Nvidia vs. Super Micro Computer Stock: Billionaire David Shaw Bought One and Sold the Other in the Third Quarter.

Core Insights - Nvidia and Super Micro Computer are key players in the rapidly growing artificial intelligence (AI) sector, with Nvidia providing GPUs essential for AI tasks and Supermicro integrating these chips into its servers and workstations [1] - Both companies have experienced significant earnings growth due to AI demand, with Nvidia's shares increasing by 2,600% and Supermicro's by 1,700% over the past five years [2] Nvidia - Nvidia has established a dominant position in the AI chip market, with billionaire investor David Shaw increasing his stake by 53% to 17,210,271 shares [5] - The company is committed to annual GPU updates, with the launch of its new architecture, Blackwell, expected to enhance speed, efficiency, and customization options for customers [6] - Demand for Blackwell is described as "staggering," with Nvidia predicting billions in revenue during its first quarter of commercialization, contributing to its record revenue of over $35 billion in the latest quarter [7][8] Supermicro - Supermicro collaborates closely with Nvidia and other chip manufacturers, benefiting from their innovations, but Shaw reduced his position in Supermicro by 89% to 273,060 shares [9] - The company has faced challenges related to financial reporting, including losing its auditor, which poses a risk of Nasdaq delisting [10][11] - Supermicro's shares have declined by 28% since late August, but strong AI demand could lead to recovery if the company returns to compliance with reporting requirements [12]