5 Stocks Winning the AI Race While Everyone Watches NVIDIA
The article argues AI infrastructure beneficiaries beyond NVIDIA. It cites Micron revenue tracking toward $58B and net income at $24B, with next earnings June 24. It highlights Coherent’s silicon photonics (NVIDIA $2B stake), Vertiv’s liquid cooling, Constellation’s $1.6B Three Mile Island restart (835 MW) under a Microsoft deal, and Eaton’s grid equipment backlog. It notes transformer lead times up to 2.5 years.
How this was made
The 30-second read
Why it matters
It links AI cluster scaling to specific infrastructure suppliers and frames upcoming earnings as checkpoints for demand durability.
Market read
A sector read-through for AI infrastructure names, with concrete catalysts (NVIDIA stake in Coherent; nuclear contract/capex; earnings dates for Vertiv and Eaton) used to justify trading setups.
What to watch
Interconnection delays and long lead times can push revenue recognition out; also, capex cycles and power pricing/regulatory changes could alter contract economics for nuclear and grid equipment.
Background
The article argues NVIDIA’s AI hardware transition (Rubin chips moving from HBM3E to HBM4) strengthens the broader supply chain and highlights bottlenecks in connectivity, cooling, power, and grid interconnection.
Ticker impact
Coherent is highlighted as the leading supplier of silicon-photonics optical transceivers for AI clusters, with NVIDIA taking a $2B stake.
Bias toward relative outperformance on AI infrastructure demand and any confirmation around transceiver orders.
The article is a sector thesis with a specific catalyst (NVIDIA stake) but no new COHR financials or guidance.
Vertiv is cited as supplying cooling distribution units for hyperscaler build-outs, with a >10% pullback before Memorial Day and upcoming July 29 earnings.
Potential near-term bid into earnings if investors view the pullback as overdone versus cooling demand.
No Vertiv-specific earnings update is provided; the trade setup relies on valuation/technical timing plus a demand read-through.
Constellation Energy is presented as the largest U.S. nuclear operator, investing $1.6B to revive Three Mile Island under a 20-year Microsoft deal.
Support for a positive re-rating if power-demand headlines persist and the market rewards nuclear baseload contracts.
The article includes concrete capex/contract details, but the stock move is described as flat and the thesis is broader than a new CEG event.
Amazon’s 17-year, $18B power purchase agreement with Talen Energy is cited as evidence Big Tech is locking up baseload supply.
Potential incremental upside if investors extend the read-across from Big Tech power deals to TLN’s contracted cash flows.
The deal is referenced as context (underscoring the trend) rather than a newly announced TLN-specific development in the article.
Eaton is highlighted as the grid-infrastructure supplier for data centers, with multi-year backlogs and next earnings on August 4.
Earnings-driven upside bias if backlog conversion and data-center order momentum remain intact.
The article provides specific timing (Aug 4) and backlog framing, but no new ETN numbers or guidance changes.
Market effects
Reinforces a multi-layer AI infrastructure trade: photonics for bandwidth, liquid cooling for thermal limits, and baseload/grid build-outs as gating factors.
Grid hookup lead times (e.g., northern Virginia) imply regional utility interconnection constraints can delay capacity and shift demand toward equipment suppliers.
If hyperscalers globally face similar power/grid constraints, equipment and power-contracting beneficiaries could see broader demand read-through beyond the U.S.
Counterpoint
The piece is largely a thematic “AI race” basket; without fresh company-specific guidance, price action may already reflect the narrative and earnings could disappoint on margins or timing.
Key entities
- companyCoherent Corp.
Optical transceiver supplier for silicon photonics in AI clusters; NVIDIA took a $2B stake earlier this year.
- companyVertiv Holdings
Cooling distribution units supplier for hyperscaler build-outs; pullback cited ahead of July 29 earnings.
- companyConstellation Energy
U.S. nuclear operator investing $1.6B to revive Three Mile Island under a 20-year Microsoft deal.
- companyEaton Corporation
Transformer/switchgear supplier; data centers cited as fastest-growing end market with multi-year backlogs and Aug 4 earnings.
