AI Infrastructure Will Mint More Millionaires Over the Next Decade: 3 Stocks to Buy Right Now
2026-07-23 13:30
•Leo Sun •The Motley Fool
••••• •••• Axe Capital view
AI Infrastructure Set to Create Big Winners, Including for SA Investors
Three infrastructure stocks stand to benefit hugely from AI’s data center boom, offering an actionable route into the AI revolution beyond pure chipmakers.
The AI hype tends to focus on chipmakers like Nvidia, but the real ground-level growth lies in the infrastructure underpinning data centers. Connectivity chips, fiber-optic components, and cooling systems all get a boost as AI workloads soar. Marvell (MRVL), Coherent (COHR), and Vertiv (VRT) are prime plays here, each with projected EBITDA growth in the 40% range over the next five years. While these are US-listed stocks, the rand’s recent weakness against the dollar (USD/ZAR around 19) amplifies the local appeal of tech-related offshore exposure. South African investors should consider these as part of a diversified basket, pairing them with local tech proxies like Prosus and Naspers for a more balanced AI theme. The risk? AI’s infrastructure demand could slow if growth in AI applications falters or competitors disrupt with alternative tech. Still, backing these mid-tier infrastructure names feels more grounded than chasing the frothier chipmakers alone. this is just my opinion and not financial advice
Buy MRVL, COHR, and VRT for offshore AI infrastructure exposure, and complement with Prosus for local-listed tech upside. Keep an eye on USD/ZAR as it impacts returns.
- MRVL
- COHR
- VRT
- Prosus
- USD/ZAR
- AI tech adoption slows, reducing infrastructure upgrades
- Rand strengthens sharply, dulling offshore returns
7/10
The global AI infrastructure market is projected to expand at 26.6% CAGR through 2034. Three infrastructure leaders—Marvell, Coherent, and Vertiv—are positioned to capitalize on this growth through connectivity chips, fiber-optic components, and cooling systems respectively. All three stocks show strong EBITDA growth projections and are considered reasonably valued relative to their long-term potential.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Leo Sun
Categories: Commodities, Metals, Technology, AI, Semiconductors
Tickers: MRVL, COHR, VRT, NVDA
Sentiment: Positive - Company provides essential high-speed connectivity chips and DPUs for AI data centers with projected 44% EBITDA CAGR through 2029. Positioned as a key beneficiary of AI infrastructure expansion. Leading photonics company experiencing strong demand as data centers replace copper with fiber-optic cables. Expected 44% EBITDA CAGR through 2028 reflects robust growth prospects in AI infrastructure.
Keywords: AI infrastructure, data center upgrades, semiconductor connectivity, fiber-optic technology, thermal management, EBITDA growth
Insights:
- MRVL: Positive: Company provides essential high-speed connectivity chips and DPUs for AI data centers with projected 44% EBITDA CAGR through 2029. Positioned as a key beneficiary of AI infrastructure expansion.
- COHR: Positive: Leading photonics company experiencing strong demand as data centers replace copper with fiber-optic cables. Expected 44% EBITDA CAGR through 2028 reflects robust growth prospects in AI infrastructure.
- VRT: Positive: Provides critical thermal management and cooling solutions for high-powered AI chips. Co-developing infrastructure with Nvidia and projecting 38% EBITDA CAGR through 2028, indicating solid growth trajectory.