Missed Out On Nvidia's Run-Up? My Best Under-the-Radar AI Stock to Buy and Hold

If you missed out on Nvidia's (NVDA) impressive run-up in the past year, don't worry – there are still plenty of opportunities to capitalize on the AI boom. While Nvidia's stock price has surged by 225% thanks to strong demand for its AI-focused graphics processing units (GPUs), there are other AI hardware stocks that are well-positioned to benefit from the growing demand for AI servers, memory chips, and custom chips. Here's a closer look at one under-the-radar AI stock to consider: Super Micro Computer (SMCI).

Super Micro Computer is a leading provider of server infrastructure, specifically designed for running AI workloads. The company's AI-optimized servers are in high demand, as the adoption of AI applications continues to grow. This has led to a sharp increase in Supermicro's revenue and earnings, with the company reporting a 100% jump in earnings per share (EPS) in its most recent quarter.

Despite Supermicro's impressive growth, the stock still trades at an attractive sales multiple of just 5.6, lower than the Nasdaq-100 Technology Sector index's average price-to-sales ratio of 7.3. This indicates that the market may not fully appreciate the company's growth potential.

Investors looking for an under-the-radar AI stock to buy and hold should consider Super Micro Computer. The company's AI-optimized servers are in high demand, and its attractive valuation makes it an appealing investment opportunity. As the AI market continues to grow, Supermicro is well-positioned to benefit from the increasing need for AI-optimized server infrastructure.

In addition to Super Micro Computer, there are other AI hardware stocks worth considering, such as:

1. Dell Technologies (DELL): Dell is another server manufacturer benefiting from the growing need for AI-optimized servers. The company's sales multiple of just 0.9 makes it an attractive option for value investors.
2. Applied Digital Corporation (APLD): Applied Digital is a U.S.-based provider of advanced digital infrastructure, designed to support high-performance computing (HPC) and AI-driven applications. The company's recent acquisition of Xilinx has expanded its capabilities in the field of adaptive computing, further differentiating it from Nvidia.
3. InterDigital, Inc. (IDCC): InterDigital is a global research and development company specializing in wireless, video, and AI technologies. The company is developing AI and machine learning solutions to optimize wireless systems for 5G and creating deep learning-based video compression.
4. Innodata, Inc. (INOD): Innodata is a global data engineering company that provides AI-enabled software platforms and managed services for data annotation – the process of labeling or tagging data such as text and images to make it understandable for machine learning models and improve their prediction accuracy.

These AI hardware stocks offer investors opportunities to capitalize on the growing demand for AI servers, memory chips, and custom chips. By considering these under-the-radar AI stocks, investors can still benefit from the AI boom, even if they missed out on Nvidia's impressive run-up.




Source: TradingView

In conclusion, while Nvidia's stock price has surged by 225% in the past year, there are still plenty of opportunities to capitalize on the AI boom. Investors looking for under-the-radar AI stocks to buy and hold should consider Super Micro Computer, Dell Technologies, Applied Digital Corporation, InterDigital, Inc., and Innodata, Inc. These AI hardware stocks are well-positioned to benefit from the growing demand for AI servers, memory chips, and custom chips, and offer investors a chance to capitalize on the AI boom even if they missed out on Nvidia's impressive run-up.