Nvidia continues its impressive streak as the world’s most valuable publicly traded company, though its 11% return this year seems underwhelming compared to other AI stocks that have gained attention lately.
A list of growth stocks reveals companies significantly involved in AI infrastructure development—these firms have left Nvidia behind in performance this year, positioning themselves favorably for continued success into 2027.
Remember 2009? A similar signal is appearing again. Back in 2009, Nvidia was flagged by a “double down” signal. Now, a lesser-known company, much smaller than Nvidia, is showing the same “full conviction” alert.
1. Monolithic Power Systems
Monolithic Power Systems (NASDAQ: MPWR) specializes in power management solutions that help data centers keep running without straining AI chips and, yes, keeping servers cold.
The stock has jumped over 40% this year as more AI data centers turn to their products. In the first quarter, revenue climbed by 26.1% compared to the previous year, with net income up even more.
This company has six business segments, but two main ones are pulling the weight. One focuses on enterprise data, which has surged to about a third of total sales—almost double from last year. This segment is primarily about providing power management and integrated solutions for AI chips.
The second important area covers communication infrastructure, including satellite systems and networking gear. This segment saw a whopping 55.5% year-on-year revenue growth, bolstered by trends supporting AI. It makes up 14% of total sales.
With these two segments gaining traction, Monolithic Power Systems’ growth could really speed up, potentially allowing its stock to outpace Nvidia by 2027.
2. Astera Research Institute
Astera Labs (NASDAQ: ALAB) is all about developing connectivity hardware and software designed for AI servers. Several hyperscale data providers are opting for their solutions to achieve faster data transfer between AI chips and server clusters.
The strong earnings growth might catch the eye of investors. In the first quarter, sales nearly doubled from last year, and they’ve continued to grow since, hitting 14% growth. Seeing double-digit growth in this sector isn’t just luck; it’s a trend that previously led to major gains for companies like Micron.
