4 Stocks Riding Nvidia's $105 Billion Bet

AI stocks have been shaky, and everywhere you look, someone's calling this a bubble.

Nvidia isn't acting like it. The company just agreed to guarantee up to $105 billion behind one of the largest AI data centers ever planned. That spending could ripple into 5 stocks, including a few worth buying right now.

A note from our sponsors...

The ONLY AI opportunity you should be looking at

This is the ONLY AI wealth-building opportunity you should be watching right now.

No. It's not about Nvidia, Tesla, or Meta...

It's about one overlooked company profiting off AI "digital goldmines" that are poised to experience 100x growth very soon.

This new opportunity will change the market and make investors a lot of money.

That's why it has received a $500 billion commitment from President Trump himself...

Learn more about this little-known company here >>>

What Happened, and What It Means For You

Let's talk about what just happened and what it means for you as an investor.

Nvidia has agreed to guarantee up to $105 billion in lease obligations for a new AI data center campus in Pike County, Ohio. SB Energy, owned by SoftBank, is developing it, with OpenAI signed on as the tenant for 20 years.

To be clear, Nvidia isn't writing a $105 billion check. Think of it as co-signing the lease. Nvidia only pays if OpenAI defaults and the landlord can't replace it.

That's a contingent risk for Nvidia shareholders. But it also shows how much confidence Nvidia has in this buildout.

The company is also investing $1.5 billion directly into SB Energy.

The first 800 megawatt phase is expected online in 2028, and Nvidia says this single site could generate up to $200 billion in revenue, with total OpenAI related compute revenue potentially reaching $600 billion by 2030.

And this project is enormous. One gigawatt can roughly power 750,000 U.S. homes. This campus is planned for 8 gigawatts.

So this isn't just a chip story anymore. It's a power, construction, data center, and hardware story, creating opportunities far beyond Nvidia.

Several stocks could benefit from this multibillion dollar development. Let’s dig in. 

1. Taiwan Semiconductor (TSM)

Let’s get to the good stuff with Taiwan Semiconductor (TSM).

Nvidia designs the GPUs powering this AI buildout, but Taiwan Semi is the company that actually manufactures them. So if Nvidia is right and demand for AI compute keeps exploding, more GPUs have to get built, and Taiwan Semi sits directly in that flow of spending.

The numbers here make a strong case for owning the stock. 

Trailing twelve month earnings are up more than 40% to nearly $70 billion, on $139 billion in revenue, with margins near 50%. Last year's 40.6% earnings growth also beat its own 5 year average, while shares have surged nearly 80% in a year.

But here's the important difference. Wall Street still sees meaningful room to run. Five of 6 analysts rate Taiwan Semi a Buy or better, and their average price target implies more than 26% upside, while the current street high suggests the stock has over 50% upside potential in the coming year. Compare that with the roughly 4% upside analysts see for Equinix, and the appeal here is clear.

The Zen Ratings agree. Taiwan Semi earns a B rating, equal to a Buy recommendation, with A's in Momentum and Financials and B's in Sentiment and AI. Strong financials underneath the business, strong price action behind the stock, and bullish signals supporting both.

There is one blemish. Over the past five years, earnings have grown 28.81% annually, versus 58.41% for the broader semiconductor industry. So relative to some of its red hot peers, its longer term growth hasn't been exceptional.

But this is a profitable, financially strong company sitting at one of the most critical chokepoints in the entire AI supply chain, with Wall Street still seeing substantial upside. That makes Taiwan Semi a much more compelling setup than the stock just covered.

2. Sterling Infrastructure (STRL)

Moving from the chips to the massive campuses being built around them. Sterling Infrastructure (STRL) handles the site development and infrastructure these AI data centers need, giving it a direct way to profit as the buildout accelerates.

And the growth is already showing up. Trailing twelve month earnings are up more than 51% to $431.5 million, and Sterling has outgrown both its industry and the broader market over the past five years. Analysts expect another 21% annual earnings growth going forward.

Wall Street sees plenty of runway too. All 3 analysts covering Sterling rate it Buy or better, with an average price target implying roughly 35% upside. The max forecast is even better. It comes from Brent Thielman of Oppenheimer, who ranks in the top 2% of analysts tracked in a database of over 5,300. His target suggests the stock could see over 70% upside from current levels as of this writing.

And that's all after the stock's 100%+ run over the past year.

The Zen Ratings agree, and then some. Sterling has actually been upgraded to an A rating, a Strong Buy recommendation, led by an A in Growth and B's in Sentiment and Financials.

The one concern is that revenue is forecast to grow a more modest 11.66% annually, so hitting those bigger earnings targets will require Sterling to keep expanding margins.

