4 Stocks for the Next Triple Digit AI Boom

The next wave of AI stock investing is all about companies building and providing the infrastructure. That's because UBS projects the economic profit generated by AI infrastructure companies will increase to 1.4 trillion by 2027. That is a sevenfold increase from just a few years ago. Today, I'm going to share four of these AI enablers. So stick around because the one I'm saving for last already works directly with OpenAI, Google, and Meta and still has enormous upside potential according to Wall Street's top analysts. And if you want more stock insight videos like this one, then do me a favor and tap that like button so I know to make more of them in the future. Let's dive right in with the first stock, NetApp, with the symbol NTAP. Now, this is a foundational company for this theme because before any of these fancy AI models can do a single thing, all that data has to live somewhere. And that's where NetApp comes in. Before I go deeper, I need to remind you that this is not investing advice. I'm presenting real data and stocks, but I'm not giving you personalized recommendations to buy or sell anything. And by the way, I'm Steve Reiter and my surname is Reiter. I've been investing for over 40 years and I'm currently a partner of wallstreetzen.com. I helped the team build a quant rating system that analyzes thousands of data points to figure out which stocks are the best shot at beating the market. All the stocks today shine in the light of that rating system. Now, back to NetApp. If you know the company at all, then you probably know it's a computer storage company. But here is what makes it exciting right now. Artificial intelligence runs on data. Tell me something you don't know. Mountains of data. They train AI models and run them. All that information has to be stored somewhere. Fast, reliable, and instantly accessible. This is a boon to a company like NetApp. This is was quite apparent in the most recent quarterly announcement where they logged hundreds of new AI and data center wins. Management specifically called AI a clear growth engine for the company. When the world is racing to build AI, the company storing the data underneath it is sitting in a very good position. This no doubt explains the earnings momentum taking place for NetApp as they have been riding a hot streak of five straight earnings beats. This is not a matter of luck. Remember, each time they beat earnings expectations are then pushed higher, and they clear that higher hurdle time and time again. Some of the top minds on Wall Street have clocked this pattern of strong execution leading to strong buy recommendations. Now, these are not randos, right? You're talking about two analysts in the top 5% of their peers for stock picking excellence. Meaning what that when they talk, other investors are wise to listen. And most certainly the Zen ratings quant model is picking up on the operational excellence as well. NetApp earns an elite A rating, which translates to a strong buy recommendation. Its fundamental muscle lands it in the top 5% of our database of our 4,600 stocks. Our system weighs 115 different factors, then breaks the score into seven component grades so you can see exactly where the strength comes from for any stock. Now, for NetApp, value, sentiment, and AI grades all sit around the top 25% of stocks tracked. Even better, momentum lands in the top 8%, and then we have the the crown jewel, top 1% for financial strength. This tells you that it's an extremely well-run company with a quality balance sheet. Here's the thing to remember about NetApp. This is the steady pick of the litter, not the moonshot stock, right? The company is growing at a healthy clip, but not a breakneck one like it was some kind of startup. Plus, shares have already enjoyed a nice run higher. The reason it should continue its ascent is the strong fundamental profile that should lead to more earnings beats and more share price appreciation. So, this is the steady AI winner for your portfolio that allows you to sleep at night versus some of the more crazy volatility picks, right? This is a firm foundation to start our video today. Holding AI data is one thing. Building the actual brains of AI is yet another thing entirely, and that takes us to our next stock. But first, a quick heads-up. If you want to discover more attractive stocks like this, then the best thing you can do right now is sign up for my next live training session this coming Monday. The focus is on timely market insights and my top picks. Now, it's totally free, but you do need to sign up. Do that right now to join me this This Monday at 7:00 p.m. Eastern time, just go to wallstreetszen.com/live. Our second stock today is Kulicke and Soffa, the symbol of KLIC. The company does something critical that almost nobody outside the industry even thinks about. Advanced AI chips are not a single piece of silicon. They're a bunch of pieces that have to be bonded and packaged together with almost unimaginable precision. Kulicke makes the machines that do that bonding. As the tech giants race to build more powerful AI and data