Important points
-
Beyond hyperscalar AI developers are infrastructure companies that supply the components that make AI work.
-
These are mostly small businesses with niche product lines, so they are experiencing explosive growth due to high demand.
AI stocks are driving the market’s rally as the world embraces artificial intelligence (AI) and companies that provide development infrastructure thrive. As a group, the industry is outperforming the market. One of the standard signals is Nasdaq-100which features trending tech stocks. S&P500 this year. Many exchange-traded funds (ETFs) focused on AI have fared even better. Please consider. Roundhill Generative AI and Technology ETF, iShares U.S. Power & Infrastructure ETF,and Pacer Data and Infrastructure Real Estate ETF.
Will AI create the world’s first millionaire? Our team published a report on one little-known company called an “essential monopoly” that provides critical technology needed by both Nvidia and Intel. Continued “
CHAT Total Return Level Data by YCharts
It’s only May, but some hot artificial intelligence stocks have already more than doubled. Please take a look bloom energy(New York Stock Exchange: BE), sandisk(NASDAQ:SNDK), lumen(NASDAQ:Light), micron technology(NASDAQ:MU)and intel(NASDAQ:INTC).
BE data by YCharts
This is why they can aim even higher.
1. Bloom Energy
Bloom Energy manufactures standalone energy servers using proprietary fuel cell technology that can power organizations from the grid. It has been in operation for 25 years and serves a wide range of industries from retail to space. However, it has exploded in popularity in the AI era because it can be easily deployed and scaled to power high-performance data centers.
They report amazing performance. First-quarter revenue increased 130% year-over-year, and management raised its full-year outlook from 60% growth to 80% growth. Operating cash flow turned positive, increasing $184.3 million to $73.6 million. Bloom has barely made a profit since its inception, but this sales growth has finally pushed it into profitable territory, with net income of $70 million for the quarter.
2. SanDisk
SanDisk is at the top of this year’s AI stories due to the growing demand for its NAND flash memory products for data storage. AI companies require a wide range of memory products, and SanDisk’s specialized technology can retain data without continuous power.
Image source: SanDisk.
Revenues are accelerating as demand soars and prices rise. In the third quarter of fiscal 2026 (ended April 3), revenue increased 251% year-over-year, driven by a 233% increase in data center revenue. Operating income increased 319% to more than $4 billion.
For now, management expects this situation to continue. Sales are expected to increase sevenfold in the fourth quarter, with adjusted earnings per share (EPS) of about $30, compared with a loss of $0.30 a year earlier.
3. Lumen
Lumentum manufactures optical products essential to high-speed data centers. It is one of the infrastructure providers that helps you move large amounts of data over broadband networks and connect servers at low cost.
Like other companies on the list, Lumentum had a completely different business serving other technologies such as medical devices and manufacturing, but now data centers drive the business.
The company reported a 90% year-over-year increase in revenue for the third quarter of its fiscal year 2026 (ending March 28), and generally accepted accounting principles (GAAP) operating income, up from a year-ago deficit. Chief Executive Officer Michael Hurlston said, “The simultaneous packaging of optical fiber and optical circuit switches, which is a major growth driver for our company, is beginning to gain momentum, and we can expect further improvement in profitability.”
4. Micron Technology
Micron also makes memory chips and has been in this business for a long time. Many types of technology, such as computers and smartphones, rely on memory chips to operate, and Micron makes DRAM memory chips that power short-term memory and high-bandwidth memory (HBM) chips. It also sells NAND memory chips.
Image source: Micron.
Business is booming because these are necessary components for AI chips. Revenue for the second quarter of fiscal 2026 (ending February 26) increased 70% year over year, and earnings per share increased from $4.60 to $12.07.
The company is benefiting from high demand and low supply, which management expects to continue in the short term.
5. Intel
Intel had a large technology business before the AI boom, but its inability to anticipate and respond to the changing technology landscape began to diminish its relevance. As the tech giants shifted away from Intel’s central processing units (CPUs) to graphics processing units (GPUs) and other AI chips to drive AI development, profit margins shrank while revenue fell.
However, CPUs are once again in high demand as they are required for advanced inference workloads. Intel is returning to growth with several key deals with major AI companies. Intel is backed by decades of technology leadership, and this could be a strong turnaround story in the coming months and years.
Should you buy Bloom Energy stock now?
Before buying Bloom Energy stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks What investors can buy right now…and Bloom Energy wasn’t one of them. These 10 stocks have the potential to generate impressive returns over the next few years.
when to think about it Netflix This list was created on December 17, 2004…if you invested $1,000 at the time of recommendation. That’s $469,293!* or when Nvidia This list was created on April 15, 2005…if you invested $1,000 at the time of recommendation. you have $1,381,332!*
Now, the important thing to note is that stock advisor Total average return is 993% — compared to the S&P 500’s 207%, a market-beating outperformance. Don’t miss our latest Top 10 list. stock advisorjoin an investing community built by retail investors, for retail investors.
See 10 stocks »
*Stock Advisor will return on May 17, 2026.
Jennifer Cybill has no position in any stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Intel, Lumentum, and Micron Technology. The Motley Fool has a disclosure policy.
