AI Stocks Shine Bright Ahead of Next Fed Rate Decision

The Federal Reserve's recent rate hike has sparked interest in durable growth stories tied to long-lived spending plans, particularly those related to artificial intelligence (AI). Three AI stocks stand out as buys before the next Fed decision: Qualcomm, Marvell, and Supermicro.

Qualcomm is expanding its business from mobile chips into AI PCs and hyperscale data centers. The company recently announced a multi-generational product collaboration with Amazon to build custom AI chips and optical connectivity for Amazon Web Services (AWS) data centers. This deal allows Amazon to purchase up to $60 billion of Qualcomm's AI data center products over time.

Marvell has become a key supplier of the 'plumbing' inside AI data centers, including a super-fast computer traffic controller that helps thousands of AI chips communicate with each other faster while using less electricity. The company's management is explicit about its higher revenue trajectory driven by AI networking and custom XPU silicon.

Supermicro designs and sells complete server and storage systems optimized for AI, high-performance computing, and cloud workloads. The company has about $60 billion in AI orders, making it a strong player in the market.