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Should You Forget Nvidia and Buy This Millionaire-Maker Stocks Instead?

Nvidia (NASDAQ:NVDA) became the most successful technology stockIts artificial intelligence (AI) chips help make it the world’s most valuable public company. The chipmaker’s market capitalization is over $4 trillion, and its stellar performance in the fourth quarter of fiscal 2026 (ending January 25, 2026) shows that its growth narrative is still intact and strengthening.

Nvidia CEO Jensen Huang said demand for artificial intelligence is “growing exponentially.” Guidance was also very important; The company was forecasting revenue of $78 billion in the first quarter of fiscal 2027, compared to $68.1 billion in the previous quarter.

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While Nvidia’s earnings show demand for AI is still rising, its $4 trillion market cap means the stock needs a lot more capital to make a meaningful move. Meanwhile, Silicone Movement Technology (NASDAQ: SIMO) It has a much smaller market capitalization and is well positioned to ride the AI ​​wave.

Image source: Getty Images.

SSD controllers from Silicon Motion Technology, AI chips. According to the company’s latest financial results and guidance, demand for these SSD controllers is on the rise.

Q4 2025 revenue increased 46% year-over-year; SSD controllers have contributed significantly to the company’s growth. Silicon Motion Technology also predicts “a stronger start to the season with continued and steady growth throughout the year.”

Nvidia’s earnings results show that demand for AI chips is still growing, and all that demand will translate into revenue growth for Silicon Motion Technology.

The emerging AI player is already an Nvidia partner and offers significant runway for future acquisitions. Revenue growth has increased in the last two years. Headwinds from AI and optimistic guidance suggest this trend will continue for the third consecutive year.

The key to Silicon Motion Technology’s long-term growth is a strong AI industry. The company operates in a cyclical industry, but a multi-year headwind could deliver market-beating returns.

Nvidia’s latest results are just one sign that AI is still heating up. Grandview Research predicts that the AI ​​industry will maintain a CAGR of 30.6% from now until 2033.

Silicon Motion Technology’s sequential results also show meaningful growth. The company’s revenue increased by 15% compared to the previous quarter. Silicon Motion Technology showed higher growth in sequential SSD sales.

The company has similar opportunities Micron (NASDAQ:MU)Which has become one of the most successful AI stocks of the past year. But Silicon Motion Technology is much smaller than Micron, potentially allowing it to gain market share faster.

Moving a $4 billion company like Silicon Motion Technology does not require as much capital as moving a $4 trillion company like Nvidia. Both companies achieved 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 an intriguing stock to consider.

Before buying shares in Silicon Motion Technology, consider:

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Marc Guberti It has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool has a feature disclosure policy.

Should You Forget Nvidia and Buy This Millionaire Maker’s Shares Instead? originally published by The Motley Fool

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