Artificial intelligence doesn’t run on magic. It runs on chips, servers, networks, and cloud infrastructure. These systems power everything from model training to real-time deployment. And while most headlines focus on AI applications, the real backbone of the sector—the infrastructure layer—is where long-term value is being built.
Check out my complete AI stock watchlist here!
AI infrastructure stocks are the “picks and shovels” of the AI boom. They don’t depend on which chatbot wins. They enable every model, platform, and application to function. These companies provide the raw performance, scalability, and security that AI requires. That’s why they’re worth watching now.
Table of Contents
- 1 7 AI Infrastructure Stocks To Watch
- 2 Why Invest in AI Infrastructure Stocks?
- 3 Challenges and Market Risks Associated with AI Infrastructure Stocks
- 4 What is the Future Outlook for AI Infrastructure Stocks?
- 5 Is Today the Best Time to Buy Infrastructure AI Stocks?
- 6 Key Takeaways
- 7 Frequently Asked Questions
- 7.1 What is the Difference between AI Infrastructure and AI Application Stocks?
- 7.2 Why are Chipmakers Essential to the AI Boom?
- 7.3 How Can I Assess which AI Infrastructure Stocks Have the Most Upside?
- 7.4 How Does AI Infrastructure Differ from Traditional IT Infrastructure?
- 7.5 How Can I Evaluate AI Infrastructure Companies for Investment?
7 AI Infrastructure Stocks To Watch
| Company | Ticker | Focus |
| NVIDIA | NASDAQ: NVDA | GPUs, data center AI hardware |
| Advanced Micro Devices Inc | NASDAQ: AMD | AI compute, custom chips |
| Broadcom | NASDAQ: AVGO | ASICs, networking, cloud chips |
| Arista Networks | NYSE: ANET | High-speed data center switches |
| Supermicro Micro Computer Inc | NASDAQ: SMCI | Servers, racks, liquid cooling |
| Marvell Technology Inc | NASDAQ: MRVL | Custom silicon, storage |
| Micron Technology Inc | NASDAQ: MU | Memory, high-bandwidth DRAM |
Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.
The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.
If you do decide to make a trade, I’ve got one piece of advice… USE AI TO TRADE AI!
I designed our IRIS AI bot exclusively for swing trading (it includes options now too).
Subscribers to the IRIS program get weekly analyst reports, training webinars, and best of all, access to the IRIS system itself.
The tool operates much like ChatGPT to produce screeners, trading plans, and more.
Master your swing trading strategy with our AI-driven tool today!
NVIDIA (NASDAQ: NVDA)
NVIDIA dominates the global GPU market. Its chips run nearly every AI model worth mentioning, from small startups to national compute grids. That dominance is expanding fast. The company’s rollout of Blackwell architecture, paired with massive deployments in Europe, is a sign of just how embedded NVIDIA has become in global AI infrastructure.
And that’s not the only major announcement from NVDA’s CEO Jensen Huang…
NVIDIA has both the profitable business and investment side of the equation going. It supplies tools and platforms that hyperscalers, sovereign clouds, and enterprise clients depend on. Its 90% GPU share, plus growing custom AI systems business, means it’s not just a chipmaker—it’s the foundation of the modern AI stack.
Even after a strong multi-year run, the company’s valuation remains tethered to its earnings growth. Forward revenue and performance metrics continue to trend higher. And that makes it one of the few large-cap tech stocks still showing upside in the current market.
Advanced Micro Devices Inc (NASDAQ: AMD)
AMD is NVIDIA’s closest competitor in AI compute. Its Instinct GPU line, paired with EPYC CPUs and ROCm software, is gaining traction with enterprise customers. The company recently locked in a $10 billion partnership with HUMAIN to deploy 500 megawatts of AI capacity across Saudi Arabia and beyond.
Read more: AMD’s Recent Surge: What’s Behind It?
For traders, this type of deal signals more than hype—it’s booked capital. AMD is extending its reach with full-stack solutions across chips, networking, and custom infrastructure. I’ve taught for years that you want to watch where the money is going—not just what’s trending.
AMD’s valuation is still reasonable relative to projected revenue expansion. Its decision to divest parts of its infrastructure manufacturing to Sanmina frees up resources for faster deployment cycles. While competition is fierce, AMD’s strategy is giving it a seat at the table in key hyperscale deployments.
