Forget Micron - Nvidia Just Quietly Invested Billions Into These 3 AI Stocks - I'm Going All-In

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The analysis highlights the growing demand and investment in AI infrastructure, specifically focusing on three key players: Lumentum Holdings (LITE), Nebius Group N.V. (NBIS), and Applied Digital Corporation (APLD). Lumentum is noted for its strong revenue growth and accelerating profitability, driven by its advanced optical transceiver modules that are critical for high-speed data center connectivity. The company's Q4 FY26 results showed significant year-over-year revenue growth and a substantial increase in gross margin, reaching 50.4%. Their guidance for Q1 FY27 projects revenues between $1.225 billion and $1.275 billion, indicating continued strong performance. Nebius is presented as a rapidly scaling AI cloud infrastructure provider, experiencing exponential growth in its AI business with a 514% increase in revenue year-over-year, reaching $575 million in Q2 2026. Their annualized run rate revenue hit $3 billion, showcasing significant momentum. The company is strategically positioned with long-term contracts and upfront payments that cover a substantial portion of CapEx, enabling rapid deployment of AI clusters and a short payback period of 1 year and 10 months for deals. Applied Digital is highlighted for its strategic approach to building AI factory campuses with long-term horizons (30+ years), focusing on sustainable and profitable growth. The company has secured approximately $36 billion in contracted revenue and is aggressively expanding its capacity, projecting over 600 MW to enter service in the next 12 months, more than double the previous year's deployment. Their recent Q1 FY27 results show revenues of $341.9 million, a 322% increase year-over-year, with an impressive net operating income margin of 89%. The core strategy revolves around building large, sustainable AI campuses and securing long-term, take-or-pay contracts with Tier 1 hyperscalers, ensuring predictable and significant revenue streams.

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