The artificial intelligence sector continues to drive significant developments across hardware, software, and infrastructure, attracting both strong investment and skepticism. Companies like Vertiv are crucial for supporting the physical demands of AI, offering specialized power and cooling solutions for data centers. S&P Global Market Intelligence projects data center power consumption will nearly double by 2030, a trend Vertiv is capitalizing on with its third-quarter revenue growing 29% to $2.7 billion and a future business backlog reaching $9.5 billion. In the chip market, AMD is seeing robust demand, particularly from China, for its MI308 AI GPUs, with Alibaba reportedly considering a $675 million order. This helps AMD compete with Nvidia's A100 chips. AMD also forecasts substantial growth, predicting its earnings per share will rise from under $4 in 2025 to over $24 by 2030, partly due to potential OpenAI deals. Meanwhile, ASML remains a critical player, being the sole manufacturer of extreme ultraviolet (EUV) lithography machines essential for advanced chip production. Supporting AI infrastructure, Astera Labs, an Nvidia partner, reported record third-quarter revenue of $230.6 million, a 104% increase, while Navitas Semiconductor, also an Nvidia partner, expects a sales rebound in 2026 after a Q3 2025 revenue drop. Beyond hardware, major tech firms are deeply integrating AI into their services. Microsoft is advancing with Copilot and Azure AI, while Alphabet (Google) leverages its vast data from Google Search, YouTube, and Android, alongside its DeepMind lab and Google Cloud platform, which saw $102.3 billion in revenue in the third quarter. Salesforce is enhancing its customer relationship management software with Einstein AI. On the investment front, TipRanks' AI Analyst recently identified three ETFs as top investment choices, including the GMO U.S. Quality ETF. However, not everyone is bullish on the AI market. Noted investor Michael Burry has placed a $10 million bet against AI stocks, predicting a crash by 2027 and comparing the current market to the dot-com bubble. He suggests Nvidia's stock could drop 37% to $110, drawing parallels to Enron. Conversely, Alphabet is highlighted as a safer long-term AI investment due to its extensive data, proprietary AI chips, and strong financial position with nearly $99 billion in cash.
Key Takeaways
- Vertiv's third-quarter revenue grew 29% to $2.7 billion, with a $9.5 billion backlog, addressing the increasing power and cooling demands of AI data centers.
- S&P Global Market Intelligence projects data center power use to nearly double by 2030.
- AMD anticipates significant AI GPU sales to China, with Alibaba reportedly planning a $675 million order for MI308 chips.
- AMD forecasts its earnings per share to grow from under $4 in 2025 to over $24 by 2030, supported by China demand and potential OpenAI deals.
- ASML is the sole manufacturer of extreme ultraviolet (EUV) lithography machines, crucial for producing advanced chips used by companies like TSMC and Samsung.
- Astera Labs, an Nvidia partner, reported record Q3 revenue of $230.6 million, a 104% increase, specializing in AI server connectivity.
- Microsoft leverages AI with products like Copilot and Azure AI services, while Alphabet (Google) integrates AI across Google Cloud, DeepMind, and Waymo, generating $102.3 billion in Q3 revenue.
- Salesforce enhances its customer relationship management software through its Einstein AI integration.
- Michael Burry has bet $10 million against AI stocks, predicting a market crash by 2027 and suggesting Nvidia's stock could fall 37% to $110.
- TipRanks' AI Analyst recommended three ETFs as top investment choices: Dimensional U.S. Equity ETF, Invesco Russell 1000 Dynamic Multifactor ETF, and GMO U.S. Quality ETF.
Vertiv Aims to Power and Cool AI Data Centers
AI data centers face big challenges with power and cooling needs. Vertiv offers special solutions like flexible power and chilled water cooling systems to help. S&P Global Market Intelligence expects data center power use to almost double by 2030. Vertiv's third-quarter revenue grew 29% to $2.7 billion, and its future business backlog reached $9.5 billion. This positions Vertiv as a key player in the growing AI infrastructure market.
Vertiv Stock Gains as AI Data Center Needs Grow
AI data centers are using more electricity and need better cooling. Vertiv provides flexible power and efficient cooling solutions, including chilled water systems. The company's market cap is $64 billion, with a current price of $165.95 as of December 29, 2025. Vertiv's third-quarter revenue was nearly $2.7 billion, up 29% year over year, showing strong growth in the AI infrastructure market.
