Nvidia (NASDAQ: NVDA) and Super Micro Computer (NASDAQ: SMCI) both play important roles in one of today’s hottest growth areas: artificial intelligence (AI). Nvidia sells graphics processing units (GPUs), which perform important tasks such as model training and inference, along with many other related products and services. Supermicro is a player behind the scenes, integrating these and other top AI chips into servers and workstations for data centers.
Both companies have seen their revenues soar in recent quarters due to demand from AI customers. This is reflected in their share performance, with Nvidia and Supermicro advancing 2,600% and 1,700%, respectively, over the past five years.
Missing the scoop in the morning? Breakfast News brings you everything in a quick, silly, free daily newsletter. Sign up for free »
Investors who got into these stocks early have benefited greatly, one in particular, billionaire David Shaw. His company, DE Shaw & Co., has owned Nvidia stock since 2008 and Supermicro stock since 2022. Mr. Shaw, a computer scientist, founded his hedge fund in 1988 and specializes in quantitative investing, a process that uses computational techniques to make decisions.
DE Shaw has over $60 billion in invested and committed capital, and its top five holdings are all active in the AI space. In the third quarter, Shaw took action against Nvidia and Supermicro. Read on to find out which ones he bought and which ones he sold.
Nvidia has built an AI empire in recent years and today dominates the AI chip market. The company is Shaw’s largest position, and he added to it in recent quarters. He increased his holdings by 53% to 17,210,271 shares. While it’s impossible to predict with 100% accuracy whether this will be a winning decision, there are plenty of clues that suggest this AI company’s success is just beginning.
One of these successes is Nvidia’s commitment to innovation. The company has promised to update its GPUs annually, which it hopes will keep it ahead of its competitors. Now, Nvidia may be taking a big step in differentiating itself with the announcement of a new architecture, Blackwell. This platform has the potential to be a game-changing product that offers customers speed, efficiency, and a variety of features that can be customized to suit their needs.
Demand for Blackwell has been “tremendous,” NVIDIA said on a recent earnings call, predicting billions of dollars in revenue this quarter, the first quarter of commercialization. This is done against an already light background.
the story continues
