President Trump Just Greenlit The Next Big Supercycle - 3 Undervalued Stocks to Buy NOW

If you think the AI game is over, listen to none other than President Donald Trump, who called Nvidia CEO Jensen Hang live on stage during his appearance at the All-In Summit. >> Mr. President, >> you're now talking to the planet. >> The data centers are great and they make people wealthy and they make states wealthy and it's the oil of the next 20, 25 years. It's bigger than the internet and the AI, you know, much more so. And uh they're just playing right into the hands of a lot of people that don't want to see it happen. And that could be political people and it could also be China. And we're not going to let that happen. It's a it's a hoax. And >> you're right. We're not going to let that happen, sir. >> No, we're not going to let it happen. >> This wasn't just political rhetoric. It was a direct green light for a multi- trillion dollar industrial buildout. The real bottleneck holding back this quarter century economic engine isn't software algorithms. It's physical infrastructure, power generation, and silicon interconnects. Hyperscalers are pouring over $700 billion into capital expenditures this year alone. But data centers are hitting severe operational walls. Highdensity AI clusters draw up to four times the power of traditional server farms, pushing legacy power grids to their absolute limit and making thermal management the single biggest operational challenge in tech today. At the same time, expanding node clusters to tens of thousands of GPUs creates severe data latency bottlenecks that standard hardware cannot handle. This brings us to three massive under the radar infrastructure plays that perfectly capitalize on this physical buildout. Instead of chasing overhyped mega cap tech, these companies dominate the critical picks and shovels layers, the high efficiency liquid cooling and critical power management systems required to keep mega facilities running. the base load nuclear and clean energy infrastructure securing long-term power purchase agreements for the grid and the advanced high-speed interconnect silicon that keeps data flowing seamlessly across massive server fabrics with recent September market volatility creating temporary pullbacks. These three deeply undervalued picks sit right at the center of the next 25-year economic driver. Let's begin with AsteraLabs Inc. Trading under ticker symbol ALAB sits at the absolute core of this physical bottleneck, providing the semiconductor connectivity required to link massive GPU clusters without performance loss. As AI server clusters grow from thousands to tens of thousands of nodes, standard copper connections create massive bandwidth bottlenecks and power draw. Active electrical cables or AEC and PCIe and CXL connectivity solutions are critical for scaling data center fabrics. While Nvidia dominates the GPU space, high-speed interconnect connectivity plays like Astera Labs trade at lower structural caps relative to their multi-year compound growth rates in the data center buildout race. Astera Labs reported record results for Q2 2026, driven by strong demand for Rackcale AI infrastructure solutions. Revenue doubled year-over-year to $392.4 $4 million, showing 104% year-over-year growth and beating consensus estimates by $32 million. Non-GAAP EPS came in at 80 cents per share, topping Wall Street estimates of 69 cents per share. Gross profits rose 98% year-over-year to $287.6 $6 million, maintaining an industry-leading gross margin of 73.3%. While net income surged 199% year-over-year to $153.1 million. The company's intelligent connectivity platform includes Aries rettimers, Taurus cable modules, LEO memory controllers, and the Scorpio smart fabric switch family paired with the Cosmos software suite. Management guided for Q3 2026 revenue of $540 million to $560 million, representing roughly 40% sequential quarter growth, along with a 400 basis point operating margin expansion to 43%. Scorpio X is guided to become the company's largest product family early, expanding content to over $1,000 per XPU in future platforms. Hyperscaler capex spending is set to grow 75% year-over-year to approximately $700 billion in 2026, benefiting Astera's product pipeline, including UA Link platforms for 2027 and highdensity fiber attached optical solutions. Although ALAB trades at a premium non-GAAP forward PE of 75.4 times fiscal year 1 earnings or 43.4 time forward earnings, that multiple compresses rapidly to 47.6 6 times fiscal year 2 and 37.6 times fiscal year 3 supported by an EPS growth rate of 53%. With EV to sales at 27 times and forward peg at 1.44 44 times. Consensus estimates reflect price targets of $320 based on fiscal year 2027 EPS of $6.39 at a 50 times PE and $44 based on fiscal year 2028 EPS of $88, providing a substantial runway for growth. Next up is Verdive Holdings Co. trading as ticker VRT serves as the primary backbone of the physical AI revolution by delivering critical