But strong growth, bullish analysts, robust upside potential, and now a Strong Buy rating make this a compelling way to play the AI infrastructure boom. And the final two names still rank higher.

The Zen Ratings discussed here are updated daily. If any of the stocks mentioned interest you, visit wallstreetzen.com to see the latest data.

3. Generac (GNRC)

Now on to another Strong Buy: Generac (GNRC).

AI data centers need enormous amounts of reliable power, and Generac provides the backup power infrastructure that keeps them running when the grid can't. That opportunity is already turning into business, with reports pointing to a $1.6 billion data center related backlog.

And the growth could be just getting started. Analysts expect earnings to grow an exceptional 48% annually going forward, while 12 of 14 rate the stock Buy or better. Their average price target implies over 30% upside potential, while the street high target sees over 60% upside potential in the coming year.

The Zen Ratings are just as bullish. Generac earns a Strong Buy, the highest rating in the system, with an A in Growth and B's in Sentiment, Safety, and Financials.

That mix suggests Generac has the kind of well rounded profile you want in a growth stock. Rapid expansion backed by solid financials, relatively dependable performance, and increasingly bullish investor sentiment.

There is one catch. Earnings fell 27% over the past year, and longer term growth has lagged both its industry and the market. But there are signs the turnaround is already underway. Q2 earnings jumped 95% from the previous quarter.

So there's a growing AI data center backlog, a major earnings rebound, 48% projected annual growth, and a Strong Buy rating. This is where the list gets really interesting.

If you like stock talk like this, WallStreetZen's no cost Live training sessions are worth a look. Join our Editor in Chief Steve Reitmeister on Monday at 7pm EST. He doesn't just talk about what he's buying, but how he's finding stocks so you can do the same in the days ahead, plus his Trade of the Week combining the Zen Ratings with his own investing track record. Register for free at wallstreetzen.com/live.

4. Micron (MU)

That brings us to the highest rated stock on the list: Micron (MU).

Micron makes the high bandwidth memory that sits alongside Nvidia's GPUs inside AI servers. Without that memory feeding data to the chips fast enough, all that expensive compute gets bottlenecked. So as Nvidia sells more GPUs into massive AI campuses like this one, Micron sits directly in the path of that demand.

And its numbers are the strongest on this list.

Trailing twelve month earnings are up more than 700% to $50.5 billion, on $90.3 billion in revenue, with margins near 56%. Shares have exploded more than 700% in just the past year.

Normally, a run like that raises worries about being too late.

But signs indicate it may actually still be undervalued. For example, its PEG sits at just 0.52, suggesting the stock still looks reasonably priced relative to its growth. For context, the average PEG is 1.5, and anything below 1 is considered a screaming deal. Micron is well below that level.

Wall Street also still sees substantial upside. 23 of 25 analysts rate Micron Buy or better, with an average target nearly 40% above today's price. The max price target sees over 110% upside potential. And these aren't randos. Several of them rank in the top 1% of all analysts in the database.

The Zen Ratings are just as impressive. Micron earns a Strong Buy, backed by A's in Growth, Momentum, and Financials. That's a powerful combination: the business is growing rapidly, the balance sheet and underlying financial performance are strong, and the stock's price action confirms that investors are rewarding those fundamentals.

The tradeoff is Safety, which earns a D. Micron operates in a historically cyclical industry, and after a 700% run, investors should expect considerably more volatility than they would from a steadier stock.

But that's the profile here: exceptional growth, strong financials, powerful momentum, and a valuation that still looks reasonable relative to that growth. Among these five stocks, Micron earns the highest overall rating, making it the strongest pick for playing the AI buildout beyond Nvidia.

Conclusion

So here's the bigger picture.

AI stocks can pull back. Bubble fears can flare up. But Nvidia just put its balance sheet behind as much as $105 billion in lease obligations for a single AI campus.

Add its $1.5 billion direct investment, a potential $200 billion in Nvidia revenue from this site, and as much as $600 billion in OpenAI related compute revenue by 2030, and Nvidia clearly isn't positioning for an AI slowdown.

That doesn't make every AI stock a buy. But it does tell you the infrastructure buildout is still moving forward, and some of the biggest opportunities may now sit outside Nvidia itself.

Next, watch Q3 earnings from these five companies. That's where we'll start seeing whether this massive buildout is translating from announcements into actual business.

So here's the takeaway. Nvidia is putting up to $105 billion behind this AI buildout, making it pretty clear the company isn't preparing for an AI slowdown. And as that spending spreads into chips, memory, power, construction, and data centers, some of the biggest opportunities could be outside Nvidia itself. 

What to Do Next?

• 77 Best Stocks NOW! >
• Options Trading with the Zen Ratings >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.