Nvidia has been one of the most talked about and rewarding stocks on the market in the past couple of years because of its role in the artificial intelligence (AI) ecosystem. However, a smaller, lesser-known AI stock has crushed Nvidia's returns this year: SuperX AI Technology (SUPX 9.01%).
This year, Nvidia's stock is up 30%, while SuperX AI Technology is up over 1,480%. And despite this impressive (to say the least) growth, there's one key reason why the stock is continuing its rise.
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SuperX AI Technology is a full-stack AI infrastructure provider, focusing on areas like AI servers and racks, digital power systems, and thermal and cooling management.
As the AI boom continues, key companies are putting tons of money and resources into building out data centers because they're essential for training, deploying, and scaling AI. These data center buildouts are great news for SuperX AI Technology's business because it supplies some core infrastructure that these data centers require.
Aside from the physical hardware that SuperX AI Technology provides for data centers, it also has a cloud platform that it says can allow companies to "tap into high-performance Nvidia GPUs." This relationship provides SuperX AI Technology with a clear path to higher-margin recurring revenue, rather than relying solely on one-off hardware sales. The company isn't currently profitable, but this could be a key way to change that.
