Buy and Hold 3 AI-Focused Data Center, Cloud Infrastructure Developers

Industry Overview - The artificial intelligence (AI) infrastructure market is experiencing significant growth, driven by the demand for data center capacity to manage and store cloud computing data [1] - The generative AI market is projected to grow from $40 billion in 2022 to $1.3 trillion over the next decade, indicating a substantial opportunity for investors [2] Company Summaries Vertiv Holdings Co. - Vertiv Holdings is a leading provider of critical digital infrastructure and services, focusing on AI-enabled infrastructure solutions [3] - The company reported a 35% sales growth, reflecting strong market demand and expanded capabilities [4] - For 2025, the Zacks Consensus Estimate projects revenues of $9.97 billion, a 24.5% year-over-year increase, and earnings per share of $3.82, a 34% increase [6] - For 2026, revenues are expected to reach $11.55 billion, a 15.8% year-over-year increase, with earnings per share of $4.85, a 26.9% increase [7] Arista Networks Inc. - Arista Networks provides cloud networking solutions optimized for data centers and cloud computing environments [9] - The company is well-positioned with a strong AI-focused strategy, enhancing customer adoption and growth [10] - For 2025, the Zacks Consensus Estimate shows revenues of $8.73 billion, a 24.6% year-over-year increase, and earnings per share of $2.81, a 23.8% increase [15] - For 2026, revenues are projected at $10.28 billion, a 17.8% year-over-year increase, with earnings per share of $3.18, a 12.9% increase [17] Astera Labs Inc. - Astera Labs develops connectivity solutions for cloud computing and AI applications, with a focus on enhancing connectivity in AI environments [18] - The company expects significant growth from its Scorpio product line, which is projected to account for over 10% of total revenues in 2025 [20] - For 2025, the Zacks Consensus Estimate anticipates revenues of $757.66 million, a 91.2% year-over-year increase, and earnings per share of $1.58, an 88.1% increase [25] - For 2026, revenues are expected to reach $984.46 million, a 29.9% year-over-year increase, with earnings per share of $1.97, a 24.1% increase [26]