center chips, the demand for this kind of advanced packaging is climbing fast. Now, the company is pouring money into expanding their capacity, and it's even working its way into the high-bandwidth memory market that sits alongside the most advanced AI processors. That could turn into a very big market as it opens up. This isn't an undiscovered gem by any means. Investors have been piling into shares with it up about 150% in the past year. Collaboratively, there are ample signs for that upward ascent to continue. For instance, both revenue and earnings are forecast to grow much, much faster than its industry, but it's the latter earnings expectations that are the real trump card here. The Zen ring supports this upside story. Kulicke earns an overall A rating that's reserved for the top 5% of all stocks given the full 115 factor review. In this case, Kulicke and Soffa scores in the top 1% of all stocks. So, this is truly a stellar fundamental setup. Once again, the company creates sparkle for the stock starting with the top 18% showing for financial strength. Then we have a top 16% for sentiment, and then it really starts to take off. Growth in the top 3%, and momentum all the way up in the top 1%. When growth and momentum are running that high, it suggests a business that is enjoying earnings momentum and investors piling in for the ride. That is often a party that continues for quite a while. Some considerations worth naming. This is not a cheap stock, and the chip equipment world can be cyclical. When demand finally cools off, then this stock will get rocked pretty hard. You can see that in the middle of pack C grades for both value and sentiment. That is not bad, but it's not necessarily that great either. But as a behind-the-scenes way to play the explosion complex AI chips, CoolIT is a compelling name that is already working right now. As long as the earnings momentum continues, and there is good reason to believe it will, then shares should continue to keep outperforming. Quick ask before we move on to the back half of the list, where the two strongest picks are waiting. If you are getting value out of this video, then hit the subscribe button and notification bell. I publish data-driven stock analysis like this every single week, and I would hate for you to miss A the next one. Now, our first two stocks build the AI brain and storage data, but none of it runs without one key thing, power. That brings us to Invent Electric with a symbol NVLT. This one sits right in the middle of a problem the entire AI industry is scrambling to solve. Now, here's the problem. These new AI data centers are unbelievably power hungry, and they run unbelievably hot. The more powerful the chips get, the more electricity they draw, and the more heat they throw off. If you cannot power it, and you cannot cool it, then you can't run it. Invent makes the electrical connection, the power management, and crucially, the liquid cooling systems that keep these massive AI facilities from melting down. The demand is showing up in the numbers in a big way, right? In the most recent quarter, Invent delivered record sales of 53% from a year ago. That top line surged forward straight through the bottom line with adjusted earnings up 63%. The growth is being driven by exactly what you'd hope, broad-based data center demand led by liquid cooling. Now, on top of that, orders are pouring in, and the company is sitting on a record backlog of future business. That is a mountain of demand already locked in for the future. Wall Street pros are firmly on board the stock. The consensus recommendation is a strong buy. And we have a cluster of top-rated analysts projecting serious upside. This list includes the likes of Julian Mitchell of Barclays, a top 2% analyst ranked on his actual stock picking track record. Analyst recommendations aren't everything, but when you see several high-rated professionals with strong track records lining up like this, it's a signal worth looking at. That is certainly the case for Invent. Now, our quant model confirms the Wall Street excitement. Once again, we have an overall A-rated stock. In this case, Invent comes in the top 3% of all stocks based upon its exceptional fundamental profile. As we take a look at the component grades, we see sentiment and financials both in the top 15% of all stocks. Growth is a notch higher in the top 10% and momentum is leading the way in the top 7%. That combination is compelling, right? We're talking about consistent growth, healthy operational metrics, and the smart money on board with price action positive as well. Now, one thing to watch is the stock has already made a big move higher. Value comes in and an average C rating, reflecting that it's not exceptionally cheap after a run like this. So, it will continue to outperform as long as the growth continues to unfold, and there's good reason to believe that will be the case. But, with the grid straining under AI and Invent making the gear that powers and cools the whole thing, this is a direct play on the one of the most urgent areas in the entire AI boom. So, that points to strong odds Invent should