This Incredibly Cheap Artificial Intelligence (AI) Stock Is Crushing Nvidia in 2024 With 50% Gains. It Could Soar Another 85%.

If you’re looking to buy a top artificial intelligence (AI) stock right now, Nvidia is likely to be one of the first names that comes to mind. That’s not surprising. Its dominance in the AI chip market has been driving outstanding top- and bottom-line growth for the company.

The good part is that Wall Street and investors are positive about Nvidia’s prospects in 2024 and beyond as the AI chip market gains steam. This explains why Nvidia stock has already risen 20% in 2024. However, Nvidia’s solid start to the year on the stock market has been eclipsed by Super Micro Computer (NASDAQ: SMCI), which has already clocked eye-popping gains of nearly 50% this month.

Let’s look at the reasons why shares of Supermicro — as it’s more commonly known — have been soaring and why investors should consider buying it hand over fist straight away.

Supermicro’s updated guidance is stellar

In a business update provided by Supermicro on Jan. 18, the company announced significantly upgraded guidance for the second quarter of its fiscal 2024 (which ended on Dec. 31, 2023). The company — known for providing modular server solutions, which are in solid demand as they are used for deploying AI chips — is now anticipating fiscal Q2 revenue to land at $3.62 billion at the midpoint of its guidance range.

It was earlier forecasting $2.8 billion for the previous quarter, which means that it has increased its revenue estimate by almost 30%. Additionally, Supermicro is expecting its adjusted earnings to land between $5.40 and $5.55 per share, up significantly from the earlier range of $4.40 to $4.88 per share. The updated guidance suggests that Supermicro’s revenue is set to double on a year-over-year basis, while its non-GAAP (adjusted) earnings would increase 68% from the same period last year.

The big increase in Supermicro’s guidance and the impressive year-over-year growth that it is set to deliver was rewarded with a sharp jump in the company’s stock price. But it is worth noting that…