Broadcom (NASDAQ: AVGO)
Broadcom plays a different angle in AI infrastructure. It leads in application-specific integrated circuits (ASICs), supplying custom AI chips to Google, Meta, and ByteDance. The company’s AI revenue grew 46% year-over-year, and guidance calls for continued acceleration as hyperscalers double down on deployment.
This is the kind of company I look for when teaching long-term trend alignment. It sits at the intersection of networking, compute, and enterprise platforms. Its acquisition of VMware also adds a high-margin infrastructure software segment that supports AI workloads across private cloud environments.
Recent earnings exceeded expectations, and Broadcom continues to generate strong free cash flow. Investors should watch its ability to secure and expand major client relationships. That’s where long-term growth in the infrastructure layer often plays out.
Arista Networks (NYSE: ANET)
Arista Networks builds the high-speed networking equipment that powers data centers and cloud infrastructure. Its switches are critical for reducing latency and boosting throughput across AI clusters. In Q1 2025, revenue hit $2.01 billion, up 28% year-over-year, fueled by cloud and enterprise demand.
What stands out to me is Arista’s consistent performance during volatile markets. This is a name I’ve pointed to when discussing execution strength. Despite tariff noise and supply challenges, Arista has consistently delivered strong earnings and maintained high margins.
The company’s customer base includes major AI spenders like Microsoft and Meta. It continues to grow through demand for scalable network architecture needed to handle massive AI workloads. As deployment scales, the need for faster, more reliable networking only increases.
Supermicro Micro Computer Inc (NASDAQ: SMCI)
Supermicro is gaining attention for its end-to-end AI server systems, rack-level solutions, and liquid cooling technology. The company recently announced a $20 billion partnership with DataVolt to build hyperscale AI campuses in Saudi Arabia. This gives Supermicro a seat at the table in some of the largest greenfield data center builds globally.
I advise you to track where a company’s money is going. This deal gives Supermicro a long-term pipeline tied directly to sovereign and enterprise AI demand. That’s a rare level of visibility in the hardware segment.
I loved this stock in 2024…
In 2025, it’s been clawing its way back to relevancy!
With more than 70% of its revenue now tied to AI platforms, the company is riding the wave of hardware modernization. It offers faster deployment, lower total cost of ownership, and efficient power usage—three things enterprise customers care about when scaling AI. That combination gives SMCI solid footing despite near-term volatility.
Marvell Technology Inc (NASDAQ: MRVL)
Marvell is expanding its role in AI with custom silicon solutions and key partnerships. Its recent earnings report beat expectations, and the company’s collaboration with NVIDIA continues to anchor its AI infrastructure growth. Analysts project earnings could reach $2.6 billion by 2028 if momentum continues.
This is a name I look at for traders who want exposure to breakout segments. Marvell is scaling custom AI chip programs for large clients, making it a key supplier in emerging data center infrastructure builds. It also plays in adjacent sectors like 5G and cloud storage.
While it hasn’t fully matched peer returns in the past year, its five-year total shareholder return is over 100%. With strong growth in AI packaging and memory interface systems, Marvell has multiple levers to drive long-term upside.
Micron Technology Inc (NASDAQ: MU)
Micron provides the memory foundation for AI infrastructure. It produces high-bandwidth memory (HBM) and DRAM—key components for AI accelerators and training clusters. As model complexity and data inputs grow, memory bottlenecks become a critical concern. That puts Micron in a strong position.
I teach traders to think about real-world systems, not just stock tickers. AI models can’t scale without high-performance storage and memory to support training and inference. Micron’s supply chain discipline and production capabilities give it pricing power when demand spikes.
The company is investing in new capacity and has secured several long-term supply contracts with major GPU vendors. For investors looking for a complementary piece in an AI infrastructure portfolio, Micron offers exposure to one of the most critical components behind performance scalability.
Why Invest in AI Infrastructure Stocks?
AI infrastructure stocks are the backbone of the artificial intelligence revolution. While apps and models get the headlines, it’s the hardware, cloud services, and data center systems that make the whole thing run. These stocks let investors tap into high-growth segments without betting on a single use case or application.
Enabling Technology
Every AI breakthrough depends on compute power. These companies build the chips, servers, and networking that train and deploy AI models. No data center runs on promises—it runs on hardware. That makes infrastructure names indispensable, not optional.
High Demand
Enterprise AI adoption, cloud computing, and exponential data growth are driving surging demand. This translates into stable revenue and strong growth visibility. When major clients allocate capital, infrastructure is often the first line item.
