Before the Next Nvidia-Style Run, Here Are 3 AI Stocks Worth Watching

Nvidia (NASDAQ: NVDA) has been one of the biggest beneficiaries of the artificial intelligence (AI) boom. Shares have already soared by more than 1,300% in the past five years. However, the next big AI stock gains may come from less obvious players.

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As AI infrastructure spending expands, demand is rising not just for AI chips but also for high-speed connectivity technologies that enable the movement of massive amounts of data between servers and across data centers.

Against this backdrop, here's why these three AI-powered tech stocks are worth watching for a potential Nvidia-style run in the coming years.

Astera Labs

Astera Labs (NASDAQ: ALAB) designs high-speed connectivity chips and hardware that enable AI chips, servers, and memory to communicate efficiently within modern data centers. AI spending is increasingly shifting away from training large models toward running AI applications at scale. Subsequently, demand for connectivity solutions that enable faster and more efficient data movement across data centers is also growing significantly. Astera is well-positioned to capitalize on this opportunity.

Astera's recent financials highlight its growing momentum. Revenue surged 93% year over year to $308.4 million, while adjusted earnings per share (EPS) rose 84.8% year over year to $0.61 in the first quarter of fiscal 2026 (ending March 31, 2026). Management now expects Q2 revenue in the range of $355 million to $365 million, up 15% to 18% sequentially.

Astera has already shipped millions of PCIe Gen 6 ports, high-speed connections that help move data quickly between AI chips, memory, and servers. These products accounted for more than one-third of the company's Q1 revenue. The company's Scorpio switch family (connectivity chips that help large groups of AI processors communicate faster) is also ramping quickly. The company expects Scorpio to become Astera's largest product line by the end of 2026 even though it accounted for just 15% of the total revenue in fiscal 2025.

The long-term opportunity could be even larger. Astera estimates it can generate more than $1,000 in revenue per AI processor deployed on a server. The company is also developing connectivity products for Nvidia's NVLink Fusion ecosystem, which is designed to help different AI processors communicate efficiently within large AI systems.

Astera's stock has already soared 225% in the past year. However, if the company continues expanding its role in next-generation AI infrastructure, the stock may soar even higher.

Marvell Technology

Marvell Technology (NASDAQ: MRVL) designs custom AI chips, networking products, and optical interconnect technologies that help move massive amounts of data between processors, servers, and data centers.

Marvell's growth outlook is impressive. Management expects the company's fiscal 2027 revenue to grow year over year by more than 30% to nearly $11 billion. Revenue is then projected to grow another 40% year over year to $15 billion in fiscal 2028. Marvell's custom AI silicon business is expected to at least double year over year, while its high-speed connectivity, Ethernet switching, and optical networking businesses should also continue to expand in fiscal 2028. As a result, the company expects its overall data center revenue to grow nearly 50% year over year in fiscal 2028.

Nvidia recently invested $2 billion in the company, highlighting the strategic value of Marvell's semi-custom chips and advanced optical networking capabilities. The partnership aims to help customers integrate custom AI chips into Nvidia's AI infrastructure. As hyperscalers increasingly develop their own AI processors, this could create a major opportunity for Marvell's high-speed connectivity and optical technologies.

Marvell is also expanding into AI scale-up networking, a rapidly emerging market focused on connecting large AI systems more efficiently. The company's recent acquisitions of Celestial AI and Polariton Technologies strengthen its optical networking capabilities. Hence, as AI infrastructure grows larger and demands faster, more power-efficient connectivity, Marvell's optical networking business could become a key growth catalyst.

Marvell trades at almost 61.7 times trailing-12-month earnings, indicating that investor expectations are already high. But with data movement emerging as a key bottleneck to scaling AI systems, Marvell could prove to be one of the strongest long-term AI infrastructure picks, alongside Nvidia.

Credo Technology

Credo Technology (NASDAQ: CRDO) designs high-speed connectivity solutions that enable data movement between AI processors, servers, and networking equipment in modern data centers. One of its key businesses is active electrical cables (AEC), increasingly used for short-distance server connections due to their power efficiency and reliability.

Credo's revenue surged 201% year over year to $407 million in fiscal 2026 Q3. The company has guided revenue between $425 million and $435 million in Q4. Management also expects fiscal 2027 revenue to grow year over year by more than 50%, driven by continued demand from hyperscalers and newer cloud AI infrastructure providers. Credo also recently highlighted a fifth hyperscaler win, suggesting its customer base is continuing to expand.

Credo is trying to expand beyond being just a cable supplier by focusing on AI system reliability. The company's ZeroFlap technology is designed to reduce connection failures in large AI clusters where downtime can become extremely expensive. Management now expects its ZeroFlap optics business to ramp earlier than previously anticipated in fiscal 2027.

Credo is also preparing for the next phase of AI connectivity. The company announced a $750 million acquisition of DustPhotonics to strengthen its optical networking capabilities as AI data centers move toward faster, next-generation networking architectures.

Credo, however, is exposed to high customer concentration risk, with its top three customers accounting for 88% of its Q3 revenue. The company also trades at a very rich valuation of around 107.2 times trailing-12-month earnings.

Despite the risks, if Credo manages to expand from an AEC leader into a broader AI connectivity platform, the stock could still grow even at these elevated valuations.

Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Marvell Technology and Nvidia. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.