power management and thermal cooling solutions required for highdensity computing campuses. As next generation GPU clusters push rack densities from historical singledigit kowatts to 300 kow or even 1 megawatt per rack, traditional air cooling gives way to Verdives's co-developed end-to-end liquid cooling systems, 800VT DC power distributions, and grid to chip integration. In Q2 2026, Verdive generated $3.27 billion in revenue, representing 24.1% year-over-year growth with 18% organic growth and an 111% diluted EPS increase year-over-year to $1.52 per share, beating guidance by 12. Adjusted operating profit surged 51% year-over-year to $738 million, expanding adjusted operating margins by $410 basis points year-over-year to 22.6%. Free cash flow generation grew 234% year-over-year to $925 million with cash conversion exceeding 150% exiting the quarter with $5.6 $6 billion in total liquidity and a net cash position with negative0.1 times net leverage. Order backlog hit a record 15.0 billion with a booktoill ratio of 2.9 times while deferred revenue doubled in 6 months from $1.81 billion to $3.63 billion. Verdives product suite expands content value per megawatt toward $3.25 25 million to $3.75 million per megawatt via cool chip coolant distribution units, smartrun modular units, and the $ 1.45 billion acquisition of utility innovation group for micro grid and grid interconnect orchestration. Full year 2026 guidance was raised across all key metrics. Net sales to approximately 14.0 billion, representing 37% year-over-year growth. adjusted operating profit to $3.325 billion with a 23.8% margin, adjusted EPS to $6.65 to $6.75, showing 60% year-over-year growth, and adjusted free cash flow to $2.5 billion, trading at 38.16* 2026 EPS based on a $6.71 consensus. 28.13 time 2027 EPS on $910 consensus 22.15* 2028 EPS on $1156 consensus, and 18.67* 2029 EPS on $13.71 consensus. Verdives valuation is supported by a forward non-GAAP PEG ratio of 1.01 times, which is a 35% discount to peers. Analysts maintain a Wall Street price target of $338 per share, representing roughly 26% upside as the data center market expands from $31 billion in 2026 towards $700 billion by 2034 at an 11% compound annual growth rate. Finally, we have Constellation Energy Corporation, trading as ticker CEG, secures the essential baseline power for the AI expansion by operating the largest nuclear generation fleet in the United States. Demand for roundthe-clock carbon-f free energy from hyperscaler computing campuses is creating severe regional grid constraints, making existing nuclear assets and grid connected capacity economically unreplicable. Rebuilding Constellation's approximately 55 gawatt generating fleet would cost more than three times its current enterprise value, establishing an unrivaled fleet scarcity moat. In Q2 2026, Constellation reported revenue of $7.5 billion, up 23% year-over-year from $6.1 billion and net income of $58 million, reaching $2.1 billion for the first half of 2026, which is double the prior year. Adjusted operating EPS grew to $255 from $1.91 in Q2 2025. Management raised full year 2026 adjusted EPS guidance to between $11.50 and $12.50. Operating cash flow reached $1.55 billion for the first 6 months, backed by $697 million in cash or $1.08 billion including restricted cash against $19.11 billion in long-term debt. The company benefits from nuclear production tax credits under federal law, providing an inflation linked revenue floor of up to $15 per megawatt hour through at least 2032 with $25 million recognized in the first half of 2026. A 3% inflation rate versus the 2% base assumption adds approximately 30 cents per share to the 2030 base EPS outlook. Growth catalysts include the acquisition of Kalpine, securing $920 megawatts of long-term contracted nuclear capacity worth $145 million to $360 million in annual premium revenue and 37 cents to 92 cents in annual EPS contribution as well as restarting the Crane Clean Energy Center at 3M Island by the second half of 2027. Backed by a 20-year power purchase agreement with Microsoft, Constellation targets over 20% base EPS growth from 2026 through 2029 and a sustained 10% plus compound annual growth rate into the 2030s, supported by a $5 billion share buyback authorization, [music] of which $2.2 $2 billion has already been spent, adding 20 cents to over 75 cents per share to 2029 EPS, trading at 22.7 times the 2026 guidance midpoint and 23.5 times forward earnings, modeling total 2029 EPS of $17.25 at a 20 times multiple yields a 2029 price target of $345 per share. The AI buildout is moving from software promises to physical infrastructure reality. Stocks like Asterolabs, Verdive Holdings, and Constellation Energy represent the mandatory backbone powering this quarter century economic engine. Position your portfolio in the underlying infrastructure before Wall Street fully prices in the next wave of capital deployment. Subscribe now and drop your thoughts in the comments below.