Two and a half years into the AI boom and things are still progressing at a torrid pace. Though markets experienced an especially sharp correction from March-May, much of the volatility stemmed from politically driven tariff headlines. With those policies now dialed back to more sustainable levels, growth forecasts have stabilized, and the AI trade is back in focus.

What’s remarkable is that for the first time in modern history, the pace of technological progress is being constrained not by ideas, but by physical bottlenecks: semiconductors, data centers, and even power generation. These chokepoints are creating compelling investment opportunities as demand for AI infrastructure continues to outpace supply.

Nvidia ((NVDA Quick QuoteNVDA - Free Report) ), Vertiv ((VRT Quick QuoteVRT - Free Report) ) and Vistra ((VST Quick QuoteVST - Free Report) ) represent some of the most compelling and diversified exposure to the theme. Not only are these stocks showing renewed stock price momentum, after an extended period of sideways action, but they are also trading at reasonable valuations, limiting the downside risk.

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Nvidia: Stock Price Approaching Record Highs

Nvidia remains the single most important company in the AI infrastructure buildout, continuing to lead in the development of cutting-edge chips that power the global boom in artificial intelligence. Most recently, the company expanded its reach beyond data centers and into robotics, unveiling Isaac GR00T, described as “the world’s first open, fully customizable foundation model for humanoid robots, enabling generalized reasoning and skill development.” This move positions Nvidia at the forefront of yet another high-growth frontier.

Despite its dominant market position, Nvidia's valuation remains relatively attractive. Shares currently trade at 32.4x forward earnings, well below the company’s 10-year median, while earnings are expected to grow at a robust 28.2% annually. For a company driving and defining the next generation of computing, this is a compelling setup.

Technically, the stock is showing renewed strength. After breaking out of a major descending channel last month, NVDA consolidated briefly before pushing higher again. With momentum clearly on its side, the stock now looks poised to retest and potentially break through its all-time high of $153.

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Vistra: Leading Stock for AI Power Generation

As the largest competitive power generator in the US, Vistra stands to be one of the biggest beneficiaries of the AI-driven surge in electricity demand. With the AI boom putting unprecedented strain on energy infrastructure, especially from data centers and high-performance compute clusters, reliable, large-scale power generation has become mission-critical. Vistra is uniquely positioned to meet this demand with its diversified portfolio, which includes natural gas, solar, battery storage, and nuclear assets.

The company trades at 28.3x forward earnings, with analysts forecasting a 34.6% jump in earnings over the next year. While this may seem elevated for a utility-like company, the growth rate and strategic relevance to the AI ecosystem may justify the premium.

Technically, VST has shown relentless strength since bottoming in April, climbing steadily with minimal pullbacks. On Tuesday, the stock jumped higher following news that Meta Platforms signed a 20-year agreement with Constellation Energy to purchase nuclear power. While Constellation’s stock gave back its initial gains, Vistra held firm, reinforcing its relative strength. The stock is now approaching all-time highs and continues to show strong momentum as investors recognize its crucial role in the next phase of AI infrastructure.

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Vertiv: Data Center Services Stock Exposure

Vertiv is a leading provider of critical infrastructure and services for data centers, communication networks, and industrial applications. As artificial intelligence continues to drive exponential growth in data creation and processing, demand for next-generation data center infrastructure has surged and Vertiv is one of the primary beneficiaries.

The company offers power management systems, thermal solutions, and monitoring tools that are essential for keeping high-density AI data centers online and operating efficiently. As hyperscalers and enterprise clients race to build out capacity for AI workloads, Vertiv’s role in enabling that expansion makes it a direct play on one of the fastest-growing segments of tech infrastructure.

Vertiv currently trades at 30.8x forward earnings, with analysts projecting impressive annual earnings growth of 27.2% over the next three to five years. Given its growth trajectory and strategic importance in the AI ecosystem, the valuation appears well-supported.

From a technical standpoint, VRT has been in a strong uptrend since its April lows, with multiple bullish consolidations and breakouts along the way. Most recently, the stock broke out of a textbook bull flag formation, retested the breakout level, and has resumed its move higher. With momentum accelerating again, a run to all-time highs seems like the natural next step.

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Should Investors Buy Shares in NVDA, VST and VRT?

With AI adoption continuing at an unrelenting pace, the strongest opportunities are obvious—semiconductors, energy, and data centers. Nvidia, Vistra, and Vertiv each represent a different yet complementary piece of that ecosystem. All three are showing strong momentum, robust earnings growth, and valuations that remain reasonable given their strategic importance. For investors looking to ride the next leg of the AI boom, these stocks offer compelling, diversified exposure.