The AI Investing Pulse

August 28, 2025

In this Week’s Edition:

1. Analysis - Hardware momentum: Top 3 AI infrastructure stocks of the week

2. Stock Ideas - One AI stock for investors focused on real profits

3. News - Nvidia beats top and bottom line but the stock fell after hours

4. Startups - The three types of AI startups that will define the next decade

5. Trends - Global AI market to hit US 1.4 T in four years

6. Other News - How agentic AI is transforming businesses

Hardware Momentum: Top 3 AI Infrastructure Stocks of the Week

This week we are looking at the best-performing AI stack of the past week — Hardware & Infrastructure — and its top three outperforming stocks. Often described as the “Engine & Chassis” of AI, this layer covers semiconductors, GPUs, CPUs, and data centres. Despite some turbulence in markets, it delivered a 4.41% gain, narrowly edging out the Networks & Connectivity Stack at 4.21%.

Nvidia’s latest earnings beat forecasts on both revenue and profit, with guidance also ahead of estimates. Yet its shares slipped as data centre sales came in below expectations and no H20 processors were sold to China. It remains to be seen whether this will impact the Hardware & Infrastructure stack going forward, but for now the top three performers of last week clearly stood out.

1. Nano Labs $NA ( ▲ 2.17% )  

• Sector / Industry: Technology / Semiconductors

• AI Stack Layer: Hardware & Infrastructure (AI in semiconductors for IoT, automotive, and industrial AI)

• Market Cap: $141M

• Weekly Performance: 35.2%

• AIIP Scores: Total Score: 19 / RS: 87

• Ranking Status: Momentum

🧠 What the Company Does
Nano Labs designs and develops cutting-edge semiconductors tailored for AI, high-performance computing, and data centre workloads. Its products target fast-growing applications in the Internet of Things (IoT), automotive systems, and industrial AI solutions.

💡 Why It Stands Out
Nano Labs surged 35.2% over the past week — the highest gain within the Hardware & Infrastructure stack. Its Relative Strength (RS) score of 87 qualifies it as a Momentum Candidate, reflecting strong investor enthusiasm. This aligns with broader investment flows into AI semiconductors, a segment dominated by household names such as Nvidia and Intel. Nano Labs’ niche focus in IoT and automotive AI further underscores the expanding opportunities for application-specific chips.

📊 Technical View
Nano Labs has shown a strong short-term uptrend over the past week, but the stock still trades below both its 50-day and 200-day moving averages. This suggests the recent rally is more of a momentum bounce than a confirmed long-term trend reversal — unless it can break decisively above both MAs.

2. Hut 8 Corp $HUT ( ▲ 1.7% )  

• Sector / Industry: Technology / IT Services / Data Centres & Mining

• AI Stack Layer: Hardware & Infrastructure (Data Centres & AI compute), Networks & Connectivity

• Market Cap: $2.8B

• Weekly Performance: 23.3%

• AIIP Scores: Total Score: 35 / RS: 59

• Ranking Status: Not on Watchlist / Fundamental / Momentum

🧠 What the Company Does
Hut 8 Corp operates data centres and provides compute infrastructure, with a unique focus on crypto mining integrated into AI computation. Its services are positioned as key enablers of digital transformation, supporting both cloud and AI workloads.

💡 Why It Stands Out
With a 23.3% gain last week, Hut 8 was the second-strongest name in the stack. The rally reflects growing demand for high-capacity data centres and AI compute power — trends also driving massive investment from tech giants such as Amazon. Despite strong performance, Hut 8’s current scores mean it does not yet qualify for inclusion in any of our lists.

📊 Technical View
Hut 8 has been in a clear uptrend, but the move now looks extended and the stock is testing a key resistance level. This suggests momentum could pause or consolidate before any further breakout.

3. Celestica Inc. $CLS ( ▲ 1.75% )  

• Sector / Industry: Technology / Electronic Components

• AI Stack Layer: Hardware & Infrastructure (Electronics Manufacturing)

• Market Cap: $23B

• Weekly Performance: 11.4%

• AIIP Scores: Total Score: 87 / RS: 98

• Ranking Status: Watchlist

🧠 What the Company Does
Celestica manufactures and integrates electronic components that form the backbone of AI hardware systems. Its capabilities in electronics manufacturing position it as a critical supplier to the companies driving AI adoption.