“Picks and Shovels” Approach
Traders should think like business builders. Infrastructure stocks support all players in the AI race. Whether a company is deploying NLP, computer vision, or robotics, it needs scalable infrastructure to run. This makes infrastructure stocks less dependent on which front-end platform wins.
Long-Term Growth Potential
AI adoption is expanding from chatbots to defense, logistics, healthcare, and industrial automation. That means decades of investment ahead. Companies that enable AI scaling are positioned to grow as the use cases compound.
Diversification
With exposure across semiconductors, data centers, cloud services, and networking, these stocks give traders a diversified path into AI. You don’t have to pick winners in software if you own the companies selling the tools to everyone.
Challenges and Market Risks Associated with AI Infrastructure Stocks
AI infrastructure comes with opportunity, but it’s not without risk. These companies operate in a fast-moving, capital-intensive sector where execution, innovation, and geopolitics all matter.
Supply Chain Disruptions
Semiconductor shortages, manufacturing delays, or logistics constraints can impact production. If critical components like GPUs or memory chips get held up, revenue timing gets hit.
Competitive Pressures and Rapid Technological Change
The pace of hardware innovation is intense. Falling behind a product cycle or missing a spec upgrade can cost market share quickly. It’s important to track which companies are hitting deployment targets.
Geopolitical Tensions Affecting Chipmakers
Trade restrictions, especially between the U.S. and China, can block exports or limit access to advanced tooling. Any disruption in cross-border chip flows hits the entire ecosystem.
Regulatory Oversight of AI Technologies
As AI scales, so does scrutiny. Governments are targeting data privacy, surveillance applications, and algorithm transparency. Compliance costs may rise for infrastructure providers supporting regulated use cases.
What is the Future Outlook for AI Infrastructure Stocks?
The outlook for AI infrastructure is strong. Every industry adopting AI—from retail to biotech—requires more compute, storage, and networking. The trend is clear: AI spending continues to shift toward large-scale, high-performance infrastructure.
Cloud providers, telecom companies, and governments are all funding massive infrastructure builds. That demand feeds the order books of the companies on this list. Long term, infrastructure will remain the first link in the AI value chain—and one of the most defensible.
Investors should watch earnings reports, new design wins, and capital expenditure trends. These indicators tell you where momentum is building. With the right positioning, AI infrastructure stocks can offer years of compounding returns.
Is Today the Best Time to Buy Infrastructure AI Stocks?
Timing matters. But long-term positioning matters more.
Right now, many AI infrastructure stocks are trading off their highs. That reflects broader market hesitation, not a break in the long-term growth thesis. For traders building conviction, that’s where opportunity lives.
I teach that price action should be paired with research. If you believe AI infrastructure spending will continue to scale over the next decade, this is the kind of sector you accumulate into weakness—not chase during hype cycles.
Use proper sizing. Define your risk. And focus on companies with strong execution, solid customer contracts, and high reinvestment potential.
Key Takeaways
- AI infrastructure stocks power the entire AI ecosystem through chips, servers, networks, and cloud platforms.
- Names like NVIDIA, AMD, and Supermicro are enabling large-scale deployment across industries and countries.
- While risks exist, long-term demand for scalable AI infrastructure supports continued investment across this segment.
This is a market tailor-made for traders who are prepared. AI stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.
These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.
If you want to know what I’m looking for — check out my free webinar here!
Frequently Asked Questions
What is the Difference between AI Infrastructure and AI Application Stocks?
AI infrastructure stocks build the tools—chips, data centers, networking gear. AI application stocks build the software. Infrastructure supports all apps, making it more diversified and foundational to adoption.
Why are Chipmakers Essential to the AI Boom?
Chips like GPUs handle model training and inference. Without them, AI doesn’t run. Companies like NVIDIA and AMD build the compute cores driving global AI deployment.
How Can I Assess which AI Infrastructure Stocks Have the Most Upside?
Track revenue growth, margin trends, product deployment cycles, and enterprise contracts. These performance metrics help identify which companies are gaining share and scaling efficiently.
How Does AI Infrastructure Differ from Traditional IT Infrastructure?
AI infrastructure is built for parallel compute, high bandwidth, and low latency. Traditional IT handles general workloads. AI systems demand higher performance and specialized hardware configurations.
How Can I Evaluate AI Infrastructure Companies for Investment?
Focus on scalability, innovation pipeline, customer adoption, and capital allocation. Use valuation models that incorporate both revenue growth and margin expansion tied to AI demand. Look for companies reinvesting into next-gen infrastructure to stay ahead of the curve.