3 AI Infrastructure Stocks With Strong Growth, Not Hype

Key Points

• Super Micro Computer stock is rising on AI server demand tied to NVIDIA’s new Blackwell chips and trades at just 21x forward earnings.
• Arista powers AI data centers with Ethernet switches used by Meta and Microsoft, offering high-margin AI infrastructure exposure.
• Synopsys enables AI chip design across data center, IoT, and automotive sectors and is trading below its historical P/E ratio.

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.

There’s no shortage of candidates. However, these three companies look particularly attractive. They’re delivering strong revenue and earnings growth that is expected to continue in the coming years. But they’re not priced for perfection, which should be attractive to investors hunting for value in this sector.

Super Micro’s Turnaround Is in Full Swing

Super Micro Computer Inc. NASDAQ: SMCI manufactures the servers that house graphic processing units (GPUs) from companies like NVIDIA. SMCI stock was under pressure earlier this year over accounting irregularities. However, that issue is behind the company, and analysts are now focusing on its growth.

That growth is likely to come in tandem with the recent release of NVIDIA's Blackwell chips. Super Micro Computer servers are directly linked to Blackwell, which means that for the foreseeable future, the fortunes of both companies will be closely linked.

Investors can still own SMCI stock at a forward P/E of about 21, slightly below its historical average and surprisingly low considering revenue is projected to triple in the coming years. 

That kind of growth should drive earnings higher and lift the company’s valuation. For long-term investors, this may be the cheapest SMCI will look for a while.

Arista Should Maintain Its Lead in Ethernet Networking

Speed is the key to an AI stack. Arista Networks Inc. NYSE: ANET provides switches and routers that are part of the networking gear needed to move the massive amounts of data between GPUs in an AI stack. The company’s Spectrum-X Ethernet switches are being used by Meta Platforms Inc. NASDAQ: META and Microsoft Corp. NASDAQ: MSFT, which are the company’s two largest customers.

The backing of these two tech giants shows that Ethernet is becoming the networking solution of choice for data centers. That’s further demonstrated by NVIDIA’s latest launch of an Ethernet switch.

Due to tariff concerns, ANET stock is down approximately 15% in 2025. However, it is up about 7% in the last three months and appears to be in a consolidation pattern. At 40x earnings, the stock is trading at a slight premium to its historical average. Arista Networks is priced attractively compared to other AI stocks, particularly as investors are showing a willingness to pay for the company’s high-margin business.

Synopsys Is Providing the Picks and Shovels Needed for AI Chips

Synopsys Inc. NASDAQ: SNPS provides electronic design automation (EDA) tools and intellectual property (IP) for designing advanced semiconductors that power AI models. Synopsys doesn’t make the chips, but it manufactures some of the necessary components to make those chips.

The company’s services have an audience beyond data centers. In fact, the company is well established in both the Internet of Things (IoT) and automotive sectors. That gives the company several levers to pull even as its revenue increases year-over-year (YOY).

SNPS stock is down 1.65% in 2025 and over 19% in the last 12 months. Much of that decline is due to the trade restrictions with China that the Trump administration imposed on the company.

At 34x earnings, the stock is priced below its historical average and may not reflect the expected 25% compound annual growth rate (CAGR) in the company’s earnings in the next five years.