3 Top AI Stocks to Buy Now With Data Center Infrastructure Spending Set to Surge

2 months ago 19

Geoffrey Seiler, The Motley Fool

Mon, July 27, 2026 astatine 3:15 AM CDT 5 min read

With Alphabet precocious upping its superior expenditure (capex) fund to a whopping $195 cardinal to $205 cardinal and saying it plans to walk importantly much connected artificial quality (AI) infrastructure adjacent year, it has apt opened the floodgates for spending to surge crossed the industry. While determination has been interest astir a spending slowdown, determination are nary signs of 1 successful the adjacent future.

Let's look astatine 3 apical AI stocks to bargain close present connected this infrastructure spending surge.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

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Nvidia

A operation of a hypergrowth banal trading astatine a inexpensive valuation, Nvidia (NASDAQ: NVDA) tops the database of AI infrastructure stocks to buy. The institution is the wide person erstwhile it comes to AI exemplary grooming and has established a wide moat done its CUDA bundle platform. Most aboriginal AI codification was written utilizing CUDA and optimized for its almighty graphics processing units (GPUs), which is wherefore it dominates this lucrative market.

However, the institution has not sat still, and it besides remains good positioned for the inference and agentic AI markets. Its "acquisition" of Groq brought with it connection processing units (LPUs) that assistance heighten its inference offering, portion it's besides developed its ain ARM-based cardinal processing units (CPUs), which play a large relation successful managing AI agents. At the aforesaid time, its networking portfolio has been 1 of the fastest-growing parts of its business.

Nvidia has continued to spot breakneck growth, and the company's translation into a implicit AI infrastructure subordinate that tin supply customers end-to-end server solutions for circumstantial AI tasks could beryllium its adjacent large opportunity. With the banal trading astatine a guardant price-to-earnings (P/E) ratio of conscionable 16 times fiscal 2028 (ending January 2028) expert estimates, this is simply a large banal to bargain portion it's cheap, with AI infrastructure spending acceptable to surge.

SK Hynix

With surging AI infrastructure spending, determination volition beryllium a immense request for high-bandwidth representation (HBM), which successful crook volition payment SK Hynix (NASDAQ: SKHY). The Korean institution invented HBM and is the person successful the abstraction with implicit 50% marketplace share. It is besides the main supplier for Nvidia and the second-largest supplier for Alphabet's tensor processing units (TPUs).

HBM is simply a specialized signifier of DRAM (dynamic random-access memory) that gets packaged with GPUs and different AI chips. Right now, request for HBM is surging portion proviso remains tight, boosting not conscionable HBM prices but besides DRAM pricing. The crushed is that the large 3 DRAM makers are focused connected HBM, and they tin lone summation capableness truthful much. HBM and AI chips are some manufactured utilizing EUV (extreme ultraviolet lithography) machines, and lone 1 institution successful the world, ASML, makes them. At the aforesaid time, HBM uses astir 3 times the wafer capableness of mean DRAM, further constraining supply.

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