Artificial intelligence (AI) is generating significant momentum in the stock market, with major corporations ramping up their investments in AI infrastructure. The leading hyperscalers—Microsoft, Alphabet, Amazon, and Meta Platforms—have collectively announced plans to allocate as much as $650 billion this year towards AI advancements, including capital expenditures for chips and data center enhancements. While stock prices for these firms have seen some fluctuation as investors weigh the implications of such substantial financial commitments, analysts suggest that now may be an opportune time to focus on companies supplying AI infrastructure, which stand to benefit considerably from this global AI expansion.
Among the frontrunners in this sector is Nvidia (NVDA), whose graphics processing units (GPUs) serve as the backbone for data centers, enabling them to perform complex AI tasks. The company’s GPUs are widely regarded as the current gold standard for the development, training, and operation of AI platforms. Nvidia is expected to report quarterly earnings on February 25, and projections indicate a strong performance. In its last earnings report, which covered the fiscal third quarter of 2026, Nvidia recorded a staggering $57 billion in revenue, with a significant $51.2 billion stemming from its data center segment. As demand for Nvidia’s Blackwell GPUs remains robust, anticipation surrounds the upcoming release of its next-generation Vera Rubin chips.
Another key player is Taiwan Semiconductor Manufacturing (TSMC), which occupies a pivotal position in the chip manufacturing landscape. While chip designers like Nvidia lack fabrication capabilities, TSMC has emerged as the preferred foundry for leading chipmakers, producing over 11,800 products utilizing 288 unique processes in 2024. TSMC specializes in manufacturing powerful chips with increasingly small transistors, enhancing both efficiency and performance. As of 2023, TSMC derived more than half of its revenue from chips larger than 7 nanometers, but by the fourth quarter of 2025, chips at 3nm or 5nm accounted for 63% of its shipments.
In the realm of AI data centers, Nebius Group (NBIS) stands out as a significant contender. This Dutch company specializes in constructing data centers that provide full-stack AI cloud platforms, which serve developers and hyperscalers in training and executing AI applications. Currently utilizing Nvidia GPUs, Nebius is rapidly expanding its operations; by the end of 2025, it had 220 megawatts of power connected to its data centers, with plans to increase that figure to between 800 megawatts and 1 gigawatt by the end of this year. Notably, Nebius has contracts potentially worth up to $19.4 billion with Microsoft and $3 billion with Meta Platforms to deliver AI computing capacity, positioning it favorably for further growth.
For those looking to invest in data centers through a real estate investment trust (REIT), Digital Realty Trust (DLR) offers an attractive option. With over 300 data centers across 50 metropolitan markets, the company serves prominent clients, including Nvidia, Amazon, Microsoft, and Alphabet. Digital Realty’s revenue reached $1.6 billion in the fourth quarter, reflecting a 14% increase year over year, while earnings per share improved from $0.15 to $0.24 over the same period. The trust also provides a dividend yield of 2.8%, making it a compelling choice for yield-seeking investors.
Lastly, Credo Technology Group (CRDO) plays a crucial role in connecting the chips in data centers. The company manufactures what it terms Active Electrical Cables (AECs), which outperform traditional copper cables in linking clustered chips. These cables utilize signal processors to facilitate faster and more efficient data transmission. Credo’s earnings for the second fiscal quarter of 2026 highlighted a remarkable revenue increase of 272% from the previous year, totaling $268 million. Looking ahead, the company anticipates revenue between $335 million and $345 million for the next fiscal year.
As the AI sector continues to accelerate, the infrastructure companies that support this growth are poised for substantial opportunities. With major investments from industry leaders and a rising demand for advanced computing capabilities, the landscape for AI infrastructure is evolving rapidly, suggesting a promising outlook for investors in this space.
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