Top 5 AI Infrastructure Stocks as Jensen Huang Says ‘Trillions More Needed'

Core Viewpoint - The market requires trillions of dollars for AI infrastructure development, as stated by NVIDIA CEO Jensen Huang, highlighting the urgency of investment in this sector [1][2]. Group 1: NVIDIA - NVIDIA is positioned as the leader in AI infrastructure, capturing 80-85% gross margins and showing significant financial performance with $31.9 billion in net income and $57 billion in revenue for Q3 FY2026 [2][15][16]. - The company is expanding globally, as indicated by Huang's visit to China, which reflects its strategy to navigate geopolitical challenges while capitalizing on the growing demand for AI infrastructure [17]. - The forward PE of 24x suggests that the market anticipates continued growth, making NVIDIA a key player in the AI infrastructure wave [16][18]. Group 2: Meta Platforms - Meta is investing heavily in its own AI infrastructure, spending $18.8 billion per quarter, which has led to a decline in stock performance despite strong earnings [3][4]. - The company reported $2.7 billion in net income for Q3 2025, impacted by a significant tax expense, indicating healthy profitability when adjusted [4]. - The forward PE of 21x reflects a bet on the company's ability to monetize its infrastructure effectively by 2027 [5]. Group 3: Amazon - Amazon's AWS division is crucial for its growth, with a quarterly capex of $35.1 billion, but the stock has underperformed, being flat year-to-date [6][7]. - The company reported $21.2 billion in net income on $180.2 billion in revenue for Q3 2025, with an 11.1% profit margin, emphasizing the importance of AWS in driving profitability [7]. - The forward PE of 30x indicates that investors expect significant growth from AWS, particularly in monetizing AI workloads [7][8]. Group 4: Microsoft - Microsoft is heavily investing in Azure, with $19.4 billion in capex for Q1 FY2026, but the stock has seen a decline despite revenue growth of 18.4% [9][10]. - The company reported $27.7 billion in net income on $77.7 billion in revenue, showcasing a strong operating margin of 48.9% [10]. - The forward PE of 29x suggests that the market is optimistic about Azure's potential to accelerate AI revenue [11]. Group 5: AMD - AMD secured a 10-year, $311 million data center lease with Riot Platforms, validating its MI455X accelerators as credible alternatives to NVIDIA's offerings [12][13]. - The stock has increased by 96% over the past year, with Q3 2025 showing $1.2 billion in net income on $9.2 billion in revenue [13]. - The forward PE of 37x indicates expectations for significant growth, with analysts projecting a target price of $286, representing a 38% upside [13][14].