Super Micro Computer (SMCI) or Nvidia (NVDA)? Which Would YOU Buy? One Will 3X the Other in 2024
The video discusses the comparison between buying shares of Nvidia and Super Micro Computer Inc. based on fundamentals, technicals, and sentiment analysis, concluding that Super Micro Computer Inc. is the preferable option due to positive sentiment and potential for growth. Price targets and potential buying points for Super Micro Computer Inc. are also provided.
[00:00]( • Super Micro Computer (SMCI) or Nvidia... ) The video discusses whether it is better to buy one share of Nvidia or Super Micro Computer Incorporated based on fundamentals, technicals, and sentiment analysis.
Chris asks the viewers which stock they would choose if given $1,000.
The analysis considers three components: fundamentals, technicals, and sentiment.
Super Micro Computer Incorporated is described as a "chassis company" rather than a chip company.
[03:21]( • Super Micro Computer (SMCI) or Nvidia... ) Super Micro Computer (SMCI) has technology that enhances AI capabilities with better cooling features in their servers, making them attractive to companies like Microsoft, Amazon, and IBM.
SMCI and Nvidia are the two core companies in the AI industry.
SMCI's revenue growth on a year-over-year basis is 200%.
SMCI missed on earnings last week.
[06:46]( • Super Micro Computer (SMCI) or Nvidia... ) The company confirmed the earnings date but did not provide any hints on revenue, causing the stock to sell off.
The company confirmed the earnings date as April 29th but did not disclose the revenue.
The stock sold off due to the lack of revenue hints.
In the past, the company had confirmed earnings dates and provided sneak peeks at revenue, which would boost the stock.
The market reacted by discounting the stock for a worst-case scenario, expecting a miss on revenue or earnings per share.
Earnings per share hit, but revenue was light.
The CEO of Super Micro Computer mentioned having $25 billion waiting, indicating a need for chips.
The stock value dropped to $700 after the earnings report.
Nvidia's earnings are expected on May 22nd, which may impact the market.
[10:11]( • Super Micro Computer (SMCI) or Nvidia... ) Nvidia's stock has been correcting and experiencing a technical correction, with shares coming down more than 10%.
Super Micro Computer has outperformed Nvidia three times.
There is a little bit of AI fatigue in the market, with investors getting tired of waiting for revenue from AI services.
The market has seen some selling pressure due to uncertainty about interest rates and concerns about a potential bubble in the AI space.
[13:35]( • Super Micro Computer (SMCI) or Nvidia... ) The market is pricing Nvidia for perfection, but sentiment and crowded trade are the deal breakers between Nvidia and super micro computer.
Market is pricing Nvidia for perfection, with a floor around $800 level.
Technicals give a bullish grade to both Nvidia and super micro computer.
Sentiment and crowded trade are the deal breakers between the two stocks.
Wall Street analysts recommend Nvidia as a buy, making it the most recommended stock.
[16:59]( • Super Micro Computer (SMCI) or Nvidia... ) SMCINVDA is considered an undiscovered stock with potential for growth, as more analysts are starting to cover it.
SMCINVDA is a new company that is still in the discovery phase.
The number of analysts covering SMCINVDA is expected to increase, which may attract more investors.
Unlike NVIDIA, SMCI is not facing significant selling pressure, making it easier to find an equilibrium price.
There is more downside risk in NVIDIA's chart compared to SMCINVDA.
[20:23]( • Super Micro Computer (SMCI) or Nvidia... ) Chris is bullish on Super Micro and Nvidia stocks, with a target price of $1,500 for Super Micro and $800 for Nvidia.
Chris believes that the Revenue Miss based on the chips not being available held the stock back.
They suggest buying more shares at round numbers like $700, $600, and $500.
Chris plans to dip into the options market and buy long-term calls on Super Micro and Nvidia.
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