AI stocks, NVIDIA Rubin chip, data center buildout, photonics fiber optics, advanced packaging, gallium nitride power, and chip design software are creating “picks-and-shovels” winners—here are 6 NVIDIA-linked stocks that could have more upside than NVIDIA over the next year or two.Jeffrey Neal John

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The analysis focuses on identifying stocks within the NVIDIA ecosystem that possess high growth potential, leveraging a strategy termed "drafting the titan." It posits that while NVIDIA (NVDA) itself, with its $4.6 trillion market capitalization, may not double in the near term due to the law of big numbers, companies in its supply chain are positioned for significant growth. The introduction of NVIDIA's new Rubin GPU necessitates advancements in supporting infrastructure, including clean power supply, high-speed photonics, and advanced chip packaging. Six companies are identified as beneficiaries of this trend. Flex Limited (FLEX) provides critical power and cooling solutions for data centers, essential for running high-power AI chips. Coherent (COHR) specializes in photonics, offering high-speed data interconnection solutions using Indian Phosphide lasers, an area where they hold a near-monopoly. Amkor Technology (AMKR) offers advanced chip packaging services, serving as a crucial pressure relief valve for major foundries and being the sole US-based player in this space. Navitas Semiconductor (NVTS) develops chips using Gallium Nitride (GaN), a material significantly superior to silicon for high-speed charging and heat dissipation, making it indispensable as silicon reaches its limits. Finally, Synopsys (SNPS) and Cadence Design Systems (CDNS) provide essential design software for chip development, both being strategic partners with NVIDIA. The analysis highlights analysts consistently raising price targets for these companies, indicating a sustained upward trajectory.

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