It appears the pullback in NVIDIA (NASDAQ:NVDA) was short-lived. As the market closed on July 9, NVDA stock remains one of this year’s outperforming stocks. NVDA is within about 3% of its all-time high, which it just set in June 2024. Even after dropping over 10%, the stock is up 6% in the last 30 days and 200% in the previous 12 months.
However, a 150% year-to-date return isn’t good enough for some investors. I kid, of course. However, the premise of this article is that some stocks are having a better year than NVIDIA, which is up 150% (158.14% as of July 9) in 2024. Admittedly, that list of outperforming stocks is short, but there are some names to consider.
However, if you get a little bit creative with stock screeners, you can find some opportunities, particularly in emerging economic sectors. That was the approach I took to finding this list of outperforming stocks that already are or could soon outpace NVIDIA.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) is topping this list of outperforming stocks, which is up 223.5% as of this writing. The company, also known simply as Supermicro, is getting a tailwind from the explosive demand for artificial intelligence (AI) applications.
For those who are unfamiliar with Supermicro, think of it like this: All the hardware that companies, and particularly data centers, need to power AI applications has to be housed somewhere. According to its website, the company “provides the custom server infrastructure that allows customers to bundle their GPUs and perform AI functions.” Not surprisingly, the company is benefiting from being NVIDIA’s preferred server partner.
But with over 200% growth, are all the gains gone? Here are two things to consider. First, SMCI stock is down 24% from its all-time high in March. But at one point, it was down nearly 40%. That’s a healthy pullback that gives the stock room to run.
The second consideration is valuation. The stock’s forward price-to-earnings (P/E) ratio is around 42x. That’s up from around 23x in May but still discounts NVDA stock.
Nano Nuclear Energy (NNE)
I’m cheating on this one a bit because Nano Nuclear Energy (NYSE:NNE) has only been publicly trading since May. However, NNE stock is up more than 300% in the 30 days ending July 9. That trajectory makes it a likely choice to be one of the outperforming stocks to watch.
The reason for my bullish thesis is that demand for nuclear energy is likely to increase for the rest of the decade. Governments worldwide are looking for forms of clean energy to meet their low-carbon initiatives. And with the reality that wind and solar won’t get them there, nuclear energy is back in favor. Over 60 nuclear reactors are being built worldwide.
What makes Nano Nuclear different and intriguing is that it focuses on micro-sized, portable nuclear reactors. These are more cost-efficient to build; one key application for them is data centers.
NNE stock comes with plenty of risks, not the least of which is the company is still in the pre-revenue stage. But NNE is a stock to watch if you’re looking to take a big swing.
Hut 8 (HUT)
I’m hedging on this stock pick a bit as well. Hut 8 (NYSE:HUT) is only up 31% in 2024. But it’s up more than 100% in the last three months and 300% in the last 12 months. That one-year performance is better than NVDA stock, which “only” gained 200%.
The story with Hut 8 centers around Bitcoin (BTC-USD). The company is one of the leading Bitcoin miners. While you might expect HUT stock to mirror the volatility in Bitcoin, that hasn’t been the case. So far, July has been an awful month for BTC, but Hut 8 was up 80% in the 30 days ending July 9.
I can’t disagree with Sam Farnham that it looks like a double-top pattern has formed on HUT stock. And it’s already showing signs of pulling back. But if you believe in Bitcoin’s long-term value, then the third time could be a charm, particularly if you expect Bitcoin to assault $100,000.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.