💡 Why It Stands Out
Celestica posted an 11.4% return over the past week. Crucially, it is the only company among this week’s top three to qualify for our Watchlist. With a Total Score of 87 and an RS of 98, Celestica demonstrates both robust fundamentals and strong market momentum. Its contribution to electronics manufacturing highlights the indispensable role of suppliers in building the physical infrastructure of AI.

📊 Technical View
Celestica is in an uptrend and has just broken above its 10 and 20-day EMA, reinforcing strong momentum and signalling potential continuation if buying interest persists.

🔍 Final Take

This week’s top-performing stack — Hardware & Infrastructure — gained 4.4%, led by Nano Labs, Hut 8 Corp, and Celestica. Networks & Connectivity followed closely at 4.2%, reinforcing the importance of both the “engine” and the “road” that AI runs on.

While Nvidia’s earnings beat was tempered by weaker data centre sales, it will be important to watch whether this begins to influence the sector more broadly. For now, resilience is the defining theme, with investors continuing to focus on the companies building and powering AI’s foundation.

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_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

_{Methodology & Scores - All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). Total Score combines metrics for Sales and EPS Growth, Financial Quality, and Valuation, to assess overall business strength (out of 100). Relative Strength (RS) Score measures a stock’s price performance relative to the AI universe (173 AI-focused public companies). Ranking Status is assigned based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80.}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS

One AI stock for investors focused on real profits – The Globe and Mail
Investors are increasingly recognising the potential of a specific AI stock poised for substantial profitability.

Polar Capital Technology best and worst AI stocks – Interactive Investor
Polar Capital Technology saw a 3.1% NAV increase amid market volatility, trailing its benchmark. Selective exposure to tech giants led to a 9.1% discount.

Billionaire David Tepper's AI stocks move on Wall Street – The Motley Fool
David Tepper significantly increased stakes in Nvidia, TSMC, and Intel, while selling shares in Meta, Alphabet, and Alibaba, emphasizing a focus on AI hardware over software applications.

AI STOCKS & ETFs NEWS

Nvidia beats top and bottom line but the stock fell after hours – CNBC
Nvidia posted record revenue of $46.7 billion in Q2 2026, but the stock fell in extended trading as data centre revenue came short of expectations.

The rise of Artificial intelligence stocks – Investor’s Business Daily
The rise of investing in AI stocks, detailing their integration into various sectors, market impacts, and key companies, while highlighting the optimism surrounding AI's role in economic growth.

AI disruption fear sparks investor concerns – Yahoo Finance
Investors are increasingly anxious about AI's potential to disrupt industries, with many reassessing their portfolios to manage risks associated with rapid technological advancements and changing market dynamics.

Palantir: is a massive price drop coming soon? – Parameter
Palantir Technologies faces a sharp stock decline, losing over 17% recently due to high valuation concerns and economic uncertainty, despite strong past performance and AI growth. Analysts suggest a potential further price drop ahead.

AI STARTUPS

The three types of AI startups that will define the next decade – Medium
Three types of AI startups are poised to shape the next decade: application builders, efficiency enhancers, and experience creators, all leveraging AI to transform industries and optimize business operations.

The 10 startups in EnergyLab’s latest climate tech accelerator – Startup Daily
EnergyLab has chosen 10 startups for its 2025 Climate Solutions Accelerator, focusing on climate tech innovations including AI and algae.

IBM Ventures invests $500M in Quantum and AI startups to fuel market growth – TipRanks
IBM Ventures is allocating $500 million to support quantum and AI startups, fostering a strong software ecosystem to enhance innovation in these technologies.

AI TRENDS

Global AI market to hit US 1.4 T in four years; energy demand set to double – Indonesia Business Post
The global AI market is expected to reach US $1.4 trillion in four years, while global energy demand is projected to double, driven by expanding AI applications and infrastructure needs.

Gartner: 40% of enterprise apps to feature AI agents by 2026 – Digit
Agentic AI will revolutionise enterprise automation by autonomously handling tasks and decisions, with predictions of resolving 80% of customer service issues by 2029.

OTHER

How agentic AI is transforming businesses – EY
Agentic AI is revolutionising business operations by autonomously managing complex processes, improving efficiency, and reducing costs by 20–30%.

Most dangerous man in tech? Not Elon Musk. Not Sam Altman. Meet Parag Agrawal – Gulf News
Parag Agrawal, former Twitter CEO, is now seen as a significant tech figure. After being dismissed by Elon Musk, he is legally challenging his exit while developing his AI venture, Parallel Web Systems.

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}