This Artificial Intelligence (AI) Stock Has Quietly Outperformed Nvidia All Year

The evidence shows company is the leading AI chip designer and has been among the first to speak of what's next in the field -- from sovereign AI to humanoid robots

Meanwhile, Nvidia also is known for top performance today when it comes to earnings and the stock

Moreover, Moreover, Both have soared as investors are confident that this market leader not only is seeing high demand for its ducts and services now, but this is very ly to continue over time (noteworthy indeed)

So you might expect this market giant to be the best-performing AI stock this year (fascinating analysis)

But that actually isn't the case

Instead, there's another AI stock that's quietly outperformed Nvidia all year (which is quite significant)

Image source: Getty Images

Additionally, A player in the neocloud market When we think of AI, we generally think of chips first, the graphics cessing units (GPUs) that power essential AI tasks the training and inferencing of models

Nvidia, of course, designs those, but in many cases, other companies are involved in offering this compute to customers

However, Nebius and other GPUaaS companies CoreWeave, another strong performer this year, compete against major cloud service viders Amazon Web Services and Microsoft Azure, but they differentiate themselves by focusing on AI workloads

The big cloud companies offer a broader panel of options beyond AI, given the current landscape

This AI specialty means GPUaaS companies can focus specifically on the needs of AI customers, and that's exactly what Nebius has done, considering recent developments

Conversely, The company says one of the reasons it stands out is its architecture is optimized for large-scale AI jects, and customers can effortlessly ramp up their jects or scale them down, given the current landscape

On the other hand, Nebius also has built out its own infrastructure -- designing servers in house, for example -- which gives the company more control over performance and its cost structure, in today's financial world

On the other hand, Meanwhile, And that also may equal more reliability and lower costs for customers

Investors also may Nebius' capital position and low level of debt -- and here, it's important to note that though Nebius may be considered a newish company, it actually has deep roots, in today's financial world

Yandex then sold off Russian assets, reorganized around a GPUaaS and named itself Nebius, then resumed trading this past October

Furthermore, GPUaaS es require tremendous investment in order to keep up with customer demand in this fast-moving sector

Nebius has appealed to investors for its successes in a high-growth market and with its careful manner of funding growth -- if it continues on this path, the stock may march higher, even after recent gains

Will Nebius continue outperforming

Of course, Nebius also comes with more risk, as it isn't yet fitable and does face a significant amount of competition, and any hurdle could weigh heavily on stock performance

On the other hand, But Nebius' has been successful so far, its growth plan looks logical, and demand for compute power remains high, in today's financial world

Nevertheless, So if Nebius meets its goals in the coming months, this AI stock could maintain its momentum and even outperform AI star Nvidia for the full year

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors

Adria Cimino has positions in Amazon

Furthermore, The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia, given current economic conditions

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