And this stock is Super Micro Computer ( SMCI 0.07%), a company that saw its stock price soar 188% in the first half, surpassing Nvidia's 149% increase. Though individual forecasts vary, the average Wall Street estimate calls for the stock to climb 90% from today's level.

Nvidia's huge stock rally is still exerting an outsized influence over the S&P 500 index , reinforcing concerns that broader markets could be hurt if the chipmaking giant's fortunes turn.

The graphics chipmaker lost nearly $280 billion in market value Tuesday, the most ever by a company in a single session.

Nvidia jumped after CEO Jensen Huang flagged strong demand for the company's chips, boosting its market value by more than $200 billion and accounting for 44 percent of the S&P 500's surge that day, data from Nomura showed.

AMD and Nvidia are in a fierce competition to dominate the growing AI market, with Nvidia having a first-mover advantage. While both stocks show bullish momentum, Nvidia's technical indicators suggest a stronger long-term outlook.

Nvidia’s stock historically has made dramatic moves in the year after initial Fed interest-rate cuts, and it has outperformed the S&P 500 on average when looking at all rate cuts since the IPO.

William Blair initiated coverage of Nvidia with an outperform rating. Analyst Sebastien Naji thinks investors are not accurately pricing in Nvidia's total addressable market. In doing so, Nvidia has reached a nosebleed valuation and now trades at 40 times forward earnings.