{"id":33749,"date":"2026-05-10T15:34:15","date_gmt":"2026-05-10T15:34:15","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/33749\/"},"modified":"2026-05-10T15:34:15","modified_gmt":"2026-05-10T15:34:15","slug":"vrt-cdns-cien-stocks-ai-infrastructure-rotation-beyond-nvda-in-2026","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/33749\/","title":{"rendered":"VRT, CDNS, CIEN Stocks: AI Infrastructure Rotation Beyond NVDA in 2026"},"content":{"rendered":"

NVIDIA Today\"NVIDIA$215.10 +3.60\u00a0(+1.70%) As of 05\/8\/2026 03:59 PM Eastern This is a fair market value price provided by Massive. Learn more.<\/a>52-Week Range$115.21<\/p>\n

\u25bc<\/p>\n

$217.80<\/p>\n

Dividend Yield0.02%<\/p>\n

P\/E Ratio43.90<\/p>\n

Price Target$275.25<\/p>\n

It\u2019s\u00a0not hyperbole to say\u00a0NVIDIA Corp. NASDAQ: NVDA<\/a>\u00a0has made many investors millionaires.<\/p>\n

NVDA\u00a0is\u00a0up more than 1,300% in the last five years. Go back 10 years, and NVDA has delivered a staggering total return of over 23,800%. That means an investor who put about $3,500 in NVIDIA stock 10 years ago and held it would be a millionaire.<\/p>\n

Of course, the issue is that many investors\u00a0didn\u2019t\u00a0see NVIDIA\u2019s key role in the artificial intelligence (AI) revolution<\/a>.\u00a0It\u2019s\u00a0been a transformative event that continues to ripple through the economy.<\/p>\n

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But\u00a0it\u2019s\u00a0also changing the outlook for where the smart money is going. To be sure, NVDA will continue to do well.\u00a0But\u00a0it\u2019s\u00a0\u201conly\u201d\u00a0up about 11% in 2026<\/a>, and prior to mid-April, it was negative for the year.<\/p>\n

The AI Infrastructure Story Is Expanding<\/p>\n

A bearish view on NVIDIA is that the AI bubble is getting ready to burst. This earnings season\u00a0doesn\u2019t\u00a0clearly support that take, but\u00a0the narrative\u00a0won\u2019t\u00a0die easily.<\/p>\n

A more\u00a0accurate\u00a0reason for the slide in NVDA is a rotation within the AI story. Specifically, investors have realized that NVIDIA\u00a0isn\u2019t\u00a0the only game in town<\/a>. <\/p>\n

The market has increasingly treated AI as a full-stack buildout\u2014compute, power, cooling, networking, and software\u2014rather than a single-company trade, and there are other companies that are critical to the AI buildout that are part of an \u201cNVIDIA and\u201d portfolio.<\/p>\n

These stocks fit into the picks-and-shovels theme that is gaining momentum. Although they sit in different parts of the AI infrastructure chain<\/a>, they are each tied to the physical and technical requirements for scaling AI. And a common denominator for the group\u00a0is\u00a0their strong growth\u00a0since April 1, which is likely to continue\u00a0for several years.<\/p>\n

Vertiv Is Solving the AI Data Center Cooling ProblemVertiv Stock Forecast Today12-Month Stock Price Forecast:
$281.29
-17.27% DownsideModerate Buy
Based on 26 Analyst RatingsCurrent Price$340.02High Forecast$414.00Average Forecast$281.29Low Forecast$112.00Vertiv Stock Forecast Details<\/a><\/p>\n

Data centers\u00a0require\u00a0massive amounts of energy and give off tremendous amounts of heat. That requires thermal management solutions, which is why\u00a0Vertiv\u00a0NYSE: VRT<\/a>\u00a0is up\u00a0over over 100% in 2026<\/a>, and up nearly 260% in the past year.<\/p>\n

The company is the equivalent of the person selling umbrellas on a rainy day.\u00a0Hyperscalers\u00a0have a problem; Vertiv has the solutions<\/a>.<\/p>\n

