Nvidia's Nscale Backing Spots Light on Critical AI Infrastructure Stocks

Nvidia's recent backing of Nscale's US listing at up to $35 billion valuation has drawn fresh interest in the infrastructure spending supporting AI data centers. This spotlight is shining on the companies that supply the 'plumbing' for AI, and capital is searching for the next critical picks and shovels. Three US and UK stocks from the AI data center and cloud theme are being closely watched: Astera Labs (ALAB), Lattice Semiconductor (LSCC), and Kingsoft Cloud Holdings (KC).

Astera Labs designs semiconductor and software connectivity solutions that link high-speed chips, memory, and servers inside cloud and AI data centers. With a market cap of $50.9 billion, the company generates about $1.2 billion from semiconductors, with sales concentrated in China ($395m), Singapore ($384m), and Taiwan ($313m). Astera Labs' customer mix, pricing power, and contracts may be decoupling beneath the surface, which could impact its margins and growth.

Lattice Semiconductor develops low-power FPGA chips and software that help control, secure, and accelerate data center and edge AI hardware. With a market cap of $15.8 billion, the company generates about $651 million from its Core Lattice segment, with revenue concentrated in Greater China, the Americas, and Europe. Lattice's attach rate as a companion chip for AI accelerators, servers, and networking equipment is accelerating under the surface.

Kingsoft Cloud Holdings runs cloud infrastructure and AI-ready services for enterprises and internet platforms, primarily across mainland China. With a market cap of $3.0 billion, the company generates about CN¥11.0b in revenue from internet software and services, almost entirely from mainland China customers. The accelerating commoditization of basic cloud infrastructure services and intensifying price competition may put pressure on Kingsoft Cloud's pricing power.