Nvidia (NASDAQ: NVDA) added to its winnings within the first half, gaining about 150% after already climbing 1,300% over the previous 5 years. The corporate dominates the substitute intelligence (AI) chip market, holding an 80% share, and in addition sells quite a lot of associated services to firms launching AI tasks. This has resulted in development, with earnings advancing within the triple digits quarter after quarter.As nice as this sounds, although, Nvidia is not the perfect performer of the primary half. One other inventory truly soared previous the chipmaker, skyrocketing 188%. This firm additionally operates within the AI house and has seen earnings climb — and this participant truly advantages from development of Nvidia and different chip designers.May this Nvidia- and market-beating inventory supply buyers a repeat efficiency within the second half? Let’s discover out.Picture supply: Getty Photos.Serving AI knowledge centersThe participant that is wowed the market in current occasions truly has been round for fairly some time — greater than 30 years to be precise. I am speaking about Tremendous Micro Pc (NASDAQ: SMCI), a maker of servers, workstations, full rack scale options, and different gear essential to the operations of AI knowledge facilities. Supermicro’s income progressively rose through the years, however the AI increase marked a transparent turning level, serving to gross sales and web earnings to skyrocket.Earlier this yr, Supermicro even reported its first $3 billion quarter — that was the corporate’s annual income stage as not too long ago as 2021.Supermicro has benefited from demand for high AI chips as a result of prospects usually needn’t solely a chip however quite a lot of gear — and the corporate integrates these chips into its merchandise. So when Nvidia or Intel, for instance, launch a brand new chip, this creates demand for Supermicro’s merchandise too. To maximise the profit, Supermicro works hand-in-hand with these firms, monitoring their improvement pipelines in order that it could instantly embody their improvements in its gear.And Supermicro’s “constructing blocks” course of — with most of its merchandise sharing widespread elements — additionally makes it simple to rapidly produce gear tailor-made to prospects’ wants. All of this has helped the corporate develop 5 occasions quicker than its business over the previous 12 months.There’s purpose to be optimistic this can proceed as a result of AI market development is in its early days. Analysts predict in the present day’s $200 billion market will attain past $1 trillion by the top of the last decade — and this could translate into sustained demand for Supermicro’s merchandise.Story continuesA new development driverOn high of this, Supermicro’s direct liquid cooling (DLC) expertise could function a brand new development driver for the corporate. AI knowledge facilities generate an amazing quantity of warmth, and this example solely will worsen as workloads intensify.However Supermicro’s DLC expertise solves this downside, and prospects now are taking discover. Supermicro’s DLC options, rising from zero market share to lower than 1% within the firm’s 30-year historical past, may take as a lot as a 30% share over the subsequent couple of years, The Taipei Occasions reported, citing the corporate’s chief govt officer Charles Liang.All of this implies Supermicro’s spectacular development could also be removed from over, and within the second half of this yr, Nvidia’s launch of its game-changing new structure — Blackwell — and chip may supply the gear maker a brand new enhance. Supermicro not too long ago supplied a sneak peek of its Blackwell merchandise and says it is centered on creating new generative AI and inference-optimized techniques accommodating the market leaders’ newest chips.May Supermicro beat Nvidia?Now, let’s get again to our query: May Supermicro proceed to beat Nvidia and the overall market within the second half? I feel it is very probably this gear large will outperform the market, because of its development prospects and place within the sizzling space of AI.As for surpassing Nvidia’s beneficial properties, it is attainable. Regardless of Supermicro’s first-half improve, the corporate trades at a big low cost to the chip designer — about 24x ahead earnings estimates versus 46x for Nvidia. On the similar time, the earnings-per-share development estimate of 62% for the approaching 5 years for Supermicro tops common estimates of 46% for Nvidia.These factors may appeal to buyers and assist Supermicro soar within the second half. However even when this high gear firm does not supply us a repeat efficiency within the coming months, that is OK. Supermicro nonetheless has what it takes to ship earnings development and share efficiency over the long run, and that is nice information for buyers in the present day.Must you make investments $1,000 in Tremendous Micro Pc proper now?Before you purchase inventory in Tremendous Micro Pc, take into account this:The Motley Idiot Inventory Advisor analyst group simply recognized what they imagine are the 10 finest shares for buyers to purchase now… and Tremendous Micro Pc wasn’t one in all them. The ten shares that made the lower may produce monster returns within the coming years.Think about when Nvidia made this record on April 15, 2005… when you invested $1,000 on the time of our advice, you’d have $771,034!*Inventory Advisor gives buyers with an easy-to-follow blueprint for fulfillment, together with steering on constructing a portfolio, common updates from analysts, and two new inventory picks every month. The Inventory Advisor service has greater than quadrupled the return of S&P 500 since 2002*.See the ten shares »*Inventory Advisor returns as of July 2, 2024Adria Cimino has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Nvidia. The Motley Idiot recommends Intel and recommends the next choices: lengthy January 2025 $45 calls on Intel and quick August 2024 $35 calls on Intel. The Motley Idiot has a disclosure coverage.This Inventory Beat Nvidia within the First Half. Can It Do It Once more? was initially printed by The Motley Idiot