Missed out on Nvidia and SMCI? Analyst says this stock is the 'hidden AI gem'

investing.com:

Given the artificial intelligence (AI) surge, the spotlight has been heavily focused on two names, Nvidia (NASDAQ:NVDA) stock and Super Micro Computer Inc (NASDAQ:SMCI) stock. However, according to analysts at Baird, there's another to watch — a stock hailed as the 'hidden AI gem.'

As the demand for artificial intelligence continues to soar, this under-the-radar stock has captured the attention of analysts at the firm for its potential to also benefit from the technology.

As the demand for AI has continued to ramp up over the last year or more, stocks that are prominent “picks and shovels” names have experienced significant rallies.

Nvidia, an already big name in the semiconductor industry, has also become a major player in AI. As a result, its stock value has surged by more than 92% in 2024 and 251% in the last 12 months. The company's pivotal role in powering AI applications has propelled its stock to all-time highs. Investors have reaped substantial rewards from Nvidia's remarkable rally, solidifying its status as a frontrunner in the AI market.

Meanwhile, the percentage gain in SMCI has been even more impressive. Despite a recent dip, it is still up more than 272% in the year-to-date, while it has surged 824% in the last 12 months.

The company’s growth in the AI server market has seen it become a key beneficiary of the AI surge.

With NVIDIA and SMCI already experiencing strong rises, many investors are now looking for the next big AI stock play. Analysts at Baird named one they believe is “very well positioned in the upcoming ramp of new AI platforms.”

In a note this week, the firm added Semtech Corporation (NASDAQ:SMTC) shares as a “Bullish Fresh Pick” following meetings with the company. “The ramp of LPOs and the