Nvidia (NVDA 1.46%) has been the most successful tech stock, with its artificial intelligence (AI) chips helping it become the world's most valuable publicly traded company. The chipmaker's market cap is above $4 trillion, and an excellent fourth-quarter fiscal 2026 (that ended Jan. 25, 2026) performance shows the growth narrative is still intact and strengthening.
Nvidia CEO Jensen Huang said that AI demand is "growing exponentially." Guidance was also quite substantial, with the company projecting $78 billion in revenue for the first quarter of fiscal 2027, compared to $68.1 billion in the previous quarter.
While Nvidia's earnings show AI demand is still heating up, its $4 trillion market cap means the stock needs far more capital to generate any meaningful movement. Meanwhile, Silicon Motion Technology (SIMO 2.94%) has a much smaller market cap and is well-positioned to ride the AI wave.
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Silicon Motion Technology offers memory storage solutions for AI chips
Silicon Motion Technology's SSD controllers are memory storage solutions for AI chips. Per the company's recent financial results and guidance, demand for these SSD controllers is heating up.
Q4 2025 revenue increased 46% year over year, with SSD controllers contributing significantly to the company's growth. Silicon Motion Technology also forecast a "stronger-than-seasonal start, with sustained and steady growth throughout the year."
NASDAQ: SIMO
Key Data Points
Nvidia's earnings results show that AI chip demand is still picking up, and all that demand will translate into revenue acceleration for Silicon Motion Technology.
The emerging AI player is already an Nvidia partner, offering a significant runway for future gains. Revenue growth has increased for each of the past two years. AI tailwinds and optimistic guidance suggest this trend will continue for a third consecutive year.
The AI industry is still growing
Key to Silicon Motion Technology's long-term growth is a robust AI industry. The company operates in a cyclical industry, but a multiyear tailwind could produce market-beating returns.
Nvidia's recent results are just one sign that AI is still heating up. Grandview Research projects the AI industry maintaining a 30.6% CAGR from now until 2033.
Silicon Motion Technology's sequential results also show meaningful growth. The company's revenue was up by 15% quarter over quarter. Silicon Motion Technology had higher sequential SSD sales growth.
The company has similar opportunities as Micron (MU 2.98%), which has become one of the most successful AI stocks over the past year. However, Silicon Motion Technology is much smaller than Micron, allowing it to potentially gain market share more quickly.
It doesn't take as much capital to move a $4 billion company like Silicon Motion Technology as it does to move a $4 trillion firm like Nvidia. Both companies posted excellent financial results and offered strong guidance. Silicon Motion Technology's relative obscurity and small market cap compared to Nvidia, as well as its impressive growth rates, make it a compelling stock to consider.
