The earnings season that just ended confirmed that concerns about an AI infrastructure bubble are overstated. If anything, demand for data centers and the equipment that supports them will continue to grow. Still, investors are looking beyond technology stocks like NVIDIA Corp. (NASDAQ: NVDA) over concerns about valuation.
Investors have been willing to pay a premium for AI stocks because of the current and projected future growth in the sector. But just as companies are looking for alternatives to NVIDIA’s top-of-the-line GPUs, investors are hunting for more attractively priced names that make up the AI stack.
