Super Micro Computer (SMCI -0.15%) and Meta Platforms (META 0.16%) are two Nasdaq stocks that could surpass Nvidia in the race for AI-related gains over the next five years. Both companies have shown impressive growth and have promising fundamentals that could lead to substantial stock price appreciation.
Super Micro Computer, a manufacturer of AI server solutions, has seen its stock price soar by 505% in the past year, outperforming Nvidia. The company’s servers are critical for data center operators looking to maximize efficiency and reduce operating costs. By offering innovative liquid-cooled server solutions that can lower electricity and cooling expenses by a significant margin, Supermicro has established itself as a leader in the AI server market.
With analysts projecting robust earnings growth of 62% annually for the next five years, Supermicro’s stock price could potentially reach $3,720 after five years, representing a substantial 348% increase from current levels. The company’s strong position in a rapidly growing market makes it a compelling alternative to Nvidia for investors seeking exposure to the AI sector.
Meta Platforms, formerly known as Facebook, is another tech giant leveraging AI to drive growth. The company’s integration of AI tools across its platforms, such as WhatsApp, Facebook, Messenger, and Instagram, is enhancing user experience and helping advertisers maximize returns on their spending. With CEO Mark Zuckerberg highlighting the potential of Meta’s AI initiatives to boost engagement and monetization opportunities, the company is poised for sustained growth in the long term.
Analysts are optimistic about Meta’s earnings potential, forecasting a 28% annual increase over the next five years. Based on these projections, Meta’s stock price could reach $1,530 after five years, reflecting a significant 229% jump from current levels. Given Meta’s strong revenue and earnings growth in recent quarters, investors have an opportunity to capitalize on the company’s AI-driven expansion and long-term prospects.
As the AI revolution continues to reshape industries and drive innovation, investors looking for high-growth opportunities may find Super Micro Computer and Meta Platforms appealing options to consider alongside Nvidia. With their focus on AI technologies and strong growth trajectories, both companies have the potential to deliver substantial gains and outperform traditional market leaders in the coming years.
