The Nervous System for AI Servers
55sExplains a key AI infrastructure play with 115% revenue growth, making it a compelling investment story.
▶ Play Clip"Lists five AI stocks with solid fundamentals, but the 'buy NOW' urgency is overstated; it's more an educational overview."
The video presents five AI-related stocks that investors should consider, highlighting companies involved in semiconductor connectivity, chip testing, robotic process automation, cloud infrastructure, and social media AI investments.
The AI revolution is impacting nearly every business, presenting a huge opportunity for investors to get in on benefiting companies.
Astera Labs designs high-speed connectivity chips that act as the nervous system for AI servers, enabling fast data movement between components.
Astera Labs reported Q4 2025 revenue of over $270M (up 17% QoQ) and full year 2025 revenue of over $850M (up 115% YoY).
Teradyne makes automated test equipment for semiconductor chips and also owns robotics companies producing cobots for factories.
Teradyne reported Q4 revenue of just under $1.1B (up 43.9% YoY) and EPS of $1.80, beating estimates, with AI-related demand over 60% of revenue.
UiPath provides RPA software that automates repetitive office tasks, combining automation with AI for complex workflows.
UiPath reported Q3 2025 revenue of $411M (up 16% YoY) and annual recurring revenue of ~$1.8B (up 11% YoY).
Oracle shifted from database software to cloud computing, building data centers with AI chips for training models and running applications.
Oracle's total revenue was $16.1B (up 14% YoY), with cloud revenue up 34% and cloud infrastructure revenue up 68%.
Meta uses AI for recommendations, content moderation, and ad targeting, while spending billions on AI infrastructure and the metaverse.
Meta reported Q4 revenue of ~$60B (up 24% YoY) but costs of ~$35B (up 40% YoY), highlighting heavy AI spending.
While AI presents significant investment opportunities, thorough research and due diligence are essential before making any investment decisions.
What is Astera Labs' specialty?
High-speed connectivity chips for AI data centers.
00:43
What was Astera Labs' full year 2025 revenue?
Over $850 million, up 115% year-over-year.
02:06
What does Teradyne manufacture?
Automated test equipment for semiconductor chips and robotics.
05:02
What was Teradyne's Q4 revenue?
Just under $1.1 billion, up 43.9% year-over-year.
07:04
What is UiPath's core technology?
Robotic Process Automation (RPA) for automating office tasks.
07:49
What is Oracle's legacy business?
Database software.
09:46
What is Meta Platforms' primary revenue source?
Targeted advertising on social media platforms.
12:06
What is Bill Ackman's portfolio percentage in Meta?
10% of his entire portfolio.
11:51
What was Oracle's cloud infrastructure revenue growth?
68% year-over-year.
11:38
What was Meta's Q4 revenue?
Just under $60 billion, up 24% year-over-year.
13:11
Astera Labs: Nervous System for AI Servers
Explains the crucial role of connectivity in AI data centers.
00:43Teradyne: Quality Control for Semiconductors
Describes the importance of testing in chip manufacturing.
05:02UiPath: Automating Repetitive Office Tasks
RPA can replace human labor in administrative tasks, offering cost savings.
07:49Oracle: Cloud Infrastructure AI Growth
Cloud infra revenue up 68%, indicating strong demand for AI computing power.
09:33Meta: Spending Heavily on AI Infrastructure
Despite high expenses, Meta's reliable cash flow supports long-term AI investment.
11:51[00:01] biggest companies in the world are racing to dominate the space. But even on a smaller scale, nearly every business that exists today is going to be impacted by this AI revolution. For investors, this could present a huge
[00:16] opportunity if you're able to get in on the companies that will benefit the most from this shift. In this video, I'll be covering five AI stocks that you don't mention here that I'm not a financial advisor and this isn't personalized
[00:30] financial advice. These are just ideas for you to do further research on yourself, but with that said, guys, let's dive in. The first stock on our list is Astera Labs, which was identified by Yahoo Finance as an AI
[00:43] stock with explosive growth potential. Astera Labs is a semiconductor company that builds high-speed connectivity chips used inside of AI data centers. When companies are training AI models, they don't just use one single computer.
