The Nvidia CEO scandal has thrown a spotlight on just how dependent artificial intelligence projects are on the physical plumbing behind the scenes, from data center switches to the servers that power large models. When a single supplier shock can ripple through indexes and retirement accounts, the companies that build and connect that hardware suddenly matter a lot more. This article walks through three stocks from the AI networking and server world that are positioned to serve that structural demand.
The stocks covered below are just a small sample of the AI networking and servers universe, and the full screen surfaced 23 more hardware makers and contract manufacturers with equally compelling narratives that are not included in this article. To identify and analyze the broader opportunity set across switches, optics and server builders, head straight into the AI - Networking and Servers screener
Coherent (COHR)
Overview: Coherent is a photonics manufacturer that supplies optical transceivers, co-packaged optics and related components for hyperscale AI datacenters, alongside a sizeable industrial lasers and materials business.
Operations: Coherent generates about US$6.2b from Datacenter & Communications and US$1.9b from Industrial, with most revenue coming from North America.
Market Cap: US$42.3b
Coherent matters for this AI networking theme because it sells the lasers and optical gear that carry data between powerful chips, and the analyst consensus Narrative on Simply Wall St frames that photonics footprint as a key reason the business is so closely watched by investors focused on datacenters.
"The ongoing expansion of AI datacenter infrastructure and high-performance computing is propelling structural growth in demand for advanced optical transceivers (800G, 1.6T, and beyond), optical circuit switches, and related photonics components, which is fueling robust sequential order growth and sustained revenue momentum in Coherent's datacom and communications business."
What ultimately happens to Coherent’s margins and cash generation hinges on how one unseen pressure inside that AI optics supply chain resolves.
That pressure point is exactly what the full narrative for Coherent unpacks, including how Coherent could respond if AI optics demand accelerates faster than supply chains adjust.
Dell Technologies (DELL)
Overview: Dell Technologies builds AI ready servers, storage, networking gear and PCs for businesses and consumers, supported by financing and services worldwide.
Operations: Dell Technologies generates about US$94.5b from Infrastructure Solutions Group, US$55.6b from Client Solutions Group and US$1.1b from Corporate and other activities.
Market Cap: US$212.6b
Dell Technologies matters for this AI networking and servers theme because its Infrastructure Solutions Group supplies the PowerEdge AI server lines and data center networking that many enterprises now use as their basic building blocks for training and running large models. The analyst consensus Narrative on Simply Wall St argues that this demand is reshaping the long term mix of the wider business.
"Dell Technologies is experiencing accelerating demand for AI servers and data center solutions as enterprises globally increase investments in AI and machine learning workloads and digital transformation, supported by more than US$130b of AI server orders in the past 12 months, a US$95b AI backlog and a pipeline that is multiples of backlog, which ties directly to future revenue and earnings."
What Dell’s shareholders feel from that huge AI pipeline will depend heavily on how one quiet shift in the product mix plays out.
That quiet shift is exactly what the full narrative for Dell Technologies unpacks, showing how Dell Technologies' AI backlog could reshape earnings power and risk for long term holders.
Super Micro Computer (SMCI)
Overview: Super Micro Computer designs and builds high performance AI and HPC servers and rack scale systems for data centers and cloud providers worldwide.
Operations: Super Micro Computer generates about US$54.0b from high performance server solutions, with US$41.8b from the United States and the rest spread across Asia, Europe and other regions.
Market Cap: US$18.3b
Super Micro Computer matters for the AI networking and servers theme because its modular AI racks and blade systems give hyperscalers a way to build dense, power hungry compute clusters quickly. The analyst consensus Narrative on Simply Wall St presents that “build once, scale everywhere” approach as central to how investors view its role in the AI infrastructure build out.
"The accelerating global adoption of AI and analytics continues to drive demand for high-performance, scalable server and data center solutions. This positions Super Micro Computer for multi year revenue growth as enterprises and nations build out AI infrastructure, which can support higher long term revenue and earnings."
What those future earnings translate into for shareholders will hinge on how one unresolved question around the profitability of large AI rack deployments plays out.
That open question on profitability is exactly what the full narrative for Super Micro Computer tackles head on, revealing how Super Micro Computer’s AI racks could convert accelerating demand into durable cash generation.
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