The artificial intelligence (AI) saga, supported by the massive growth of cloud computing and data centers, is yet to unfold fully. The momentum of the AI infrastructure segment is in top gear this year. 

The AI space remains rock solid supported by an extremely bullish demand scenario. This huge spending on AI infrastructure will dramatically change the world over the next five years in fields such as hyperscale automation, robotics, healthcare, energy, materials, financials and cybersecurity. 

Here we recommend five AI infrastructure stocks that have provided triple-digit returns this year. Despite this enormous rally, their current favorable Zacks Rank indicates more room to grow in the fourth quarter. 

These stocks are: Credo Technology Group Holding Ltd. (CRDO Quick QuoteCRDO - Free Report) , Western Digital Corp. (WDC Quick QuoteWDC - Free Report) , Celestica Inc. (CLS Quick QuoteCLS - Free Report) , Micron Technology Inc. (MU Quick QuoteMU - Free Report) and Ubiquiti Inc. (UI Quick QuoteUI - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Credo Technology Group Holding Ltd.

Zacks Rank #1 Credo Technology is a provider of high-performance serial connectivity solutions for the hyperscale datacenter, 5G carrier, enterprise networking, artificial intelligence and high-performance computing markets.

CRDO’s main business is its Active Electrical Cables (AEC) product line. AEC is gaining traction owing to its increasing adoption in the data center market. The demand for AECs is increasing as ZeroFlap AECs offer more than 100 times improved reliability than laser-based optical solutions. 

This has made AECs an increasingly attractive option for data center applications. With the demonstration of PCIe Gen6 AECs and increasing hyperscaler interest, this product line is expected to remain a growth engine.

Strength in the optical business, particularly Optical Digital Signal Processors (DSPs), is another key catalyst. CRDO expects an expansion of customer diversity across lane rates, port speeds and applications to accelerate revenue growth going forward. 

CRDO announced that it achieved a key 800-gig transceiver DSP design win and unveiled ultra-low-power 100 gig-per-lane optical DSPs built on 5-nanometer technology. CRDO expects its 3-nanometer 200 gig-per-lane optical DSP to boost the industry’s transition to 200-gig lane speeds. 

Supplementing these businesses is CRDO’s PCIe retimers and Ethernet retimers business. This particular product line continues to witness customer interest, especially for scale-out networks in AI servers. CRDO highlighted that the retimer business delivered “robust” performance driven by 50 gig and 100 gig per lane Ethernet solutions.

This growing demand underscores the increasing importance of high-performance solutions in the rapidly expanding AI server market. Shift to 100 gig per lane solutions and higher demand for system-level expertise and software capabilities for dealing with AI-optimized architectures bode well for CRDO’s retimer business.

Credo Technology has an expected revenue and earnings growth rate of more than 100% each, respectively, for the current year (ending April 2026). The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 30 days.

Western Digital Corp.

Zacks Rank #1 Western Digital has been witnessing strong execution amid intensified cloud and AI demand. Cloud end market (90% of total revenue) surged 36% in the last reported quarter, driven by strong demand for high-capacity nearline HDDs. WDC doubled shipments of 26TB CMR and 32TB UltraSMR drives and is on track to ramp up HAMR drives in the first half of 2027.

WDC expects the proliferation of generative AI-driven storage deployments to result in a client and consumer device refresh cycle, and boost content creation and storage in smartphone, gaming, PC and consumer electronics in the long run. The increasing AI adoption is likely to drive increased storage demand across both HDD and Flash at the edge and core, thereby providing ample business opportunities. 

Generative AI adoption surged to 65% in 2024 from 33% in 2023. Gen AI adoption is driving eSSD sales due to its speed, reliability and efficiency over HDDs. Growing AI data boosts demand, fueling eSSD market growth and reshaping storage.

Agentic AI is driving future data growth, while its platform business is gaining traction among native AI firms and SaaS providers. WDC expects fiscal first-quarter 2026 revenues of $2.7 billion (+/- $100 million), up 22%, driven by strong data center demand and high-capacity drive adoption.

Western Digital has an expected revenue and earnings growth rate of -17.8% and 34.3%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the last 30 days. 

Celestica Inc.

Zacks Rank #2 Celestica is one of the largest electronics manufacturing services companies in the world, serving OEMs, cloud-based and other service providers, and business enterprises across several industries. CLS offers a comprehensive range of manufacturing and supply-chain solutions that support various customer requirements, from low-volume, high-complexity custom products to high-volume commodity products.

Celestica is benefiting from healthy demand trends in the Connectivity & Cloud Solutions segment. The growth is primarily backed by CLS’ strength in Hyperscaler Portfolio Solutions networking business and optical programs, especially increasing demand for 800G and 400G network switches. 

CLS has established itself as a dominant player in the rapidly expanding AI infrastructure market. Per Grandview Research, the AI infrastructure market is projected to reach $223.45 billion by 2030 at a compound annual growth rate of 30.4% from 2024 to 2030. Celestica is rapidly expanding its portfolio offering to capitalize on this market trend.

The growing proliferation of AI-based applications and generative AI tools is fueling solid AI investments across the technology ecosystem. This, in turn, is driving demand for CLS’ enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions and servers and storage-related products.

Celestica has an expected revenue and earnings growth rate of 20.6% and 43%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.9% in the last 90 days. 

Micron Technology Inc.

Zacks Rank #1 Micron Technology has become a leader in the AI infrastructure boom due to strong demand for its high-bandwidth memory (HBM) solutions. Record sales in the data center end market and accelerating HBM adoption have been driving MU’s Dynamic Access Random Memory (DRAM) revenues higher.

The growing adoption of AI servers is reshaping the DRAM market as these systems require significantly more memory than traditional servers. This is boosting demand for both high-capacity DIMMs (Dual In-line Memory Module) and low-power server DRAM. MU is capitalizing on this trend with its leadership in DRAM technology and a strong product roadmap that includes HBM4, slated for volume production in 2026.

Micron’s diversification strategy is also bearing fruit. MU has created a more stable revenue base by shifting its focus away from the more volatile consumer electronics market and toward resilient verticals such as automotive and enterprise IT.

As AI adoption accelerates, the demand for advanced memory solutions, such as DRAM and NAND is soaring. MU’s investments in next-generation DRAM and 3D NAND ensure that it remains competitive in delivering the performance needed for modern computing.

Micron has an expected revenue and earnings growth rate of 42.4% and more than 100%, respectively, for the current year (ending August 2026). The Zacks Consensus Estimate for current-year’s earnings has improved 27% over the last 30 days.

Ubiquiti Inc.

Zacks Rank #1 Ubiquiti’s excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it beat challenges and maximize growth. UI’s operating model is backed by a rapidly growing and highly engaged community of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals (referred to as the Ubiquiti Community).

Effective management of its strong global network, comprising more than 100 distributors and master resellers has improved its visibility for future demand. UI’s policy of consistent dividend payments while maintaining a sustainable payout ratio is positive. 

Healthy traction in the Enterprise Technology segment is a tailwind. UI has made significant investments in inventory to reduce lead times, meet increasing demand and support the growing number of customers. 

Ubiquiti has an expected revenue and earnings growth rate of 12% and 10%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 29.7% over the last 60 days.