Photo by Steve Johnson on Unsplash
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.This week, Tracey was joined by Zacks Senior Strategist, Kevin Cook, to look at what companies are benefiting from the AI revolution, besides NVIDIA. Sure, NVIDIA is selling a lot of chips. But those chips are going into hundreds of data centers, with more on the way.Who will build the data centers? Cool them? Fit them out with racks for the chips?There are a bunch of companies that stand to benefit from the AI revolution.Do you know who they are?
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1. Oracle Corp. (ORCL – Free Report)Oracle, which has not been on the radar of many investors, posted a bullish first quarter fiscal 2025 earnings report recently. Chairman Larry Ellison gushed about the need for thousands of data centers as the AI revolution picked up speed.Shares of Oracle soared, hitting new highs. It is up 46% over the last year. Earnings for fiscal 2025 are expected to jump 11.3% and another 13% in fiscal 2026. Oracle trades with a forward P/E of 26.6.Should Oracle be on your AI short list?2. Modine Manufacturing Co. (MOD – Free Report)Modine Manufacturing is a Wisconsin-based thermal management company with a market cap of just $6.8 billion. On Sep 11, 2024, Modine held an Investor Day where it laid out its multi-year strategy. Data center revenue is expected to rise to 30% of revenue in FY 2027 from 12% in FY 2024.Shares of Modine Manufacturing are up 162% in the last year. However, it has a PEG ratio of just 0.9. A PEG under 1.0 indicates both value and growth.Should Modine Manufacturing be on your AI short list?3. Sterling Infrastructure, Inc. (STRL – Free Report)Who is going to build the data centers? Sterling Infrastructure. This mid-cap infrastructure company with a market cap of $4.5 billion not only builds data centers but also pours foundations for the nation’s home builders.Shares of Sterling are up 78.6% in the last year to new highs. Earnings are expected to jump 26.6% this year. Sterling is still attractively priced with a forward P/E of 24.Should Sterling Infrastructure be on your AI, and housing, short list?4. Vertiv Holdings Co. (VRT – Free Report)Vertiv is a partner with NVIDIA in building out the interior infrastructure of the data center including the racks. It’s a large cap company with a market cap of $34 billion.Shares of Vertiv have rallied 132% over the last year but have been stalled in recent months. Earnings are expected to rise 45% in 2024. Vertiv isn’t cheap, with a forward P/E of 34.Should Vertiv be on your AI short list?5. Super Micro Computer, Inc. (SMCI – Free Report)Super Micro Computer is a partner with the AI chip makers on the data center infrastructure. It has a market cap of $25 billion.Shares of Super Micro Computer have been on a wild ride the last year, as they soared before selling off. SMCI is still up 78% over the last year but in the last 3 months, it has plunged 52%. Super Micro Computer is the cheapest of the bunch, with a forward P/E of just 13.Super Micro Computer is splitting its shares 10:1 on Oct 1, 2024.Should Super Micro Computer be on your AI short list?More By This Author:Bear Of The Day: Malibu Boats Nvidia Earnings Preview: Will It Beat Again? 5 Best Of The Best Stock Picks
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