3 AI Infrastructure Stocks We Love and 1 We Hate

The AI build-out is still the market’s biggest story, but last week investors started asking who pays for it. On Thursday, 22 October, Nvidia Chief Executive Jensen Huang told CNBC that demand from neoclouds, companies that buy AI chips and rent out the computing power, is “off the charts.” The catch, he said: “there’s a scarcity of capital.”

So we looked for the companies that get paid for the build-out, not the ones borrowing to fund it. We took the chip, chip-equipment, networking, power and cooling stocks we track and pulled their latest four quarters of results from SEC filings. We kept those with revenue growth of 25% or more, an operating margin (operating profit as a share of revenue) of at least 15%, and positive free cash flow, which is cash from operations minus capital spending. Fifteen passed. Prices are Friday’s closes, 23 October.

3 stocks we love

1. Micron Technology (MU)

Revenue growth, fiscal 2026: 256%. Micron makes the memory chips that store data and feed it to AI processors.

1. Revenue reached $133.19 billion in the fiscal year to 3 September 2026, up from $37.38 billion the year before (fiscal 2026 had one extra week). That is the fastest growth of the 15 stocks that passed.
2. The operating margin was 74.6%, up from 26.1%. Most of each extra dollar of revenue became profit, a sign of how tight memory supply is.
3. Free cash flow was $58.96 billion after $30.71 billion of capital spending, against $1.67 billion in fiscal 2025. Micron is paying for its new factories out of its own pocket.

At $877.55, Micron is valued at about $993 billion, or 11.7 times its fiscal 2026 net income of $84.97 billion, the lowest multiple in our screen. The stock is up 207.5% this year but 27.7% below its 25 June closing high of $1,213.56. Memory prices swing, and the low multiple says the market expects a downturn; we think it is bracing too hard.

2. Nvidia (NVDA)

Revenue growth, last 12 months: 83%. Nvidia designs the processors that most AI models are trained and run on.

1. Revenue was $302.97 billion in the 12 months to 26 July 2026, up 83.4% from $165.22 billion a year earlier. Demand has not slowed at this size.
2. The operating margin rose to 65.2% from 58.1%, so the company is earning more on each sale even as it grows.
3. Free cash flow was $127.01 billion. Capital spending was only $7.35 billion because Nvidia doesn’t own chip factories, and it spent $55.32 billion buying back its own shares.

At $210.96, Nvidia is worth $5.08 trillion, or 26.4 times its trailing net income of $192.88 billion. The stock is up 13.1% this year and 11.8% below its 6 October closing high of $239.24. That is a fair price for 83% growth.

3. Vertiv (VRT)

Revenue growth, last 12 months: 26%. Vertiv sells the power and cooling equipment that keeps data centers running.

1. Revenue was $11.48 billion in the 12 months to 30 June 2026, up 26.2%. Every AI server needs power in and heat out, and Vertiv sells both.
2. The operating margin improved to 18.9% from 17.2%. That is thinner than a chipmaker’s, but it is moving the right way.
3. Free cash flow more than doubled, to $2.93 billion from $1.25 billion.

At $194.32, Vertiv is worth $74.8 billion: 43 times trailing net income of $1.73 billion and 26 times free cash flow. That is expensive on earnings, but the shares are 48.4% below their 14 May closing high of $376.23. We think the drop prices in more of a slowdown than the filings show. Vertiv reports third-quarter results on Wednesday, 28 October.

1 stock we hate

CoreWeave (CRWV)

Revenue growth, last 12 months: 115%. CoreWeave is the best-known neocloud: it buys Nvidia chips and rents the computing power to AI companies.

1. Capital spending was $20.57 billion in the 12 months to 30 June 2026, against $6.91 billion of cash from operations. Free cash flow was negative $13.66 billion, deeper than negative $7.94 billion a year earlier. The business grows only as fast as lenders and investors will fund it.
2. Revenue more than doubled to $7.59 billion, yet CoreWeave made an operating loss of $231 million, against an operating profit of $221 million a year earlier. The net loss was $1.93 billion.
3. It had $5.52 billion of cash on 30 June, under five months of burn at the past year’s rate. AP noted on 22 October that the stock “has been particularly shaky in recent weeks because of worries about its debt.”

At $54.23, CoreWeave is worth $29.9 billion, about 3.9 times its trailing revenue. The stock is down 24.3% this year and 61.2% below its 52-week closing high of $139.93. That looks cheap, but there is no profit or free cash flow yet to value it on, and Huang’s “scarcity of capital” lands hardest on companies like this one.

We’ll revisit this list once all four companies have filed their next quarterly results.