AI Infrastructure Boom Continues with Next Wave of Potential Winners

Nvidia and Micron have seen huge gains since the AI boom started. Their stock prices have risen over 1,000% in just a few years.

Astera Labs and Arista Networks are two companies that could be next to benefit from the growing demand for AI infrastructure.

Astera designs specialized semiconductors and software that improve connectivity and data transmission across GPUs, CPUs, memory, and storage. Its product lines include Aries and Taurus, which boost data signals to improve communication within and between server racks, and Leo, which overcomes memory bottlenecks by allowing servers to share resources.

Astera's revenue increased 104% in the second quarter to $392 million. Wall Street estimates Astera's adjusted earnings will grow at 52% annually through 2027.