Nvidia (NASDAQ: NVDA) has been top-of-the-line shares to personal within the synthetic intelligence (AI) race to date. The corporate’s income has tripled 12 months over 12 months in current quarters, sending the refill 149% within the first half of 2024.At these lofty share costs, Nvidia’s valuation appears to be like stretched. The inventory’s ahead price-to-earnings ratio was lower than 30 to begin the 12 months, nevertheless it now trades at a dearer 45 occasions this 12 months’s consensus earnings estimate. Nvidia may expertise sufficient development to push the inventory greater, however there’s additionally an opportunity that near-term demand is already baked into the share value, which might restrict the inventory’s good points via the top of the 12 months.The excellent news is that Nvidia is not the one AI inventory beating the market. Nvidia has benefited from tight provide of AI chips, however as provide improves, it might drive extra demand for AI servers, and the shares of those corporations commerce at extra affordable valuations, which might arrange superior returns within the close to time period.Listed here are two AI server shares that might outperform Nvidia for the remainder of the 12 months.1. Tremendous Micro ComputerSuper Micro Laptop (NASDAQ: SMCI) inventory has outperformed Nvidia in 2024, up 188%. It sells rack-mount programs for knowledge facilities. Due to its publicity to the broader demand for AI chips, Supermicro (as additionally it is recognized) is a stable various to Nvidia.Supermicro sells into a number of markets, together with 5G connectivity and edge computing. However demand for its plug-and-play rack programs that characteristic knowledge middle chips from Nvidia and Superior Micro Gadgets are key drivers of its development proper now. Income surged 200% 12 months over 12 months final quarter, which mirrors Nvidia’s development.Promoting server programs is a aggressive market, nevertheless it’s encouraging to see Supermicro rising sooner than the trade. It maintains shut relationships with suppliers like Nvidia, which helps the corporate ship progressive options earlier than rivals. It is at the moment pushing the adoption of direct liquid cooling options, which it has developed for years, to higher handle the warmth generated from AI computing programs.If it continues to outpace the remainder of the server trade, the inventory might have substantial upside. Wall Road analysts count on Supermicro’s earnings per share to develop at an annualized price of 46% over the following a number of years — greater than the 33% estimate for Nvidia.Furthermore, Supermicro inventory additionally presents higher worth than Nvidia. Its present ahead price-to-earnings (P/E) ratio is 35 — decrease than the 45 ahead P/E a number of for Nvidia. Traders are getting extra earnings development for a lower cost with Supermicro — a recipe for superior returns.Story continues2. Dell TechnologiesDell Applied sciences (NYSE: DELL) shares are up 80% 12 months to this point, however the firm’s shares might outperform Nvidia for the remainder of the 12 months as a result of accelerating demand for the corporate’s AI servers.Dell generates most of its income from shopper options, which embody gross sales of PCs, however infrastructure options is its fastest-growing enterprise, with income up 22% 12 months over 12 months final quarter. AI server shipments greater than doubled over the year-ago interval. Over the past 12 months, income from AI servers exploded from zero to $1.7 billion, and it is simply getting began.Gross sales of AI servers are weighing on Dell’s gross margin, however the strong income development anticipated within the AI server enterprise might help substantial earnings development to ship the inventory greater over the following few years.The corporate’s AI server backlog grew roughly 31% within the final quarter to $3.8 billion. That improve may mirror new enterprise from Tesla, in keeping with Evercore ISI analyst Amit Daryanani. Dell appears to be in a robust aggressive place, because the analyst believes that Dell gained a bigger quantity of server enterprise with the electrical car maker than Supermicro.Wall Road analysts mission earnings to develop 12% yearly over the following a number of years, and people estimates may improve additional as soon as Dell’s PC enterprise recovers. The inventory’s ahead P/E of 18 appears to be like engaging in opposition to the potential for accelerating earnings development and will present superior returns.Must you make investments $1,000 in Tremendous Micro Laptop proper now?Before you purchase inventory in Tremendous Micro Laptop, 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 Laptop wasn’t considered one of them. The ten shares that made the reduce might produce monster returns within the coming years.Think about when Nvidia made this listing on April 15, 2005… when you invested $1,000 on the time of our advice, you’d have $759,759!*Inventory Advisor offers buyers with an easy-to-follow blueprint for fulfillment, together with steerage 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 June 24, 2024John Ballard has positions in Superior Micro Gadgets, Nvidia, and Tesla. The Motley Idiot has positions in and recommends Superior Micro Gadgets, Nvidia, and Tesla. The Motley Idiot has a disclosure coverage.Nvidia Inventory Is Up 149% This Yr. Right here Are 2 Shares That Might Outperform It the Remainder of 2024. was initially printed by The Motley Idiot