AI's Growing Demand for Computing Power Is Creating New Winners. Here's Where Investors Should Look
Nvidia isn't the only company benefiting from AI's growing appetite for computing power. The rush to build data centers has created shortages of memory, server processors, power chips, and optical connections, giving suppliers room to raise prices. For investors, that opens up opportunities beyond the usual chipmakers, although some companies are better positioned than others.
Memory prices keep climbing
SanDisk has found itself in an enviable position: Customers need more storage than it can supply. The company's quarterly revenue surged 372% from a year earlier to $8.97B, while adjusted gross margin climbed to 84.6% from 26.4%.
Higher prices accounted for roughly two-thirds of the sequential revenue increase, and there may be more to come. Research firm TrendForce expects NAND flash prices to rise 235% this year, while SanDisk says its supply will remain restricted beyond 2027.
The company has also secured agreements with eight data center and edge-computing customers worth at least $93.9B at minimum contracted prices. CEO David Goeckeler says customers are already planning purchases through the end of the decade, giving SanDisk unusually strong visibility into future demand.
Suppliers Around the GPU Are Growing Fastest
Latest reported year over year revenue growth, %, as of Oct. 2026
Bar chart. SanDisk: Revenue Growth (%) 372%. Lumentum: Revenue Growth (%) 109.30%. Monolithic Power: Revenue Growth (%) 63.10%. Intel: Revenue Growth (%) 59%.
Source: 24/7 Wall St., StockStory, Yahoo Finance, Benzinga
Intel gets another chance
AI may be built around graphics chips, but traditional server processors still handle much of the work behind the scenes. That demand is helping Intel, whose Data Center and AI revenue climbed 59% to $6.3B in the second quarter.
The segment's operating margin improved to 39.5% from 16.1% a year earlier, partly because Intel has been able to charge more. New Street Research analyst Pierre Ferragu expects server processor shortages to persist for years as AI agents become more widely used.
Yet Intel's broader recovery remains uneven. Its fourth-quarter revenue forecast of $15B to $16B missed Wall Street's $17.05B estimate. CEO Lip-Bu Tan is prioritizing additional Xeon processor supply, but that could eventually put pressure on prices. Intel needs higher volumes to make up for any decline in margins.
Power chips are selling fast
AI processors consume enormous amounts of electricity, and delivering that power efficiently has become a growing business for Monolithic Power Systems.
The AI Shortage Has Moved Down the Supply Chain
Where the constraint sits, by component, as of Oct. 2026
| Bottleneck | Company | Evidence |
|---|---|---|
| Memory/storage | SanDisk | Bits on allocation beyond 2027 |
| Server CPUs | Intel | Supply short of Xeon demand |
| Power | Monolithic Power | Q4 guide implies about 80% growth |
| Optics | Lumentum | Revenue up 109.3% |
Source: 24/7 Wall St., StockStory, Benzinga, Yahoo Finance
The company reported third-quarter revenue of $1.20B, up 63.1% from a year earlier, while adjusted operating income reached $464.5M. Its fourth-quarter forecast of roughly $1.35B suggests revenue growth could accelerate to nearly 80%.
Inventory days fell to 130 from 140, indicating that products are moving through the business more quickly. Revenue has now increased for 11 consecutive quarters, and the latest guidance suggests demand remains strong heading into year-end.
Marvell looks beyond copper
As AI data centers grow, moving information between processors is becoming more difficult. Copper connections have limitations over longer distances, creating greater demand for optical technology that uses light to transmit data.
Marvell Technology ($MRVL) is reportedly nearing an acquisition of Lumentum, whose lasers and optical components are increasingly important to AI infrastructure. Lumentum's quarterly revenue rose 109.3% to $1.01B, and it expects newer optical technology to begin scaling in 2028.
An acquisition would give Marvell greater control over its supply chain, but financing remains a concern. With roughly $3.92B in cash, the company could need additional debt or new shares to fund the purchase. No agreement has been announced, and the potential cost to shareholders remains unclear.
Where investors should look
The four companies offer different ways to benefit from AI infrastructure spending, but their risks vary considerably.
SanDisk has the strongest demand visibility, supported by long-term customer agreements and limited supply. The concern is whether its unusually high margins can hold once production catches up.
Monolithic Power has the clearest operating momentum, with accelerating revenue and declining inventory days suggesting that demand is translating into shipments.
Intel faces a tougher balancing act. Higher server prices have helped margins, but New Street expects its capacity to grow more than 50% in 2027. That could make today's pricing gains difficult to maintain.
Marvell has the most uncertainty, particularly around a potential Lumentum acquisition. The optical opportunity is growing, but investors still need to know how much the deal would cost and how it would be financed.
Demand is strong across all four businesses. The harder question is which companies can keep growing when supply finally catches up.
