Two artificial intelligence (AI) stocks have led the S&P 500 (SNPINDEX: ^GSPC) higher this year. Semiconductor company Nvidia (NASDAQ: NVDA) and server manufacturer Super Micro Computer (NASDAQ: SMCI) have see their share prices surge 159% and 119%, respectively.
Both companies recently announced 10-for-1 stock splits to make shares more affordable. Nvidia completed its split in June, and Super Micro Computer will follow suit in late September. But Wall Street analysts expect both stocks to move even higher over the next 12 months.
Nvidia’s median target of $140 per share implies 10% upside from its current share price of $127. And Super Micro’s median target of $693 per share implies 16% upside from its current share price of $600. But I think Super Micro stock will soar 100% in the next year, achieving a split-adjusted share price of $120 by August 2025.
That said, patient investors should consider buying both stocks.
Nvidia: Delayed Blackwell shipments create uncertainty ahead of earnings
Nvidia reported stellar financial results in the first quarter, crushing estimates on the top and bottom lines. Revenue rose 262% to $26 billion and non-GAAP net income climbed 461% to $6.12 per diluted share. CEO Jensen Huang said, “Our data center growth was fueled by strong and accelerating demand for generative AI training and inference on the Hopper platform.”
However, shipments of Nvidia’s Blackwell GPUs will be delayed three months due to a design flaw “discovered unusually late in the production process,” according to The Information. Blackwell chips can run training and inference workloads more quickly than the previous Hopper generation, which should further cement Nvidia’s leadership position in AI chips.
Following the report, Nvidia shares slipped to their lowest level since May, but the stock has since rebounded, suggesting the market sees little reason to worry. Indeed, Deutsche Bank analyst Ross Seymore doubts the delayed launch of Blackwell will have a material impact on the Nvidia’s near-term outlook or its ability to achieve Wall Street estimates.
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