Nvidia (NASDAQ:NVDA) shares remain very popular with UK investors. However, I have my eye on something closer to home.

More specifically, I’m watching FTSE250 technology shares that, like Nvidia, have a robust track record of exceeding market estimates.

Its shares are up 81% over the past five years and 543% over the past decade. I think there is still a lot to do in the face of the ongoing digital revolution.

I’m talking about Softcat (LSE:SCT), a stock that just posted more blockbuster trading results. The company’s shares last rose 13% on Thursday (October 24).

Forecasts beaten again

Softcat provides a range of technology services and is an expert in areas such as cloud computing, IT infrastructure, networks and cyber security.

Today’s results showed gross invoiced income increased by 11.3% in the 12 months to July to £2.85 billion. This resulted in an raise in operating profit of 9.3% to £154.1m, slightly above City estimates.

Gross profit increased by 11.7% year-on-year and amounted to £417.8 million.

New records

Softcat said its record result reflects “continuing to evolve our technology and service offerings as we continue to scale, making it easier for customers and suppliers to do business“. It also said that last year’s numbers “[reflected] industry trends, including data and artificial intelligence“.

As these results show, the company is successfully growing its employee base to take advantage of such opportunities. Over the last year, employment increased by 14.3%.

Finally, Softcat said cash conversion increased to 95.9% from 93.2% in fiscal 2023.

This prompted the company to raise its annual dividend by 6.4% to 26.6p. It also increased the amount of special dividend year-on-year to 20.9 points.

Bright prospects

Looking to the future, Softcat stated that “we expect another year of double-digit growth in gross profit with high single-digit growth in operating profit“.

I’m not surprised by the company’s persistence. Proven adept at increasing sales with existing clients and adding modern clients to their books.

As a potential investor, I am also encouraged by the company’s exceptional cash generation and robust balance sheet. This provides the opportunity to further invest in expansion to take advantage of growing markets.

What about Nvidia?

Don’t get me wrong. In my opinion, Nvidia still remains one of the fastest growing shares.

It’s not just a great game about the artificial intelligence (AI) revolution. Graphics processing unit (GPU) sales may raise as the metaverse, quantum computing, gaming and data center segments expand.

But the chipmaker also faces significant risks, including potential supply chain problems, an economic slowdown, increasing competition and growing trade tensions between the U.S. and China.

However, in my opinion, these risks are not factored into Nvidia’s stock price. Today it is trading at an exorbitantly high price-to-earnings (P/E) ratio of 50.8 times.

Softcat is also susceptible to economic changes and increasing competition. Revenue generation is also more reliant on the low-growth UK economy.

However, in delicate of these threats, I think its valuation is much more reasonable. Indeed, its potential P/E multiple is much lower than Nvidia’s, at 26.7 times.

In fact, given its long history of robust, better-than-expected earnings, I think Softcat stock could be a bargain for my portfolio. If I had money to spend on tech today, Softcat would be at the top of my list.