Should You Forget Nvidia and Buy This Millionaire-Maker Stocks Instead?

By Marc Guberti – Mar 7, 2026 at 2:05PM ESTKey PointsNvidia's earnings results point to a strong artificial intelligence (AI) industry, but its $4 trillion market cap means the stock requires far more capital to generate meaningful price growth.Silicon Motion Technology is a smaller company that specializes in AI memory storage solutions.High sequential growth combined with long-term AI tailwinds can help Silicon Motion Technology continues to outperform the S&P 500.Nvidia (NVDA 2.94%) has been the most successful tech stock, with its artificial intelligence (AI) chips helping it become the world's most valuable publicly traded company. The chipmaker's market cap is above $4 trillion, and an excellent fourth-quarter fiscal 2026 (that ended Jan. 25, 2026) performance shows the growth narrative is still intact and strengthening. Nvidia CEO Jensen Huang said that AI demand is "growing exponentially." Guidance was also quite substantial, with the company projecting $78 billion in revenue for the first quarter of fiscal 2027, compared to $68.1 billion in the previous quarter. While Nvidia's earnings show AI demand is still heating up, its $4 trillion market cap means the stock needs far more capital to generate any meaningful movement. Meanwhile, Silicon Motion Technology (SIMO 4.37%) has a much smaller market cap and is well-positioned to ride the AI wave. Image source: Getty Images.

Silicon Motion Technology offers memory storage solutions for AI chips Silicon Motion Technology's SSD controllers are memory storage solutions for AI chips. Per the company's recent financial results and guidance, demand for these SSD controllers is heating up. Q4 2025 revenue increased 46% year over year, with SSD controllers contributing significantly to the company's growth.

Silicon Motion Technology also forecast a "stronger-than-seasonal start, with sustained and steady growth throughout the year." ExpandNASDAQ: SIMOSilicon Motion TechnologyToday's Change(-4.37%) $-5.41Current Price$118.35Key Data PointsMarket Cap$4.0BDay's Range$116.07 - $122.5252wk Range$37.21 - $146.85Volume338KAvg Vol627KGross Margin48.27%Dividend Yield1.69% Nvidia's earnings results show that AI chip demand is still picking up, and all that demand will translate into revenue acceleration for Silicon Motion Technology. The emerging AI player is already an Nvidia partner, offering a significant runway for future gains. Revenue growth has increased for each of the past two years. AI tailwinds and optimistic guidance suggest this trend will continue for a third consecutive year. The AI industry is still growing Key to Silicon Motion Technology's long-term growth is a robust AI industry. The company operates in a cyclical industry, but a multiyear tailwind could produce market-beating returns. Nvidia's recent results are just one sign that AI is still heating up. Grandview Research projects the AI industry maintaining a 30.6% CAGR from now until 2033.

Silicon Motion Technology's sequential results also show meaningful growth. The company's revenue was up by 15% quarter over quarter.

Silicon Motion Technology had higher sequential SSD sales growth. The company has similar opportunities as Micron (MU 6.68%), which has become one of the most successful AI stocks over the past year. However, Silicon Motion Technology is much smaller than Micron, allowing it to potentially gain market share more quickly. It doesn't take as much capital to move a $4 billion company like Silicon Motion Technology as it does to move a $4 trillion firm like Nvidia. Both companies posted excellent financial results and offered strong guidance.

Silicon Motion Technology's relative obscurity and small market cap compared to Nvidia, as well as its impressive growth rates, make it a compelling stock to consider.Read NextFeb 26, 2026 •By Marc Guberti1 Top Artificial Intelligence Stock to Buy Right NowFeb 14, 2026 •By Marc GubertiThe Best Dividend Stocks to Buy and Hold ForeverNov 16, 2023 •By Nicholas Rossolillo1 Small Chip Stock to Consider for a New Era of AIJul 26, 2023 •By Steve SymingtonWhy MaxLinear Stock Plunged While Silicon Motion Technology Popped TodayJan 19, 2023 •By Nicholas Rossolillo1 Better Memory Chip Stock Than Micron for 2023 as the Chip Downturn Rages OnMay 5, 2022 •By Daniel SparksWhy Silicon Motion Stock Soared Today (and MaxLinear Fell)About the AuthorMarc Guberti is a Certified Personal Finance Counselor and has been a contributing Motley Fool stock market analyst since 2025. He has written for several finance publications. Marc graduated from Fordham University with a finance degree. He is an avid marathon runner who aims to complete more than 100 marathons in his lifetime. His fastest marathon time is 2:40.TMFmarcgubertiStocks MentionedSilicon Motion TechnologyNASDAQ: SIMO$118.35(-4.37%)-$5.41NvidiaNASDAQ: NVDA$177.95(-2.94%)-$5.39Micron TechnologyNASDAQ: MU$370.54(-6.68%)-$26.51*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.