7 High-Growth Stocks at the Heart of the AI Buildout

About this video

• Video Title: 7 High-Growth Stocks at the Heart of the AI Buildout
• Channel: MarketBeat
• Speakers: Chris Marott, Bridget (host)
• Duration: 20:49

Overview

This video discusses the burgeoning AI infrastructure buildout, highlighting its significant growth potential for investors. It identifies seven high-growth stocks poised to benefit from this trend, with a particular focus on companies involved in data centers, liquid cooling, semiconductors, and networking. The video also touches upon the broader market trends and the long-term outlook for AI infrastructure investment.

Key takeaways

• AI Infrastructure is a Long-Term Growth Story: The AI infrastructure buildout is expected to continue for several years, potentially decades, representing a significant investment opportunity comparable to historical infrastructure projects like the interstate or railroad systems.
• Liquid Cooling Market is Exploding: The demand for liquid cooling solutions in data centers is rapidly increasing, with projections showing a significant rise in adoption by 2028, making it a key area for investors.
• Key Players in AI Infrastructure: The video highlights specific companies involved in various aspects of AI infrastructure, including:
  • Envent Electric (NVT): A significant player in the liquid cooling market, collaborating with major hyperscalers.
  • Verdive Holdings (VRT): Another company providing liquid cooling solutions, seeing strong recent performance due to hyperscaler commitments.
  • Nvidia: A dominant force in AI infrastructure, essential for its market share and continuous innovation in chip technology.
  • Broadcom: A chipmaker providing ASICs, high bandwidth memory controllers, and networking chips, aiming to reduce dependency on Nvidia.
  • Super Micro Computer (SMCI): Offers customizable servers and racks that integrate GPUs and chips, serving as the "skeletal frame" for AI infrastructure.
  • Arista Networks (ANET): Provides the networking connections essential for AI clusters to function, holding strong partnerships with hyperscalers.
  • Pacer Data and Digital Revolution ETF (TRFK): An ETF offering diversified exposure to the AI infrastructure and data center space, including some of the previously mentioned stocks.
• Investment Thesis: Investors are advised to look towards future earnings potential rather than just current valuations, as the AI infrastructure buildout is still in its early stages. While some stocks may seem premium-priced, the long-term growth prospects justify the investment.