How Nvidia Stock Could Be the Biggest Winner from Super Micro's Preliminary Results

Super Micro Computer (SMCI) may have grabbed the headlines with its preliminary fourth-quarter results, but Wall Street's attention quickly shifted beyond the company itself. While investors digested what the AI server maker delivered, brokerage firm Wedbush highlighted potential winners from the update, pointing to positive implications for the famous Silicon Valley chipmaker Nvidia Corporation (NVDA), along with some other players.

Analyst Matt Bryson argued that Super Micro's better-than-expected gross margins are more than just a company-specific win. They also signal that demand for AI infrastructure continues to outpace supply, creating a favorable backdrop for the broader AI hardware ecosystem. And with Nvidia's GPUs powering the vast majority of AI servers shipping today, the chip giant appears to be in the strongest position to capitalize on that trend.

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The analyst believes Nvidia's supply chain advantage, combined with relentless demand for artificial intelligence (AI) chips, could make it one of the biggest beneficiaries of the same trends driving Super Micro's impressive preliminary update. If that's the case, SMCI's earnings surprise may be telling investors just as much about Nvidia's future as it does about Super Micro's own.

Founded in 1993 and headquartered in Santa Clara, California, Nvidia has come a long way from making graphics chips for gamers. Today, it is the company powering much of the world's AI boom, with its GPUs driving everything from massive data centers and cloud computing to robotics, autonomous vehicles, and advanced scientific research.

As businesses continue pouring billions into AI infrastructure, Nvidia has transformed into one of the world's most valuable companies, boasting a market capitalization of over $5.1 trillion. Plus, it is investing in energy-efficient computing and next-gen technologies, further strengthening its position as one of the defining forces in the future of AI.

Nvidia has spent the past year reminding Wall Street why it remains the poster child of the AI revolution. But if there's one lesson investors have learned in 2026, it is that even the market's hottest stock does not travel in a straight line. The first few months of the year were far from smooth, with NVDA stock caught in a tug-of-war between sky-high expectations and bouts of profit-taking. Then came April, when buyers stepped back in, reigniting the stock's momentum.

That comeback gathered steam through May, with Nvidia racing to a record high of $236.54 on May 14. Since then, however, the stock has eased 11.4% from its peak as investors took some money off the table amid questions over the pace of AI spending, hyperscaler capital expenditures, and growing competition across the semiconductor space. Even so, the broader trend hardly looks broken.

NVDA has delivered a jaw-dropping return of roughly 14,755% over the past decade. Over the past 52 weeks, the stock is up about 22.8%, while year-to-date (YTD), it has gained 12.5%. Even after slipping below the psychologically important $200 mark in late June, the shares have bounced back 10%, suggesting buyers were more than willing to scoop up the dip rather than run for the exits.

Technically, the picture appears steady. The 14-day RSI sits at 53.85, signaling neutral momentum with room for further upside before entering overbought territory. Meanwhile, the MACD oscillator has flashed a fresh bullish crossover, with the MACD line moving above the signal line and the histogram turning positive. It is not exactly a green light to floor the accelerator just yet, but it does suggest momentum is quietly shifting back in the bulls' favor.

For a company that's become synonymous with the AI boom, Nvidia's valuation is surprisingly grounded. The stock trades at 23.59 times forward price-to-earnings, below both its historical average and the broader sector, suggesting investors are not paying nosebleed prices despite its blockbuster run. Its price-to-sales ratio of 13.05 times still carries a premium, but that's the price of owning the industry's clear AI leader.

Also, Nvidia is sharing the wealth, boosting its quarterly dividend from $0.01 to $0.25 per share – a strong vote of confidence in its cash-generating power and long-term outlook.

The chip giant reported fiscal first-quarter 2027 earnings in May, and it did not just beat expectations, but raised the bar yet again. Despite all the chatter about slowing AI spending, customers are still opening their wallets in a big way, and Nvidia continues to be the biggest beneficiary. Revenue soared 85% year-over-year (YOY) to $81.6 billion, while adjusted EPS jumped 140% annually to $1.87.

At the same time, Nvidia streamlined its reporting structure into two major platforms – Data Center and Edge Computing – reflecting how AI is spreading far beyond traditional cloud computing into nearly every corner of the economy. Revenue from the Data Center business segment jumped 92% annually to $75.2 billion, fueled by relentless AI infrastructure spending from hyperscale cloud providers, enterprises, governments, and industrial customers. Demand for the company's Blackwell AI systems and networking products remained resilient. Hyperscale cloud customers alone generated $37.9 billion in revenue, up 115% YOY, while Nvidia's AI Cloud, Industrial, and Enterprise business climbed 74% to $37.4 billion.

Meanwhile, the Edge Computing segment delivered $6.4 billion in revenue, a healthy 29% increase, helped by resilient workstation demand despite a sluggish consumer PC market.