The artificial intelligence (AI) frenzy remains intact, although the rally suffered setbacks in the first quarter of 2026.  The AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. Research firm McKinsey & Co. has estimated that global AI-powered data center infrastructure capex will reach around $7 trillion by 2030.

Four major hyperscalers have decided to invest a massive $650 billion in 2026 as capital expenditure for AI-infrastructure development. This marks a significant 71.1% year-over-year increase in capital spending on the AI ecosystem.

Here, we have narrowed our search to five Zacks top-ranked AI infrastructure giants that have provided double-digit returns in the past month. These stocks are set to provide stellar returns in 2026. 

The companies are: Micron Technology Inc. (MU Quick QuoteMU - Free Report) , Broadcom Inc. (AVGO Quick QuoteAVGO - Free Report) , Ciena Corp. (CIEN Quick QuoteCIEN - Free Report) , Sandisk Corp. (SNDK Quick QuoteSNDK - Free Report) and Credo Technology Group Holding Ltd. (CRDO Quick QuoteCRDO - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

Micron Technology Inc.

Micron Technology is benefiting from the rapidly expanding AI-driven memory and storage markets. The positive impacts of inventory improvement across multiple end markets are driving top-line growth. 

MU 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. MU’s investments in next-generation DRAM and 3D NAND ensure that it remains competitive in delivering the performance needed for modern computing.

Micron Technology has an expected revenue and earnings growth rate of more than 100% each, respectively, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 3.7% over the last 30 days. 

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Broadcom Inc.

Broadcom is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. Strong demand for its networking products and custom AI accelerators (XPUs) has been noteworthy. 

While the latest expansion of deals with Google and Anthropic has given AVGO a lift, the company is thriving primarily due to its AI semiconductor solutions, including custom AI accelerators and AI networking.

AVGO’s AI segment benefits from custom accelerators and advanced networking technology that support large-scale AI deployments with improved performance and efficiency. AVGO expects second-quarter fiscal 2026 AI revenues to surge 140% YoY to $10.7 billion. 

AVGO’s networking portfolio is gaining from the strong demand for Tomahawk 6 products. The acquisition of VMware has benefited Infrastructure software solutions. A rich partner base is a key catalyst.

Broadcom has an expected revenue and earnings growth rate of 60.4% and 67.9%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% over the last seven days.

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Ciena Corp.

Ciena has been benefiting from accelerating AI-led demand from cloud and service provider customers. Powered by strong cloud and service provider momentum, CIEN has gained 2 points of optical market share year to date and expects further gains in 2026.

CIEN’s first-quarter fiscal 2026 reflected a 33% year-over-year top-line gain, 111% EPS growth and a record $7 million order backlog, driven by accelerating AI-led demand from cloud and service provider customers. 

CIEN continues to capitalize on WAN connectivity needs across subsea, long-haul, metro networks and DCI. Better pricing, Hyper-Rail innovation and cost optimization are expected to boost gross margins, ahead. For fiscal 2026, adjusted gross margin is projected at 43.5-44.5%. 

With the first half exceeding expectations and supply challenges being managed, CIEN now expects first- and second-half gross margins to be roughly similar. It is managing supply conditions effectively and expanding capacity, but demand is expected to exceed supply for the next several quarters. For the second quarter, CIEN expects revenues of $1.5 billion (+/-$50 million).

Ciena has an expected revenue and earnings growth rate of 27.1% and more than 100%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% in the last seven days.

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Sandisk Corp.

Sandisk has benefited from the structural shift toward AI computing, which requires significantly more NAND flash storage per deployment compared with traditional workloads. AI training models and inference applications generate massive data volumes that demand high-performance enterprise solid-state drives, while edge devices need greater storage capacity to support on-device AI features. 

This creates a favorable demand environment where SNDK can command premium pricing for its advanced technology products while maintaining disciplined supply allocation. The benefits materialized in the fiscal second-quarter performance, with datacenter revenues surging 76% year over year, driven by adoption across cloud hyperscalers and enterprise customers. 

SNDK’s BiCS8 quad-level cell storage product continues to advance through qualification with two major hyperscalers and is expected to generate revenues soon. The extended joint venture agreement with Kioxia Corporation through December 2034 positions Sandisk favorably against peers.

Sandisk has an expected revenue and earnings growth rate of more than 100% each, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 2.9% in the last seven days. 

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Credo Technology Group Holding Ltd.

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 Active Electrical Cables (“AEC”) business sits at the core of its growth narrative, playing an increasingly critical role in AI-driven networking deployments. CRDO’s hyperscaler traction sits at the center of its AEC strength. Beyond traditional hyperscalers, Credo is also seeing increasing demand from Neocloud providers.

Apart from AEC, CRDO is now focusing on the IC portfolio (retimers and DSPs), which includes retimers and optical DSPs, and has continued to show a healthy performance. Credo’s PCIe retimer program remains on track for design wins in fiscal 2026 and revenue contributions in the next fiscal year. 

Frequent product launches (Cardinal optical DSP, Robin optical DSP family and Blue Heron) are expected to aid CRDO in expanding its market share. CRDO is increasing its focus on three new product families that broaden the total addressable market and boost its long-term growth strategy. These include Zero-Flap optics, Active Linear Cables and OmniConnect gearboxes. 

CRDO recently announced the general availability of next-generation 800G 2×DR4 ZF optical transceivers, designed to eliminate optical link flaps that often disrupt large-scale AI infrastructure.

CRDO is ramping up its M&A efforts to gain an edge against rivals. After acquiring high-speed connectivity IP innovator CoMira Solutions and microLED technology firm, Hyperlume, CRDO recently announced a deal to acquire DustPhotonics for $750 million (cash plus stock and performance-based incentives). The company will bring Silicon Photonics Photonic Integrated Circuit (SiPho PIC) capabilities or optical transceivers in-house.

Credo Technology has an expected revenue and earnings growth rate of 50.4% and 42% respectively, for next year (ending April 2027). The Zacks Consensus Estimate for the next year’s earnings has improved 4.4% over the last 60 days.

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