If AI infrastructure truly scales up, these three giants will matter

Artificial intelligence and data infrastructure are at the heart of some powerful global changes, from trade patterns and tariffs to supply chain resilience and digital finance. For investors, the combination can create both opportunity and extra risk, as certain stocks become directly exposed to these themes. This article focuses on large companies in the US, UK, and Canada related to AI and data infrastructure quality, rather than just hype. We see how current news catalysts ripple into this theme, and our artificial intelligence and data infrastructure screen reveals three stocks that appear to be actively exposed to these trends.

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Marvell Technology (MRVL)

overview: Marvell Technology designs and sells high-performance semiconductor chips that are at the heart of modern AI data centers, cloud storage, and networking, helping to quickly move and process data between servers, memory, and devices around the world.

operation: Marvell generates approximately US$8.7 billion from the design, development and sale of integrated circuits, with revenues concentrated in China (US$3.3 billion), other international markets (US$2.5 billion), Taiwan (US$1.8 billion) and the United States (US$1.0 billion).

Market capitalization: 252.7 billion USD

Marvell is at the center of AI infrastructure, supplying the custom chips, optical interconnects, and CXL switches that leading cloud providers are using to build ever-larger AI clusters. This role is underlined by Nvidia’s US$2 billion investment and collaboration around NVLink Fusion. Management comments point to strong demand for AI data centers. However, the stock currently boasts a very high P/E ratio and is trading well above DCF-based fair value estimates, so expectations are low. High reliance on hyperscalers’ capex, tariff uncertainty, and recent insider sales raise the risk side of the equation. For investors looking for exposure to AI hardware with both notable growth drivers and valuation pressures already reflected in the stock price, Marvell may warrant further investigation.

Marvell’s AI plumbing story is accelerating, but its P/E growth and reliance on hyperscalers raise big questions about what’s already priced in. Get the big picture with 2 major rewards and 3 important warning signs

Advanced Micro Devices (AMD)

overview: Advanced Micro Devices is a global semiconductor company that supplies CPUs, GPUs, and AI accelerators used in data centers, PCs, game consoles, and embedded systems to power everything from cloud AI training to high-end gaming and automotive applications.

operation: AMD has approximately US$37.5 billion in revenue, with data center making the most at US$18.7 billion, followed by clients at US$11.2 billion, games at US$4 billion, and embedded at US$3.5 billion.

Market capitalization: USD 775.4 billion

Investors focused on AI infrastructure may consider AMD, which supplies AI accelerators, EPYC data center CPUs, and adaptive chips, to support a similar surge in AI-related computing that is driving global trade in AI products faster than many other categories. Recent earnings calls reported data center and AI products as key areas of focus, and management commentary noted growing demand for both GPU and CPU computing as agent AI and complex workloads expand. At the same time, AMD trades at a high valuation, faces intense competition from Nvidia, custom chips and export controls, and relies on heavy investments and external borrowings, while insiders are selling their shares. A central consideration for investors is whether current expectations already reflect most of the potential from this AI opportunity, or whether there is room for further upside in execution and return quality.

AMD’s AI story looks strong, but the real tension is whether expectations are already too high or whether we still underestimate the upside. Unfiltered view of analyst forecasts for Advanced Micro Devices

Arm Holdings (ARM)

overview: Arm Holdings licenses its chip designs and computing platforms that power billions of devices, from smartphones and cars to cloud servers and AI hardware, and collects royalties every time a partner ships a chip using its IP.

operation: Arm generates approximately USD 4.9 billion from semiconductor equipment and services, with revenue concentrated in the United States at USD 1.8 billion, followed by China at USD 874 million, Japan at USD 825 million, Taiwan at USD 695 million, South Korea at USD 392 million, and other countries at USD 373 million.

Market capitalization: USD 370 billion

Arm is at the crossroads of the AI ​​boom, with a growing share of energy-efficient architectures in smartphones, edge devices, and AI data center CPUs. Meanwhile, global trade in AI-related goods is growing much faster than other categories. The company is benefiting from rising royalties on new platforms and strong licensing demand related to AI workloads. However, the stock trades at a significant premium to several valuation metrics and relies on continued execution in new areas such as CPUs with a focus on computing subsystems and AGI. Additionally, the FTC’s investigation into customer concentration in premium smartphones, exposure to China, and licensing creates a strong AI IP story that also comes with meaningful implementation and regulatory risks that investors will want to understand more deeply.

Arm’s loyalty flywheel and AI reach look strong, but the real surprise may be where the growth will occur next. Get the background on analyst forecasts and key pressure points for Arm Holdings

The three stocks in this article are just a starting point. The Complete Artificial Intelligence and Data Infrastructure Screen reveals an additional 46 large US, UK, and Canadian companies related to AI and data infrastructure, each with their own compelling story. Use Simply Wall St to identify and analyze the specific catalysts, risks, and storylines that are important to you so you can focus on the highest-conviction plays within this theme.

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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