The AI data center boom is getting bigger, and investors are paying attention. MoneyFlows, a YouTube investing channel with nearly 10,000 subscribers, broke down why this sector has become one of the biggest themes in the stock market.
The channel noted that more than 50% of U.S. construction activity is tied to data center projects as AI demand pushes a full physical infrastructure buildout. This goes far beyond software.
It includes power systems, cooling, fiber optics, networking hardware, advanced chips, and manufacturing equipment. That spending is creating huge opportunities for companies at every layer of the AI stack.
Here are the 5 stocks.
What you'll learn 👉
Alphabet Is Still a Core AI Datacenter Stock
Alphabet is doing really well in AI. Their first-quarter numbers came out much better than anyone expected. They made $5.11 per share. Analysts only thought they would make $2.81. Sales were also higher than forecast. And the company said they will spend more on computers and equipment because they are getting ready for bigger TPU launches in 2027.
People on Wall Street think earnings will go up from $13.95 in 2026 to $17.60 in 2028. The stock price is about 28 times what the company is expected to earn next year. That is a fair price for a company worth $4.5 trillion.
Google Cloud brought in $10.4 billion in 2024. Businesses are spending more on AI, which means more money for Gemini and Google’s cloud tools.
Broadcom Is Powering AI Networking Growth
Broadcom is doing well because of AI data centers. The big cloud companies keep buying their chips. The company told investors to expect $22 billion in sales for the second quarter. Analysts were only looking for $20.5 billion. So that was a nice surprise. They also raised their profit forecast because more companies want their AI chips.
People think sales will go from $103.6 billion in 2026 to almost double that by 2028. The stock price is about 27.9 times next year’s expected earnings. The PEG ratio is 0.84, which means the price looks reasonable for how fast the company is growing. Its custom AI accelerators and high-speed Ethernet networking products are deeply integrated into large-scale cloud buildouts across Meta, Google, and OpenAI-linked projects.
Corning Is Steadily Winning the Fiber Optics Race
People do not talk about Corning as much as they talk about AI chip makers. But Corning makes the parts that help data centers talk to each other. That work is really important.
They signed a big deal with Nvidia. They think their optical business will bring in $8.35 billion in 2026. Then they think that number will grow to $13.36 billion by 2028.
The stock price is high compared to what the company earns. About 51 times. That is not cheap. But more cloud companies need faster fiber connections and better cable systems. So the demand keeps going up.
In 2024, their optical business made $5.6 billion. AI traffic keeps growing, and that pushes big networks to keep upgrading their equipment.
AMD Is Expanding Fast in AI Compute
The fact that AMD is emerging as one of the biggest beneficiaries of the AI revolution cannot be overstated. For instance, AMD reported $10.25 billion in sales revenue for the first quarter, topping forecasts of $9.9 billion on Wall Street, while its earnings estimates for the second quarter were also higher than the consensus among analysts.
With regard to its data centers, growth is projected from $30.3 billion in 2026 to $75 billion in 2028. AMD further anticipates that the data centers in the AI space will reach up to $120 billion by 2030, which represents double the projection made previously.
Lam Research Supplies the Entire AI Manufacturing Chain
Lam Research makes tools that chip companies cannot do without. Their last quarter brought in $5.84 billion. That was better than expected. For this quarter, they told investors to expect $6.6 billion. Analysts were only looking for about $6 billion.
People on Wall Street think sales will go from $23.2 billion in 2026 to $35.2 billion in 2028.
Chipmakers are spending more on equipment to make wafers. That spending could hit $140 billion in 2026. Every AI chip from Nvidia, AMD, or Broadcom needs manufacturing tools from companies like Lam.
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What Is Driving Stock Prices Right Now?
AI stocks received another boost as the overall stock market continued its ascent. On May 14, the S&P 500 index breached the 7,500 level for the first time ever, the Dow broke above 50,000, while the Nasdaq posted an all-time high of 26,495.19.
Shares of Nvidia pumped by more than 4% following news that the U.S. approved H200 chip exports to China, giving the company a valuation of $5.6 trillion. The stock price of Cisco soared by 15% on the back of a positive earnings report related to robust AI demand.
New economic figures boosted the upbeat sentiment in the financial markets. The retail sales in the United States climbed by 0.5% last month despite the high inflation, indicating that American households continue spending. Bond yields declined from their level of 11 months due to hitting their highest since November.
Another factor contributing to the positive sentiment was the negotiations on trade between Trump and Jinping of China. Market participants hope that smooth trade relationships will benefit the entire supply chain and the AI data centers sector.
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