Nvidia (NASDAQ:NVDA) shares remain super popular with UK investors. I’ve got my eye on something a little closer to home, however.

More specifically, I’m eyeing up a FTSE 250 tech share which — like Nvidia — has a brilliant track record of beating market estimates.

Its shares are up 81% over the past five years, and 543% during the last decade. And I think it has much further to go as the digital revolution rolls on.

I’m talking about Softcat (LSE:SCT), a share that’s just published more blockbuster trading numbers. Its shares were last up 13% on Thursday (24 October).

Forecasts beaten again

Softcat provides a range of tech services, and is an expert in fields including cloud computing, IT infrastructure, networking, and cyber security.

Results today showed gross invoiced income up 11.3% in the 12 months to July, at £2.85bn. This drove operating profit 9.3% higher, to £154.1m and slightly ahead of City estimates.

Gross profit was up 11.7% year on year at £417.8m.

New records

Softcat said its record result reflected “further development of our technology and service proposition as we continue to scale, making it easier for customers and vendors to do business“. It also said last year’s numbers “[reflected] industry trends including data and AI“.

The business is effectively growing its employee base to capitalise on such opportunities, as these results show. Its headcount rose 14.3% over the course of the last year.

Finally, Softcat said its cash conversion had picked up to 95.9% from 93.2% in financial 2023.

This prompted it to raise the annual dividend 6.4%, to 26.6p. It also increased the special dividend year on year, to 20.9p.

Bright outlook

Looking ahead, Softcat said that “we expect to deliver another year of double-digit gross profit growth together with high single-digit operating profit growth“.

I’m not surprised by the firm’s bullishness. It’s proven adept at growing sales with existing customers, alongside adding new clients to its books.

As a potential investor, I’m also encouraged by its exceptional cash generation and strong balance sheet. This gives it scope to continue investing in expansion to capitalise on its growing markets.

What about Nvidia?

Now don’t get me wrong. Nvidia still remains one of the hottest growth shares in my opinion.

It’s not just a great play on the artificial intelligence (AI) revolution. Sales of its graphic processing units (GPUs) could take off as the metaverse, quantum computing, gaming, and data centre segments grow.

However, the chipmaker also faces significant threats, like potential supply chain problems, an economic slowdown, growing competition, and rising trade tensions between the US and China.

Yet these threats aren’t factored into Nvidia’s share price, in my opinion. Today it trades on a sky-high forward price-to-earnings (P/E) ratio of 50.8 times.

Softcat is also vulnerable to the economic landscape and increasing competition. It is also more dependent on the low-growth British economy to drive revenues.

However, I think its valuation is far more reasonable in light of these dangers. Indeed, its prospective P/E multiple is considerably lower than Nvidia’s, at 26.7 times.

In fact, given its long record of strong, forecast-beating earnings, I think Softcat shares could be a bargain for my portfolio. If I had money to spend today on a tech share, Softcat would be at the top of my list.