Which company is in the spotlight this week? NVIDIA (NASDAQ: NVDA)undoubtedly. The chipmaker will announce its second-quarter results on Wednesday after the stock market closes.

I fully expect Nvidia’s numbers to once again wow investors and allow the company to continue to build on its already impressive gains this year. But there’s another stock split stock that could also soar if Nvidia delivers a stunning Q2 update.

Inseparable

Super-microcomputer (NASDAQ:SMCI)also known as Supermicro, is probably inextricably linked with Nvidia. The company offers server and storage solutions that are particularly popular in data centers.

The same artificial intelligence (AI) tailwinds that are driving Nvidia’s growth are also helping Supermicro. Charles Liang, president and CEO of Supermicro, said earlier this month that his company “continues to experience record demand for new AI infrastructure.” As a result, Supermicro’s revenue in the fourth quarter of fiscal 2024 increased 110% year over year.

If Nvidia’s Q2 results on Wednesday significantly beat expectations (and, more importantly, if the company’s guidance is strong), that will bode well for Supermicro’s future. I expect Nvidia to also provide clarity on the timing of shipments of chips based on the new Blackwell architecture. This should also help Supermicro, which has liquid-cooled AI superclusters ready to support Blackwell.

Liang believes a delay at Blackwell won’t have a major impact on Supermicro, as the company is working with other chipmakers. But don’t worry: Good news from Nvidia means good news for Supermicro.

Will Supermicro’s stock split be another catalyst?

I don’t think there’s much doubt that a stunning Nvidia update in the second quarter would be a catalyst for Supermicro. But what about the company’s 10-for-1 stock split scheduled for October 1? That’s questionable in my opinion.

On the one hand, Supermicro’s stock split will not change the company’s underlying business or growth prospects. On the other hand, a spectacular forecast from Nvidia would likely mean stronger future growth for Supermicro.

Any investor who really wanted to buy shares of Supermicro could do so, even when the stock price was around $600. Many online brokers support the purchase of fractional shares.

However, this will be Supermicro’s first stock split. I admit that it’s possible that some investors who have remained cautious so far will see the split as a great opportunity to buy the stock. I suspect that the appeal of investing in Supermicro could be even greater if the stock does indeed skyrocket, as I expect it to after Nvidia’s quarterly update this week.

The story continues

Is Supermicro a better stock to buy than Nvidia?

Now to an even more important question: Is Supermicro a better stock to buy than Nvidia? Wall Street seems to think so.

The 12-month consensus price target for Supermicro from LSEG in August reflects an upside potential of over 50%. In comparison, the average price target for Nvidia is slightly lower than its current price.

I agree that Supermicro is a better bet than Nvidia. My main reason is valuation. Supermicro’s stock trades at a much lower earnings multiple than Nvidia’s. But if Nvidia presents investors with great news on Wednesday, both stocks should be big winners.

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Keith Speights does not own any stocks mentioned. The Motley Fool owns Nvidia and recommends the company. The Motley Fool has a disclosure policy.

These stock split stocks could soar if Nvidia delivers a stunning Q2 update. Originally published by The Motley Fool