3 AI Infrastructure Stocks With Upside After the Summer Rally
Artificial intelligence (AI) is an all-consuming investment thesis that will last for years, if not decades. For many investors, that means investing in some of the year’s hottest stocks, such as NVIDIA (NASDAQ: NVDA) or Palantir (NASDAQ: PLTR). However, many investors are attracted to companies that are building the infrastructure surrounding AI.
Think of AI infrastructure like the human body. Semiconductors are like the heart and circulatory system. They supply the processing power that circulates through servers and networks. Without that constant flow, the body—in this case, data centers—can’t function.
But other body parts are essential to a healthy life, and so it is with AI infrastructure. Data center demand is a long-term story backed by significant capital expenditures from many of the largest hyperscalers.
Here are three names that manage different parts of this infrastructure boom. Each stock has had a nice rally at one point in 2025 and has price targets that hint at larger gains ahead.
Super Micro Computer Provides Custom Servers for AI Growth
Super Micro Computer Inc. (NASDAQ: SMCI) represents the bones and muscles. The company provides the picks and shovels for AI in the form of customizable servers and racks that can integrate the semiconductor chips from companies like NVIDIA.
This makes them indispensable for hyperscalers that are building out data centers. The entire AI narrative centers around more GPUs, which means more demand for Super Micro Computer’s hardware will increase, not decrease over time. The company believes its engineering-to-order model and rapid time-to-market will help it stave off competition in this market.
SMCI stock is up approximately 48% in 2025, but only about 4% in the last three months. The stock has met resistance at around the $60 level at two different points this year. Nevertheless, that remains the price target of at least one analyst, Quinn Bolton, from Needham.
Arista Networks Provides High-Speed Networking for AI Clusters
Continuing the body analogy, Arista Networks Inc. (NYSE: ANET) acts like the body’s nervous system. The company provides the network connections that allow AI clusters to work together.
Arista is the dominant player in the data center switching market with its 400G and 800G Ethernet solutions. This is reflected in the commitments the company has from companies such as Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META).
ANET stock is up 27.8% in 2025, but it’s made a strong move of over 57.5% in the last three months. With a forward price-to-earnings ratio of around 64x, ANET stock is at a premium compared to itself and the technology sector. However, the consensus price target of $157.88 suggests there is an 11% upside, along with analysts like Goldman Sachs, who have significantly higher price targets.
Broadcom Is the Chipmaker Behind AI Acceleration
NVIDIA may be the dominant GPU name in the sector, but Broadcom Inc. (NASDAQ: AVGO) plays a vital niche role. The company provides many AI systems with application-specific integrated circuit chips (ASICs), high-bandwidth memory controllers, and networking chips.
Like the other names on this list, Broadcom's bull case centers around its partnerships with AI hyperscalers such as Alphabet (NASDAQ: GOOGL), Meta Platforms, and Amazon (NASDAQ: AMZN). These companies want Broadcom to design chips that are optimized for AI workloads, potentially reducing their dependency on NVIDIA.
AVGO stock is up about 51% in 2025 and approximately 40% in the last three months. That’s pushed the stock close to its consensus price target and within 10% of its 52-week high.
However, analysts have come out of the gate bullish since Broadcom’s latest earnings report in September. Many analysts give the stock a price target well above the consensus price. The most aggressive target comes from Macquarie, which initiated its coverage with an Outperform rating and a $420 price target.
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