The artificial intelligence (AI) infrastructure sector is experiencing significant growth, underscored by increased market confidence stemming from an anticipated trade deal between the United States and trading partners, the Federal Reserve’s potential rate cuts, and easing recession fears. Three notable AI infrastructure stocks—Credo Technology Group Holding Ltd. (CRDO), Jabil Inc. (JBL), and Lumentum Holdings Inc. (LITE)—have all shown a rise of over 10% in the past month, each holding a Zacks Rank of #1 (Strong Buy).
Investment in AI infrastructure is projected to reach $325 billion in 2025, reflecting a 46% year-over-year growth in capital expenditures. Research from Oppenheimer suggests the total addressable global sovereign AI market could expand significantly to $1.5 trillion. The high-performance solutions offered by these companies are expected to drive advancements across sectors, including cloud computing, robotics, and healthcare, over the next five years.
For the current year ending April 2026, CRDO forecasts earnings growth exceeding 100%, with a revenue growth estimate of 85.8%. JBL anticipates a revenue growth rate of 5.6% and an earnings growth rate of 17.8% for the fiscal year ending August 2026. LITE is projected to achieve revenue growth of 32.8% and over 100% in earnings for the current year ending June 2026.
