I'm LongbridgeAI, I can summarize articles.Three AI stocks—Dell, Micron, and Super Micro Computer—have outperformed Nvidia over the past five years, turning a $10,000 investment into over $100,000. Dell benefits from strong AI server demand with upgraded forecasts. Micron saw massive revenue and profit growth due to memory shortages, though sustainability is questioned. Super Micro offers high returns but carries higher risk due to margin issues and executive controversies.
Nvidia (NVDA +0.42%) is arguably the most recognizable name for artificial intelligence (AI) investors, but there have been some even better-performing stocks over the past five years. While Nvidia has rallied around 850% during that time frame, the three stocks on this list have done even better.
Dell Technologies (DELL +2.71%), Micron Technology (MU -0.21%), and Super Micro Computer (SMCI -1.36%) have all generated better returns. Each one of them would have also turned a $10,000 investment into more than $100,000 by now.
Here's how much that size of an investment would be worth today, why these stocks have soared, and whether they can continue rising higher.
Image source: Getty Images.
Dell Technologies
A $10,000 investment in Dell would be worth approximately $119,000 today. It's been a terrific rally for the tech stock, with a significant chunk of its gains coming within the past year, as the company has benefited from insatiable demand for AI servers.
Dell recently posted its quarterly numbers, with its top line rising by 58%. And the company continues to see strong growth ahead, recently upgrading its full-year forecast for fiscal 2027 (which ends in January) to $192 billion, representing a year-over-year increase of around 69%.
NYSE: DELL
Key Data Points
Demand has been robust for Dell, which is experiencing growth in many areas of its business, not just AI servers. The stock is up over 330% in just the past 12 months, and with potentially even stronger results ahead, the stock may still have even more upside from here on out.
Micron Technology
The stock with the highest returns on this list is Micron Technology. Like Dell, it's been skyrocketing in the past year. In Micron's case, it's due to a shortage of memory and storage products, which the company has capitalized on by raising prices. The result is that not only are Micron's sales through the roof, but its margins are also incredibly high. A $10,000 investment in the company five years ago would now be worth around $129,000.
During its most recent quarter, which ended on May 28, revenue soared an incredible 346% year over year, while net income skyrocketed nearly 1,400%. It's a staggering level of growth. And although it is highly impressive, it also raises questions as to how long these kinds of results can go on for, and how sustainable they really are. The risk is that as the shortage ends and more supply comes online, prices may come down sharply.
NASDAQ: MU
Key Data Points
The shortage doesn't appear to be ending anytime soon, which is good news for AI investors. But Micron is a stock I'd watch carefully, because it can be highly volatile due to the outlook for the memory market. Although its valuation may appear modest based on earnings, if its margins shrink, the stock could quickly look far more expensive.
Super Micro Computer
I've left the riskiest, most volatile stock for last. Super Micro, which more commonly goes by just Supermicro, is also in the business of selling AI servers. A $10,000 investment in the company five years ago would be worth right around $102,000 right now.
However, poor margins and controversy involving its executives and internal controls have weighed down the stock significantly in recent years. In the past 12 months, the stock has declined by 20%. And while it trades at a seemingly low valuation -- just 11 times earnings -- investors are hesitant to buy the stock, given all the question marks around the business.
NASDAQ: SMCI
Key Data Points
At around $24 billion in market cap, Supermicro is by far the smallest company on this list, as having a low valuation has played a big role in the stock's significant gains in recent years, even despite the uncertainty surrounding its business, as it's made a name for itself with AI investors.