2 Large-Cap Stocks That Twiced Nvidia's Returns Last Year

Nvidia (NASDAQ: NVDA) has been a tech investing success story in recent years. With OpenAI's ChatGPT and enterprises investing extensively in AI, Nvidia's business is flourishing as its processors enable firms construct their own AI models. That corporate boom is boosting the stock. Over the past year, its price has risen 238%.  

Nvidia's stock has done well in the past year, but other large-cap equities have done better. Super Micro Computer (NASDAQ: SMCI) and Carvana (NYSE: CVNA) have quadrupled Nvidia's returns in the past year. Check out their results during this time frame to see why they were hot buys and if they're still smart investments.  

Supermicro: 445% Super Micro's stock has outperformed Nvidia's 12 months with 445% gains. Like Nvidia, this is a favorite AI investment due to investors' optimism about the company's future server and processing power requirements.

Super Micro's first-quarter revenues were just under $3.9 billion, three times the $1.3 billion company posted last year. Server and storage systems are its main revenue source. Its other sector, subsystems and accessories, earned $152 million last quarter, 4% of its total revenue. Super Micro reported $402 million in profit, more than four times the $86 million it earned the year before.  

Due to its lower value, Super Micro's returns have increased over the past year. Super Micro is worth $53 billion, well below Nvidia's $2.3 trillion value, despite its huge gains. The stock's forward P/E ratio of 25 is small given its growth, which is positive. The forward P/E for Nvidia is 38. Super Micro stock may still be worth investing in due to its rapid development, promising future, and acceptable value.  

Carvana: (876%) Carvana's stock could have returned more last year if investors took more risk. A year ago, investors who bought this downtrodden stock would have made nine-baggers. Carvana shareholders lost 98% in 2022. The online used-car business ran out of cash, borrowing rates rose, and demand fell.  

Carvana's surprise $49 million profit for the period ended March 31 was a huge turnaround from its $286 million deficit a year earlier. Over the year, sales rose 17% to $3.1 billion. Last quarter, Carvana generated $101 million in cash from its daily operational activities, up from $66 million a year earlier.  

Last quarter, Carvana had good profits, but a recession could yet be coming. The company's profit margin last quarter was 1.6%, indicating that it is still struggling to generate consistent earnings. Given its volatility over the past few years and substantial short interest, investors may want to wait at least two quarters before deciding if Carvana is a solid buy.