Two trendy artificial intelligence (AI) stocks, Nvidia (NASDAQ: NVDA) and Super Micro Computer (NASDAQ: SMCI), have been leading the S&P 500 higher in 2024. As of April 24, these two stocks had notched impressive year-to-date gains of 61% and 166%, respectively, outperforming every other stock in the index. Wall Street analysts are now forecasting substantial gains for shareholders over the next year.
Hans Mosesmann at Rosenblatt recently raised his price target on Nvidia to $1,400 per share, implying a 69% upside from the current price of $826 per share. Similarly, Ananda Baruah at Loop Capital raised his price target on Super Micro Computer to $1,500 per share, suggesting a 91% upside from the current price of $787 per share.
Nvidia specializes in accelerated computing, dominating the market for data center accelerators with its GPUs and CUDA programming model. The company reported stellar financial results in the fourth quarter, with revenue rising 265% to $22.1 billion. Super Micro Computer, on the other hand, develops high-performance computing platforms and has been gaining ground on competitors like Dell Technologies and Hewlett Packard Enterprise.
While these stocks have seen significant gains, investors should be cautious and not fixate on individual analysts’ forecasts. However, both Nvidia and Super Micro Computer present compelling opportunities for further consideration. With the rapid growth of AI and data center technologies, these companies are well positioned to capitalize on future market trends.