AI Stocks Crushing Nvidia in 2026

In-Depth Analysis

Lumentum Holdings manufactures optical and photonic components like lasers and transceivers, essential for high-speed connectivity in data centers. The demand for these components is driven by hyperscalers needing to reduce latency in AI model training and inference. This demand has led to a 72% increase in revenue in the first nine months of fiscal 2026.

Applied Materials benefits from the increasing demand for wafer and fabrication equipment (WFE) required to manufacture AI chips. The company’s revenue increased by 11% year-over-year in the second quarter of fiscal 2026, with expectations of a 23% jump in the current quarter. Partnerships with TSMC, Micron Technology, SK Hynix, and Samsung further solidify its position in the semiconductor equipment market.

These companies are capitalizing on the AI boom by providing critical infrastructure, resulting in significant stock gains and strong growth prospects.

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FAQ

Why are Lumentum and Applied Materials outperforming Nvidia?

They provide essential components and equipment for AI infrastructure, experiencing high demand.

What is the growth outlook for Lumentum?

The optical component market is expected to grow at an annual rate of 21% through 2029.

How is Applied Materials benefiting from the AI boom?

Through increased demand for semiconductor equipment and partnerships with major industry players.

Takeaways

Lumentum and Applied Materials are key players in the AI infrastructure space.
These stocks have shown significant gains in 2026, outperforming Nvidia.
Investors should consider the growth potential of companies providing essential AI infrastructure.

Discussion

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Sources

Opinion | The First A.I. High School in the U.S. Is Surprisingly Human 3 Years of the AI Stock Market Boom in Charts These Artificial Intelligence (AI) Stocks Have Crushed Nvidia in 2026 With Gains of 67% and 121%. They Can Still Soar Higher

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