AI Analyst Picks Top 3 ETFs for Investment
On December 29, 2025, TipRanks' AI Analyst named three Exchange Traded Funds as top investment choices. These "Outperform" ETFs show strong potential for growth. The recommended funds are the Dimensional U.S. Equity ETF, the Invesco Russell 1000 Dynamic Multifactor ETF, and the GMO U.S. Quality ETF. The GMO fund specifically invests in high-quality American businesses, especially in technology and healthcare.
AMD Sees Strong AI Chip Demand from China
Advanced Micro Devices AMD expects a big increase in AI GPU sales to China. Alibaba is reportedly planning a $675 million order for AMD's MI308 chips, which are made for the Chinese market. These chips are helping AMD regain market share against local competitors and Nvidia's A100. At its 2025 Financial Analyst Day on May 2, 2024, AMD predicted its earnings per share would grow from under $4 in 2025 to over $24 by 2030. This growth is supported by potential OpenAI deals and strong demand in China.
Three AI Stocks to Watch Beyond Chipmakers
As AI technology grows, investors are looking beyond chipmakers for new opportunities. Three companies are expected to do well in 2026 by using AI in their software and services. Microsoft is leveraging AI with products like Copilot and its Azure AI services. Alphabet uses AI in Google Cloud, DeepMind, and Waymo. Salesforce integrates AI with Einstein AI to improve its customer relationship management software. These companies show how AI applications can create new value and drive widespread adoption.
Michael Burry Bets $10 Million Against AI Stocks
Michael Burry, known from "The Big Short," has bet $10 million that AI stocks will crash by 2027. He believes the AI market is "detached from reality," similar to the dot-com bubble. Burry's bet pays off if Nvidia drops 37% to $110 and Palantir falls to $50. He also compared Nvidia to Enron, suggesting the company exaggerates chip life expectancy and inflates earnings. This prediction was revealed in his recent 13F filing.
Alphabet Offers Safer Long-Term AI Investment
Alphabet is presented as a safer long-term investment in the AI sector compared to risky penny stocks. The company has a major advantage due to its vast amount of data from Google Search, YouTube, Maps, Android, and Gmail. Alphabet also has its own AI research lab, DeepMind, and designs its own advanced AI chips. Its Google Cloud platform is the third largest globally. In the third quarter, Alphabet generated $102.3 billion in revenue, a 16% increase year over year, and holds nearly $99 billion in cash.
ASML A Key AI Stock to Buy and Hold
ASML is seen as a crucial stock for AI investment due to its unique role in the semiconductor industry. The company is the only one that builds extreme ultraviolet EUV lithography machines. These machines are essential for making the most advanced chips used by companies like TSMC, Samsung, and Intel. ASML has a strong financial record, generating significant cash flow in 2023 and 2024. Its strong balance sheet and monopoly in EUV technology make it a compelling long-term investment in the growing AI sector.
Navitas and Astera Labs Compete in AI Infrastructure
Navitas Semiconductor and Astera Labs both provide important parts for AI infrastructure, with global data center capacity expected to triple by 2030. Navitas, a partner with Nvidia, focuses on power conversion chips but saw its Q3 2025 revenue drop 53% to $10.1 million after leaving the mobile and consumer markets in China. Astera Labs, also an Nvidia partner, specializes in AI server connectivity and reported record Q3 revenue of $230.6 million, a 104% increase. While Astera Labs shows strong current growth, Navitas expects its sales to rebound in 2026 as it focuses on high-power AI markets.
Sources
- Could Vertiv Become the Next Essential AI Infrastructure Stock?
- Could Vertiv Become the Next Essential AI Infrastructure Stock?
- 3 Best ETFs to Invest In, According to AI Analyst, 12/29/2025
- AMD: Strong AI Signal From China Restart (NASDAQ:AMD)
- The "second derivative" AI stocks: 3 companies that could thrive beyond chips in 2026
- 'The Big Short' Investor Michael Burry Bet $10 Million That AI Stocks Will Crash By 2027
- Forget High‑Risk AI Penny Stocks: This Established AI Leader Is a Safer Long‑Term Bet
- 1 Artificial Intelligence (AI) Stock I'd Buy on Every Dip and Never Sell
- Better Artificial Intelligence Stock: Navitas Semiconductor vs. Astera Labs
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