[00:57] Instead, it's a massive network of CPU GPUs, and memory systems all working together within these data centers. Now, this creates a problem because all of able to communicate very quickly with each other, [music] and that's where
[01:12] Astera Labs comes into the equation. The company designs specialized chips and hardware that connect all of these different components inside AI servers, allowing for data to move between them faster and more reliably. You can think
[01:25] of them like the nervous system for AI servers, making sure information flows between all of the different components. These connectivity chips are being used in AI training clusters, cloud data centers, and other high-performance
[01:38] computing systems. AI systems are getting bigger and more complex, and that makes moving data between them more important, but also more challenging. Astera Labs is specifically focused on these data bottlenecks, which is exactly
[01:52] why their technology is becoming increasingly important as AI infrastructure grows. In addition, they recently reported fourth quarter and full year 2025 results that were quite impressive. Astera Labs reported record
[02:06] quarterly revenue of over 270 million, up 17% from the previous quarter. And for the full year 2025 results, revenue came in at a record of over 850 million, which was a 115% increase year-over-year. Now, before we
[02:22] I want to quickly show you a tool that I personally use to analyze companies like the ones in this video, and they're also sponsoring this video. We all know investing.com, but today I want to tell you more about their flagship product
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[03:15] currently overvalued with a fair value of about $96, which could mean downside of roughly 20%. So, this might be a stock that you want to wait and buy on the dip instead of chasing it at current prices. If you click on the company name
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[05:02] list was actually identified in the ProPicks AI tool of Investing Pro as one of their top 15 tech stocks for the month of March. Teradyne is a technology company that makes machines used to test computer chips and electronics before
[05:16] they are sold. And understanding why this is so important starts with understanding just how complex modern electronics are. Modern smartphones, for example, often include 30 to 100 or more semiconductor chips, and AI servers
[05:31] often contain thousands of them. Now, think about this. What would happen if even one single chip was defective? It could result in the entire device failing. So, before those chips leave the factory, manufacturers need to test
[05:44] every single one to make sure they're working properly, and that's where Teradyne comes in. Teradyne builds specialized machines called automated test equipment that are used by major semiconductor companies like Intel,
[05:56] Qualcomm, and Samsung to test out their chips. These machines run thousands of tests to verify factors like speed, power usage, and reliability before they are sent out. You can think of Teradyne's technology as the quality
[06:10] control system for the semiconductor industry. And since these AI GPUs and advanced processors can cost thousands of dollars apiece, having extremely precise testing equipment is a very important step in the process. Now, in
[06:24] addition to testing equipment, Teradyne has a second component to their business, which is robotics. Teradyne owns several companies that build robots used in factories and warehouses, including collaborative robots called
[06:37] cobots. These cobots work alongside humans on tasks like assembling parts, packaging products, or just moving things around the factory floor. So, not only are they an integral part of the computer chip supply chain, they also
[06:50] have exposure to automation through this industrial robotics segment. Teradyne recently reported a Q4 earnings beat primarily driven by high demand for their semiconductor testing equipment. Revenue came in at just under 1.1
[07:04] billion, up 43.9% year-over-year, beating consensus estimates, and earnings per share came in at $1.80 versus analyst estimates of In addition, they mentioned that AI-related demand accounted for over 60%
[07:20] of total revenue in the quarter with expectations for it to reach over 70% in Q1 of 2026. The next stock on our list here is a repeat mention from one of my previous videos about AI stocks. And real quick,
[07:34] this video so far, make sure you drop a like and subscribe. This is a very different company from others on the list as UiPath is a software company that builds digital workers that can automate repetitive office tasks. For
[07:49] mundane tasks that are associated with administrative work. This includes things like copying data from one program to another, generating expense reports or invoices, updating spreadsheets, and more. UiPath can
[08:04] basically watch how a human performs this work and then automates it, allowing the digital bot to perform the work instead. This type of technology is called RPA or robotic process automation, and it could potentially
[08:16] change how countless businesses are run forever. Now, the upside to RPA is rather obvious. You don't have to pay a digital bot an hourly wage like you do with a human employee. But in addition, this can also result savings as well as
[08:32] reducing the potential for human error. And here's where the AI component comes in. Originally, UiPath was focused on automating simple tasks like data entry. Today, the platform combines automation with AI, allowing for these bots to