Vertiv reported\u00a0Q1 2026 earnings<\/a>\u00a0on April 22. The only blemish in an otherwise\u00a0strong\u00a0report\u00a0was\u00a0possible headwinds\u00a0from tariffs.\u00a0Since the earnings release, some analysts have been raising their price targets<\/a>, but the updated targets are mostly in line with VRT’s current share price.\u00a0One could argue that this indicates new investors should wait for a better entry point.<\/p>\n

On the other hand, analysts are forecasting 33% revenue growth, which makes the company\u2019s\u00a0forward price-to-earnings (P\/E) of around 50x seem like a premium worth paying.<\/p>\n

One concern is\u00a0that\u00a0Amazon.com<\/a> Inc. NASDAQ: AMZN<\/a>, a current\u00a0Vertiv customer,\u00a0is developing its own liquid cooling solution. This could be a\u00a0longer-term\u00a0headwind, but it only\u00a0impacts\u00a0about\u00a010% of the company\u2019s revenue base<\/a>.<\/p>\n

Cadence Design Systems Powers the Next Generation of AI ChipsCadence Design Systems Stock Forecast Today12-Month Stock Price Forecast:
$380.59
4.93% UpsideModerate Buy
Based on 17 Analyst RatingsCurrent Price$362.70High Forecast$425.00Average Forecast$380.59Low Forecast$275.00Cadence Design Systems Stock Forecast Details<\/a><\/p>\n

Chipmakers are getting a second wind in the AI trade. That explains why shares of\u00a0Cadence Design Systems NASDAQ: CDNS<\/a>\u00a0are up around 27%<\/a> over the past month.\u00a0And it\u2019s\u00a0a good bet that the stock has\u00a0further to\u00a0run.<\/p>\n

Cadence provides electronic design automation (EDA) software,\u00a0hardware\u00a0and intellectual property that chip makers need, particularly the companies making the most advanced chips.<\/p>\n

The company reported\u00a0Q1 2026 earnings<\/a>\u00a0on April 27 with a beat on the top and bottom lines. A recent acquisition may pressure earnings for the\u00a0remainder\u00a0of this calendar year. But the long-term outlook for CDNS looks\u00a0strong and is backed by analysts who are raising price targets since the earnings report. KeyCorp has the\u00a0highest target of $425<\/a>, up from $405.<\/p>\n

That said, Cadence has a forward P\/E of around 57. That could be seen as an\u00a0aggressive\u00a0valuation if the company\u2019s earnings are\u00a0impacted\u00a0in future quarters.<\/p>\n

Ciena Is Building the High-Speed AI Networking BackboneCiena Stock Forecast Today12-Month Stock Price Forecast:
$367.56
-32.76% DownsideModerate Buy
Based on 20 Analyst RatingsCurrent Price$546.61High Forecast$585.00Average Forecast$367.56Low Forecast$185.00Ciena Stock Forecast Details<\/a><\/p>\n

Ciena Corp. NYSE: CIEN<\/a>\u00a0is an optical networking company, specifically focused on the high-speed optical connections that data centers\u00a0require.<\/p>\n

It\u2019s\u00a0hard to understate Ciena\u2019s relevance as vast amounts of data move between servers, storage, and the outside world.<\/p>\n

Ceina reported\u00a0Q1 earnings<\/a>\u00a0on March 5, with record revenue and a backlog approaching\u00a0$7 billion.<\/p>\n

The only \u201cproblem\u201d\u00a0in\u00a0the report is the company\u2019s ability to meet that demand.\u00a0In the report, Ciena said it anticipates supply constraints preventing it from realizing all its revenue. This is coming despite the company\u2019s\u00a0accelerated\u00a0capital expenditures to meet capacity.<\/p>\n

CIEN has a\u00a0consensus price target of $367.56<\/a>, which is around 30% lower than its current share price. However, price targets have been rising since the \u201cBig Tech\u201d earnings were reported at the end of April. Patient investors should eye any pullback as an opportunity to get in on CIEN.<\/p>\n

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