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AI Stocks Surge Past Nvidia's Returns
19 Jul
Summary
- Monolithic Power Systems boosts data centers with advanced cooling.
- Astera Labs innovates connectivity for faster AI server data.
- Both companies significantly outpace Nvidia's year-to-date gains.
Several AI stocks are experiencing remarkable growth, significantly outperforming Nvidia's year-to-date returns. These companies are deeply involved in the AI infrastructure build-out and show potential for continued gains.
Monolithic Power Systems (MPWR) has seen its stock rally over 40% year to date. Its power management systems are crucial for AI data centers, ensuring continuous uptime and preventing AI chip overload. The company's enterprise data segment, focused on AI chip power solutions, nearly doubled its sales year over year. The communications segment also saw substantial growth, up 55.5% year over year, driven by AI tailwinds.
Astera Labs (ALAB) is another standout performer, providing essential rack-scale connectivity hardware and software for AI servers. Hyperscalers are increasingly relying on Astera Labs for solutions that accelerate data transfer between AI chips and server clusters. The company reported nearly doubled revenue in its first quarter and demonstrated strong momentum with 14% sequential growth.