[08:47] understand documents, analyze data, and automate more complex workflows. In a nutshell, UiPath is trying to build systems where humans, AI, and software bots all run business processes automatically. Based on their most
[09:02] recent earnings report, revenue was up 16% year-over-year, coming in at 411 million for Q3 of 2025. And since they are a software company, annual recurring revenue is a very important metric, too. This came in at just under 1.8 billion,
[09:18] or an increase of 11% year-over-year. So, this company is seeing low impressive, but they're not seeing the same hypergrowth as some of these other AI stocks on the list. Next up on our list here is another stock that was
[09:33] mentioned in the ProPicks AI tool from Investing Pro. Oracle is a mega-cap stock that has recently dropped by more than a third over the last 6 months, and this could be a significant buying opportunity. At its core, Oracle is
[09:46] known for building database software, or the systems that companies use to organize and access their data. Now, this data needs to be both readily accessible and stored securely, making this a very important task. For example,
[10:00] this could be customer records, employee information, financial transactions, and things like that that you don't want exposed to the general public. But, that's more or less what Oracle was known for, and since then they have made
[10:13] a big shift into the segment of cloud computing. Through this, companies are able to run software and store their data on Oracle's remote servers instead of maintaining their own infrastructure. This means companies can store massive
[10:27] amounts of data, run applications, and power large computing workloads all through Oracle's data centers. Now, circling back to artificial intelligence, these AI models require huge amounts of computing power and data
[10:41] infrastructure to train and operate. Well, Oracle has been building large cloud data centers equipped with high-performance AI chips specifically designed for these complex workloads. This allows companies to train AI
[10:55] models, process data, and run AI applications through Oracle's cloud infrastructure instead of using their own infrastructure. And as I'm sure you can imagine, this is extremely valuable for the countless companies looking to
[11:08] build AI models or implement AI into their business. And as an added benefit, their legacy business of data storage is still highly viable, giving you a mix here of stability and growth potential.
[11:21] [music] In their most recent earnings report, Oracle reported revenue of 16.1 billion, up 14% year over year in US dollars. But, more impressively, cloud revenue was up 34% and cloud infrastructure revenue was up 68% in US
[11:38] dollars. So, this new segment of their business is generating significant amounts of growth for Oracle. Now, the final stock on our list here is one that billionaire Bill Ackman is buying to ride the AI wave, and it actually
[11:51] accounts for 10% of his entire portfolio. Meta Platforms might not be artificial intelligence, but they should not be overlooked. Everyone knows the legacy business for Meta Platforms, which is social media platforms like
[12:06] Facebook, Instagram, WhatsApp, and Messenger. And the majority of their revenue comes from monetizing the attention that people spend here by running targeted ads. This makes Meta one of the most powerful digital
[12:18] marketing platforms in the world, but they're also investing heavily into the new frontier of artificial intelligence. For starters, AI is actually important for multiple aspects of their core business. For example, it can help their
[12:31] algorithms to make better recommendations, but it can also be used to moderate harmful content, improve ad targeting, and even power chatbots and AI assistants. [music] And outside of their social media platforms, Meta is
[12:44] also building its own large AI models and developing open-source AI technology. This will allow developers around the world to build AI applications, which is a big part of why Meta is spending billions of dollars on
[12:57] all of this infrastructure and data centers. Simply put, Meta Platforms wants to be an integral component to the next generation of applications built to leverage artificial intelligence technologies. In addition, they're also
[13:11] investing heavily into virtual reality and augmented reality with the long-term vision being referred to as the metaverse. While this part of their business is still developing, Meta believes that immersive computing could
[13:24] be the next major platform after smartphones. In their most recent earnings report, Meta reported Q4 revenue of just under 60 billion, which was 24% higher year over year. But, Meta is spending a lot of money on AI
[13:38] infrastructure, indicated by the roughly 35 billion in total costs and expenses for quarter four. This was a year-over-year increase of 40%, leading to some concerns about overspending on AI. However, Meta Platforms is a cash
[13:54] cow with a very reliable and predictable business model, so they are one company that can probably afford to spend like this. So guys, artificial intelligence is still in the early stages, but it's already reshaping industries across the
[14:07] entire global economy. And while there's no guarantee that any one stock will be a winner, the companies building the infrastructure, software, and platforms could be a strong bet. But, of course, keep in mind you're always going to want
[14:20] to do your own research and due diligence on any stocks you hear about. But, I'd love to hear from you. What AI stocks are you buying or watching right now? Leave me a comment down below, and don't forget to subscribe while you're
[14:33] tuning in, guys, and I'll see you next time.
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