The AI Bottleneck Takes Many Forms. These 7 Stocks Will Benefit.

Source The Motley Fool

Key Points

  • Nvidia and Micron have gotten a lot of the attention in AI, but there's more to tell.

  • Lumentum and Coherent provide optical connectivity to allow data to move at high speeds.

  • GE Vernova, Bloom Energy, and Vertiv have important roles in power generation and cooling.

  • These 10 stocks could mint the next wave of millionaires ›

Artificial intelligence has a problem. Actually, it has several.

Technology companies are spending hundreds of billions of dollars building massive data centers to train and operate increasingly powerful AI models. But those investments won't accomplish much if companies can't get the chips, memory, electricity, and other equipment needed to make those facilities work.

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That creates bottlenecks for growth, and it's part of why AI stocks' performance has been choppy lately. The Nasdaq-100 Technology Sector Index is down more than 5% in the last week and 2% in the last 30 days. Investors recognize that even as chipmakers make more powerful processors, companies are encountering new AI-related limitations in memory, connectivity, power, and cooling.

These seven stocks represent companies that are addressing some of the AI industry's most important infrastructure constraints.

An illustration shows the letters AI on a square with circuits above and below and a bar chart and fever line running from side to side

Image source: Getty Images.

Nvidia: GPU supply

Nvidia (NASDAQ: NVDA) remains the dominant force in AI computing, supplying the GPUs that power many of the world's most advanced AI systems. Its Blackwell architecture has been central to the current expansion, while its next-generation Vera Rubin platform is in production. But demand continues to challenge Nvidia's manufacturing capacity.

In its fiscal second-quarter 2027 filing, Nvidia acknowledged ongoing supply constraints as it ramps production of both architectures.

The company is working to expand manufacturing capacity and secure components from suppliers. But the complexity of building increasingly powerful AI systems means producing enough chips remains a challenge.

Micron Technology: Memory

Micron Technology (NASDAQ: MU) is squarely in the bottleneck right now, as the industry has identified memory and storage availability as one of the major bottlenecks for today's manufacturers. That's why Micron stock is up more than 200% this year, and why its profits and revenue have gone through the roof.

The company makes high bandwidth memory (HBM), which allows AI processors to access data at high speeds. As AI models grow larger and more complex, memory capacity and bandwidth become increasingly important.

Micron reported fiscal fourth-quarter 2026 revenue of $54.23 billion, compared with $11.32 billion a year earlier, reflecting extraordinary demand for its products.

Lumentum: Optical connectivity

Lumentum (NASDAQ: LITE) makes high-speed optical links for GPU clusters. Its products convert electrical signals into light so they can be transmitted on fiber-optic cables. These technologies are increasingly important as AI data centers connect enormous numbers of processors across multiple racks and buildings.

The company is also working with Astera Labs and Corning on a new technology that uses light to move data between components inside AI server racks.

Lumentum reported fiscal fourth-quarter 2026 revenue of $1.01 billion and projected revenue between $1.225 billion and $1.275 billion for the following quarter.

Coherent: Optical networking

Coherent's (NYSE: COHR) lasers and optical connectivity equipment are used in data centers to convert data into pulses of light that are sent through fiber-optic cables.

Its data center and communications segment generated $1.615 billion in revenue during the fourth quarter of fiscal 2026, a substantial increase from $1.018 billion a year earlier.

GE Vernova: Power infrastructure

GE Vernova (NYSE: GEV) makes gas turbines, electrical equipment, and grid technologies needed to expand data center computing capacity.

During the second quarter of 2026, GE Vernova reported $24.2 billion in orders, an 88% organic increase, and its gas power equipment backlog and slot reservation agreements reached 116 gigawatts. Not all that demand comes from AI, but data center expansion is contributing to the need for additional power infrastructure.

Bloom Energy: On-Site Power

Bloom Energy (NYSE: BE) helps companies that can't get reliable electricity to their data centers. The company makes solid oxide fuel cells that can generate electricity on-site, allowing customers to reduce their dependence on traditional utility connections.

In April 2026, Bloom announced an expanded agreement with Oracle covering up to 2.8 gigawatts of fuel cell capacity, including an initial 1.2 gigawatts already contracted.

Vertiv: Cooling

Heat is a huge problem for data centers -- thousands of processors working together in proximity can do great things, but they generate a lot of heat. Vertiv (NYSE: VRT) supplies cooling systems, power management equipment, and other infrastructure needed to keep data centers operating.

The company is benefiting from demand for more sophisticated data center infrastructure, although expanding production and delivering increasingly complex projects present challenges.

For AI operators, cooling isn't optional. Without it, even the most powerful processors can't operate reliably.

Where the next bottleneck could be

Today, the major bottleneck is with memory. Next year, it could be something else entirely, and any of these other companies could see the huge gains in stock price that Micron shareholders are enjoying today. The AI industry's constraints won't vanish. But they'll shift.

Investors looking beyond AI software and GPUs have plenty of companies to examine. Businesses at the center of these infrastructure constraints could play an important role in determining how quickly AI continues to expand.

Missed AI’s "Act 1"? Act 2 Could Be 14x Bigger

Most investors think they missed the AI boat because they didn't buy Nvidia in 2005.

But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout, a massive technology build-out that Google’s CEO says could be more profound than fire or electricity.

While everyone watches the chip designers, one "backbone" company provides the critical technology that Nvidia and AMD literally cannot function without. We’ve detailed this under-the-radar player in our new AI Playbook.

Continue »

Patrick Sanders has positions in Nvidia. The Motley Fool has positions in and recommends Bloom Energy, Coherent, Corning, GE Vernova, Lumentum, Micron Technology, Nvidia, Oracle, and Vertiv. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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