AI Data Centre Stocks To Watch As Nvidia Backed Infrastructure Spending Draws Fresh Interest

Nscale’s push for a US listing at up to a $35b valuation, backed by Nvidia and anchored by long-term AI data centre contracts, has put a fresh spotlight on who really supplies the plumbing for AI. Capital is suddenly hunting for the next critical picks and shovels. This article examines three US and UK stocks from the AI data centre and cloud theme that could be positively exposed to this news-driven shift.

The three stocks covered below are just a small sample of this theme. The full screen on Simply Wall St surfaced more than 70 additional AI data centre and cloud infrastructure companies with equally compelling narratives that are not discussed here.

If you want to quickly identify potential high-conviction ideas in this space, jump straight into the AI Data Centre & Cloud Infrastructure screener to filter and analyze the broader opportunity set.

Astera Labs (ALAB)

Overview: Astera Labs designs semiconductor and software connectivity solutions that link high-speed chips, memory, and servers inside cloud and AI data centres.

Operations: Astera Labs generates about US$1.2b from semiconductors, with sales concentrated in China at US$395m, Singapore at US$384m, and Taiwan at US$313m.

Market Cap: US$50.9b

Astera Labs sits on the wiring inside AI data centres, turning rising demand for GPU clusters into a need for smarter connectivity hardware and software.

"Scorpio X customer breadth. Management expects additional customers by year-end beyond the lead hyperscaler."

What happens to Astera Labs’ margins and growth if a single unseen constraint inside those expanding AI racks starts to ease or tighten?

If that constraint matters to you, read the full narrative for Astera Labs to see how Astera Labs’ customer mix, pricing power, and contracts could be decoupling beneath the surface.

Lattice Semiconductor (LSCC)

Overview: Lattice Semiconductor develops low power FPGA chips and software that help control, secure, and accelerate data centre and edge AI hardware.

Operations: Lattice Semiconductor generates about US$651 million from its Core Lattice segment, with revenue concentrated in Greater China, the Americas, and Europe.

Market Cap: US$15.8b

For investors watching how AI data centres actually run, Lattice Semiconductor plugs into the control and security layer that keeps GPU heavy racks efficient and resilient.

"The ongoing AI and edge computing boom is driving hyperscale data center spend and increasing Lattice's attach rate as a companion chip for AI accelerators, servers, and networking equipment, leading to higher ASPs and robust design wins; this should accelerate revenue growth and support gross margin expansion."

What happens to Lattice Semiconductor’s earnings power if one quiet shift in how hyperscalers design and secure those racks gathers pace?

If that quiet design shift is on your radar already, use the full narrative for Lattice Semiconductor to see how Lattice Semiconductor’s attach rate and risks could be accelerating under the surface.

Kingsoft Cloud Holdings (KC)

Overview: Kingsoft Cloud Holdings runs cloud infrastructure and AI-ready services for enterprises and internet platforms, primarily across mainland China.

Operations: Kingsoft Cloud Holdings generates about CN¥11.0b in revenue from internet software and services, almost entirely from mainland China customers.

Market Cap: US$3.0b

For the AI data centre and cloud theme, Kingsoft Cloud Holdings matters because it directly operates the compute and storage backbone that AI workloads depend on. This puts its business model directly in the path of any shift in demand or pricing for large-scale cloud capacity.

"The accelerating commoditization of basic cloud infrastructure services and intensifying price competition from dominant Chinese and international cloud providers are set to put increasing pressure on Kingsoft Cloud's pricing power, resulting in ongoing margin compression and weaker long-term earnings."

What happens to Kingsoft Cloud’s path to higher quality AI revenue if a single unresolved pressure on profitability tightens instead of easing?

If that pressure point is on your mind, read the full narrative for Kingsoft Cloud Holdings to see how Kingsoft Cloud could convert pricing strain into higher quality AI revenue.

Seeking Fresh Alternatives For Your Curiosity?

Some opportunities move from quiet to crowded fast. Before the next breakout run is fully caught by the crowd, scan these fresh ideas while the data still matters and get in early.

• Spot potential turnarounds in overlooked quality by running the 16 high quality undiscovered gems, which filters for financially solid operators still flying just under the radar.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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