This isn't the first time the AI boom has slammed into a physical limit.
First came the chip shortage. Companies paid anything for NVIDIA GPUs and NVIDIA became the most valuable company on earth.
(Members who acted on our 2005 recommendation saw gains as high as 125,508%*.)
Then came power and construction. AI runs on massive data centers, and someone has to build them.
(We recommended Sterling Infrastructure last September. It's already up over 150%*.)
Now comes the third bottleneck. The wiring.
AI data centers consume more electricity than Japan. But a huge chunk of that power is wasted because the chips inside are still connected with copper.
The fix? Fiber-optic glass. Tiny strands that carry data as light instead of electricity. A fraction of the power consumption. None of copper's distance limitations.
One company dominates the global supply of it.
NVIDIA committed up to $3.2 billion.
When NVIDIA puts this kind of money behind a company, the results speak for themselves. It invested in Intel at $23 a share. The stock is above $109. It partnered with IREN on AI data centers… up over 500% in a year. Fluence Energy jumped over 50% in a single day after an NVIDIA deal.*
Meta committed $6 billion in a separate deal.
Three new U.S. factories are being built to meet demand.
And the CEO has raised revenue targets three times in the past year.
We first recommended this stock in 2011. Members who acted are sitting on gains of 1,681%.*
With the buildout accelerating and billions in new contracts locked in, our analysts just issued a rare "Double Down" alert.
The Motley Fool's Stock Advisor has been finding stocks like this for over two decades, with historical average returns of 923%*, beating the S&P 500 by nearly 5X*.
The buildout is accelerating. The companies being chosen to supply it are being locked in now. And our team has already identified 8 companies at the center of it… including NVIDIA's quiet partner.
All 8 are inside a new report: "The Great Data Center Buildout: 8 Stocks Powering America's AI Infrastructure."
It's complimentary for new Stock Advisor members.
NVIDIA didn't bet billions because this opportunity is years away. The replacement cycle has already started. And the investors who move first tend to make the most.
