The five largest hyperscalers (owners of large data centers) are set to spend more than $700 billion on artificial intelligence (AI) infrastructure this year alone. This is a huge amount that exceeds the gross domestic product (GDP) of many countries.
Let’s look at three AI stocks well positioned to take advantage of this cost.
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As the undisputed leader in AI infrastructure, Nvidia (NASDAQ: NVDA ) Definitely one of the companies best positioned for its AI data center spend. The company has already grown tremendously, increasing its revenue eightfold over the past three years to $215.9 billion for the 2026 fiscal year that ends in January. Its revenue is growing rapidly, rising 73% year-over-year over the previous quarter.
Nvidia has emerged as the muscle behind AI workloads with its graphics processing units (GPUs). However, the company is now more than just chips. Its network portfolio was actually its fastest-growing business, with revenue rising 264% to $11 billion last quarter. Nvidia now offers end-to-end AI server solutions, which should help take more of those AI costs.
Meanwhile, the stock is attractively valued, trading at a forward price-to-earnings (P/E) ratio of 22 times based on current fiscal year analyst estimates.
In order for GPUs and other AI chips to perform optimally, they need to be packaged with a special type of dynamic random access memory (DRAM) called high-bandwidth memory (HBM). As the demand for AI chips rises, so does the demand for HBM. At the same time, these ingredients are in short supply. Not only is HBM more complex to manufacture, but it also requires up to three times the wafer capacity of typical DRAM. This left the entire DRAM market in tight supply, which drove up prices.
Along with Korean companies as the three largest DRAM manufacturers Samsung and SK Hynix, Micron Technology (NASDAQ: MU ) It is well positioned to take advantage of this trend. The company saw its revenue increase 57% last year compared to the previous quarter, while more importantly, its gross margin increased to 56% from 38.4% a year ago. This leads to huge gains in profit and cash flow.
Meanwhile, Micron’s stock is cheap due to its historical cyclical nature, trading at a forward P/E of just 11.5 times 2026 fiscal analyst estimates (end of August) and just 8.5 times 2027 fiscal consensus. Micron is looking for long-term contracts for HBM, and if the company can shake off some of the cyclicality of its business given the big secular growth in AI infrastructure, the stock could have more upside from here.
