Post by Augustine Chiagozie (@pabloexchange)

⚡️ 4 stocks powering the AI buildout

Modern AI systems are thousands of chips connected together. As companies spend more on AI infrastructure, a large share of that spending goes into the networking layer that moves data between chips, memory, and servers.

🖱 $AVGO — AI connectivity king

Broadcom provides the networking chips that connect massive AI clusters and also designs custom AI accelerators for hyperscalers. AI semiconductor revenue reached $10.8B in Q2 FY26, up 143% YoY, with guidance for $16B in Q3 and an AI backlog above $73B.

🖱 $ALAB — rack-scale connectivity pure play

Astera Labs builds the traffic-control layer inside AI racks, helping data move efficiently between chips, memory, switches, and accelerators. Q1 FY26 revenue reached a record $308M, up 93% YoY, with its new Scorpio switch expected to become the company's largest product line by year-end.

🖱 $CRDO — copper connectivity leader

Credo dominates active copper connections used inside AI systems and holds an estimated 75% market share. FY26 revenue reached $1.34B, up 206% YoY, while the transition to faster 1.6T networking creates a new upgrade cycle for customers.

🖱 $AAOI — vertically integrated optics
When data moves across large AI data centers, fiber optics become essential. Applied Optoelectronics manufactures both optical modules and the lasers inside them. Q1 FY26 data center revenue grew 154% YoY to $81M, with management raising full-year guidance to $1.1B.

The AI buildout is not just about chips. The companies connecting those chips are becoming critical parts of the stack.

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