Networking chip stocks include those that make high-speed chips and switches, as well as technologies that help eliminate bottlenecks and keep AI hardware operating at peak efficiency. Three of the best that are currently riding the AI data center boom are Nvidia (NASDAQ: NVDA), Astera Labs (NASDAQ: ALAB), and Credo Technology Group (NASDAQ: CRDO). Let’s look closer at each one. <\/p>\n
Nvidia is the poster child for any company riding the AI data center boom, catapulting to a market cap of $4.7 trillion and becoming the world’s largest company by valuation. The semiconductor maker’s stock is up 850% in the last five years, and a $10,000 investment in Nvidia stock<\/a> made in July 2021 would be worth more than $95,000 today. <\/p>\n Nvidia made its reputation with GPUs, which are considered the gold standard for complex computing tasks, including training and running AI programs. But now it’s also focusing on data center networking with its next-generation Vera Rubin architecture, which uses NVLink chip-to-chip interconnects to enable central processing units (CPUs) and GPUs to share memory and work more efficiently. <\/p>\n “VeraCPU opens a brand new $200 billion (total addressable market) TAM for Nvidia, a market we have never addressed before. And every major hyperscale and system maker is partnering with us to get it deployed. We have visibility to nearly $20 billion in total CPU revenue this year,” chief financial officer Colette Kress said. <\/p>\n Story Continues <\/p>\n And now Nvidia’s giving investors another reason to buy — management raised the paltry $0.01-per-share quarterly dividend payout by 2,400% to $0.25 per share. The company plans to return 50% of its free cash flow this year to shareholders, including more than $100 billion in share repurchases. <\/p>\n 2. Astera Labs <\/p>\n Astera Labs is a semiconductor company that makes high-speed connectivity products and AI infrastructure to enable servers across an entire AI rack to function as a unified computing platform. Its products transmit high-speed signals between processors, maximize available bandwidth across AI systems, expand memory capacity, and improve the performance and efficiency of networking infrastructure. <\/p>\n Revenue in the first quarter was $308.4 million, up 93% from a year ago, and net income was $80.3 million, up from $31.8 million the same time last year. Earnings per share were $0.44, an improvement from $0.18 in the same period a year ago. <\/p>\n “We believe the opportunity ahead is significant, and we are investing to be a leader for rack-scale AI technologies in close partnership with our customers,” CEO Jitendra Mohan said. <\/p>\n Astera Labs’ stock is up 144% so far this year — performance that has made the company one of the most recent additions to the <\/a>Nasdaq-100<\/a> index<\/a>. <\/p>\n 3. Credo Technology <\/p>\n Credo Technology has been one of my favorite picks-and-shovels AI infrastructure plays. The company makes digital signal processors and Active Electrical Cables (AECs) that use signal processors to move data between chips and switches. <\/p>\n The company’s earnings report for the fiscal fourth quarter of 2026 (ending May 2) showed sales of $437 million, up a whopping 157% from a year ago, and net income of $226.7 million. Earnings were $1.16 per share. <\/p>\n CEO William Brennan said: <\/p>\n Our strategy is centered on delivering connectivity solutions across the full spectrum of AI infrastructure from die-to-die and chip-to-chip connectivity to multirack-scale copper and to row-scale and facilitywide optical interconnect. By extending both inward toward the silicon and outward across the data center, we have positioned Credo to become a foundational network architecture partner for our customers.\u00a0 <\/p>\n Credo stock is up 68% so far this year. <\/p>\n Should you buy stock in Nvidia right now? <\/p>\n Before you buy stock in\u00a0Nvidia, consider this: <\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Nvidia\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $418,761!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,195,804!* <\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 6, 2026. <\/p>\n Patrick Sanders<\/a> has positions in Nvidia. The Motley Fool has positions in and recommends Goldman Sachs Group and Nvidia. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. 1. Nvidia <\/p>\n