Nvidia, the leading artificial intelligence (AI) chip company, has recently reported impressive growth in revenue and net income, reaching record-breaking numbers. With its stock soaring about 285% over the past year, Nvidia remains a great investment option for those looking to capitalize on its future prospects. However, there are alternative ways to benefit from Nvidia’s growth without directly owning the stock. Investing in companies that work closely with Nvidia, such as Amazon and Super Micro Computer, can provide investors with exposure to Nvidia’s success while diversifying their portfolios.
Amazon, through its cloud service provider Amazon Web Services (AWS), is the world’s leading cloud services provider. AWS offers a wide range of cloud solutions and has recently focused on AI, investing in technology infrastructure and supporting clients in their AI projects. By buying Amazon shares, investors can benefit from Nvidia’s growth as AWS incorporates Nvidia’s graphics processing units (GPUs) in its offerings. AWS also utilizes various Nvidia products and services, including the Nvidia AI Enterprise platform, which accelerates AI development. The collaboration between AWS and Nvidia extends to new projects, such as the creation of the world’s fastest AI supercomputer powered by Nvidia GPUs. Given the widespread use of AWS by many companies, there is a significant revenue growth opportunity for Amazon in the future. Additionally, Amazon’s e-commerce business offers further growth prospects and a solid earnings track record, making it an attractive investment option.
Super Micro Computer is a seller of servers, storage systems, and related products. What sets Supermicro apart is its ability to customize products according to customer needs. The company closely monitors Nvidia’s product development to ensure compatibility and integration of Nvidia’s innovations as soon as they are released. Supermicro also maintains collaborative relationships with other chip companies like Advanced Micro Devices and Intel, allowing it to benefit from the growth of all players in the space. By offering customized products powered by the world’s fastest chips, Supermicro has experienced record demand for systems incorporating Nvidia and other market leaders’ chips. The company’s earnings have surged thanks to its close work with AI chip giants, and it recently reported its first $2 billion quarter. Supermicro predicts further revenue growth in the current fiscal year, making it an attractive investment option.
Investing in Amazon and Super Micro Computer provides investors with exposure to Nvidia’s explosive AI growth without directly owning Nvidia stock. Both companies have strong partnerships with Nvidia and are well-positioned to benefit from the increasing demand for AI-related products and services. Amazon’s AWS is the leading cloud services provider, and its collaboration with Nvidia ensures the incorporation of Nvidia’s GPUs in its offerings. Supermicro’s ability to customize products according to customer needs and its close work with AI chip giants make it a top AI growth stock. Both companies offer investors the opportunity to diversify their portfolios while capitalizing on Nvidia’s success.
In conclusion, Nvidia’s explosive AI growth presents lucrative investment opportunities beyond owning Nvidia stock. Investing in companies like Amazon and Super Micro Computer allows investors to benefit from Nvidia’s growth while gaining exposure to other top-notch businesses operating in different areas. With Nvidia’s strong future prospects and the potential for significant revenue growth, these two stocks offer investors a chance to capitalize on the AI revolution.
