NVIDIA, a leading chip maker, has seen significant growth in recent years due to the increasing demand for artificial intelligence (AI) technology. The rise of OpenAI’s ChatGPT and the heavy investment in AI by companies have contributed to NVIDIA’s success. The company’s stock price has surged by around 238% in the last 12 months.
However, there are other large-cap stocks that have outperformed NVIDIA in terms of returns in the past year. Super Microcomputer and Carvana are two such examples. Super Microcomputer’s stock has seen a 445% gain, driven by the increasing demand for servers and computing power for AI development. The company’s revenue has tripled to nearly $3.9 billion, with a significant increase in profitability as well. Super Microcomputer’s lower valuation compared to NVIDIA makes it an attractive investment option, with a forward price-earnings ratio of 25.
On the other hand, Carvana has experienced a remarkable 876% increase in its stock price over the past year. Despite facing challenges in the past, including a significant drop in stock value and high short interest, Carvana has made a comeback with improved financial performance. The company posted a surprise profit of $49 million in the last quarter, with sales up by 17% year-over-year. However, Carvana still faces risks and uncertainties, especially in light of a possible recession and its low profit margin of 1.6%.
Investors should exercise caution when considering investments in Carvana due to its volatile nature and high short interest. It may be prudent to wait and monitor the company’s performance over the next few quarters before making a decision. Overall, both Super Microcomputer and Carvana have shown impressive growth, but each comes with its own set of risks and considerations for investors.
In conclusion, NVIDIA’s success in the AI industry has driven substantial growth in its stock price, but other companies like Super Microcomputer and Carvana have also delivered exceptional returns. Each of these companies presents unique opportunities and challenges for investors, requiring careful evaluation before making investment decisions.
Article Source
https://www.fool.com/investing/2024/05/25/large-cap-stocks-doubled-nvidia-return-year/