continue to outperform from here. Before we get to that final pick, one quick thing. If you want to stay one step ahead of the market, then join me live every Monday at 7:00 p.m. Eastern. That's when I share my updated market outlook and trading plan to outperform. This is also when I share my trade of the week based upon our proven Z ratings quant model and my greater than 40 years of investing experience. Now, it's a free event, but you do need to register. Just go to wallstreetzen.com/live or click the link in the description below or scan the QR code on your screen. Just pause the video for a moment to sign up, and then I look forward to see you on Monday. Okay, we have covered the data, the chips, and the power. Now, for the AI name I've been saving, the one at the very center of it all. We're talking about a company that's working with OpenAI, Google, and Meta. When they decided they wanted their own custom AI chips instead of relying on off-the-shelf parts, they all went to the same company to design them. That company is Broadcom with a symbol of AVGO. Broadcom is our final stock and it may be the purest way to own the AI boom that most people are currently overlooking. Everybody knows the companies selling the general purpose chips. Broadcom is the one designing the custom silicon for the biggest names in AI plus the networking gear that ties those giant AI clusters together. When a hyperscaler wants a chip built just for its own AI, Broadcom is the partner of choice. You don't need me to tell you how truly extraordinary a business proposition that truly is. And the good news keeps coming on that front. There are fresh reports that Broadcom and Apple are expanding their partnership all the way out to 2031 to develop custom chips together on top of a new AI chip it has been developing for OpenAI. The first thing I want you to look at here is the earnings and revenue growth forecast. In both case, Broadcom significantly ahead of the industry. And this the pick with the most bullish Wall Street analyst support of the four we discussed today. Now, as the week I'm recording, Wall Street tracks 22 different analysts covering the stock. And of those folks, 15 give it a strong buy, four give it a buy, three holds, and not a single sell in the bunch. Even better is the fair value price targets being put forth. So, for as much as these shares have already gained in the past few years, average analyst sees about 30% more upside in the year ahead. Even better is the street high price target is calling for 50% gains over the coming 12 months. I want to turn your attention to who's giving out those recommendations. In the past month alone, seven analysts ranking in the top 1% of the 5200 analysts tracked have given Broadcom a strong buy recommendation. Once again, analysts are only a piece of the puzzle, but it's a pretty compelling piece when it's that concentrated from that many top folks and that overwhelmingly bullish. The other piece of the puzzle is how well Broadcom scores in their Zen Ratings Quant Model. Indeed, it is A-rated. All in all, it's a better fundamental profile than 96% of stocks we track. Now, for the rest of the good news, we take a look at the component grades. Growth is in the top 17% of stocks. That greatly increases the odds of more earnings beats ahead. Then its AI Factor Grade is in the top 14% of all stocks. Note that our AI Grade is not a measure of how much AI business a company does. It is a factor that studies price patterns to flag stocks more likely to outperform. So, a strong AI mark is one more vital signal in Broadcom's favor. The best component grade comes in for Financials strength, which is an elite top 3% of all stocks, proving they are very well-run cash machine. Now, you put that all together and it's about as strong as it get. The fundamentals and the price signals are all pointing up. Now, the flip side, where Broadcom gets dinged is safety, which comes in as a lowly D in the bottom 20% of all stocks. Let's be fair about that red mark. In reality, the the entire semiconductor space is incredibly volatile, and that is where the low safety grade comes in. That's the kind of price of admission on a stock at the center of the hottest AI theme in the market right now. But, you have a company designing the custom brains of AI for the biggest players alive, growing earnings at a blistering pace with a fortress balance sheet and top-tier analysts pounding the table for more upside ahead. This all tips the scales for for likely future share price gains, a fitting place to end our list today. So, there you have it. Four different corners of the AI landscape, each growing fast and each showing signs of more upside ahead. Now, I want to hear from you. Which of these four is your favorite? And is there another next-wave AI stock I didn't mention that you think belongs in this list? Share it with our community in the comments section below. And if you're interested in even more stocks from a high-tech theme, then check out the video that's popping your screen right now. In that one, I break down four robotic stock tickers that I'm keeping an eye on right now.