro’s **long-standing union with Nvidia for AI servers ushers in a tide of growth.

A Symphony of Optimization

Beneath the surface, Supermicro dances to its own tune. Some may argue it’s merely hitching a ride on the GPU-giant’s bandwagon, but I beg to differ. Its servers, fine-tuned for applications, coupled with Nvidia GPUs, orchestrate a melodic blend. Together, these elements fine-tune pre-trained models, enhancing decision-making and response times for AI inference solutions.

A Financial Crescendo

The crescendo emerges in their latest quarterly symphony, boasting a 103% year-over-year (YOY) surge in net sales, totaling a harmonious $3.66 billion. Not content with hits already playing, SMCI’s net income crescendoed to $296 million, nearly doubling that of the previous year. CEO Charles Liang attributes this financial opus to the mounting thirst for AI computer platforms and Total IT Solutions.

Looking Beyond the Horizon

Casting an eye to the horizon, SMCI projects fiscal year 2024 revenues to harmonize between $14.3 billion and $14.7 billion, tuning higher notes from prior announcements. With this crescendo of growth and a robust line of AI products, it’s no wonder that investors view SMCI as a seasoned performer, offering symphonies of growth that make even Nvidia’s offerings seem mundane.

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.