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The AI Investing Pulse

October 30th, 2025

In this Week’s Edition:

1. Analysis - Inside AI’s Infrastructure Race: 3 AI Growth Stocks to Watch

2. Stock Ideas - Which Voice AI Stock Is The Better Pick Right Now?

3. News - Earnings - Meta Tumbles, Microsoft Slides And Alphabet Rises

4. Startups - Fireworks AI Closes $250M At $4B Valuation

5. Trends - Global Quantum Dots Market To Reach $23.13B By 2033

6. Other News - Top 10 Agentic AI Threats And How To Defend Against Them

7. Video - Fundstrat - Tom Lee: Why The Bull Market Isn’t Over Yet

Inside AI’s Infrastructure Race: 3 AI Growth Stocks to Watch

In the fast-paced world of AI investing, identifying companies that are not only utilising AI but are building its physical foundation is key to capturing the next phase of market acceleration.

This week, we turn our attention to the foundational infrastructure layer, the underlying systems that make advanced AI models possible. Our latest data (as of 29 October) shows that the Core AI Stack continues to drive the strongest returns across the market, both this week and year-to-date (YTD).

These three layers form the core infrastructure powering AI’s growth, the high-speed networks that connect data, the physical compute engines driving model training, and the energy systems keeping it all operational.

This week’s feature highlights one standout stock from each of these top-performing sectors: Credo Technology in Networks & Connectivity, Vertiv Holdings in Power & Cooling, Nebius Group in Hardware & Infrastructure.

Each demonstrates exceptional growth metrics, strong momentum, and exposure to AI’s most investable trends, making them key watchlist names for the next phase of the AI infrastructure race.

1. Credo Technology Group $CRDO ( ▲ 12.6% )  

• Sector / Industry: Technology / Semiconductors

• AI Stack Layer: Networks & Connectivity (The Roads)

• Market Cap: $29.6B

• Fundamental Score: 100 / 100

• Relative Strength (RS): 98 / 100

• Performance: +13.6% (1W), +155.2% (YTD)

• Ranking Status: ✔️ Watchlist

🧠 What the Company Does
Credo operates in one of the most critical layers of AI infrastructure, the “digital roads” that move data at lightning speed between systems. Its technology powers high-speed connectivity for AI, cloud, and enterprise data centres through solutions like Active Electrical Cables (AECs) and Digital Signal Processors (DSPs).

💡 Why It Stands Out
Credo holds a perfect Total and Growth Score of 100, with a near-flawless RS score of 98, signalling powerful market conviction. The company has exceeded consensus earnings by an average of 27% over the past four quarters. As data centre spending accelerates, Credo’s solutions are becoming indispensable to AI infrastructure scalability.

2. Vertiv Holdings $VRT ( ▼ 0.46% )  

• Sector / Industry: Industrials / Electrical Equipment

• AI Stack Layer: Power & Cooling (The Cooling System & Battery)

• Market Cap: $76.1B

• Fundamental Score: 88 / 100

• Relative Strength (RS): 78 / 100

• Performance: +8.8% (1W), +75.6% (YTD)

• Ranking Status: 📊 Fundamental

🧠 What the Company Does
Vertiv provides power and cooling systems that keep AI data centres running efficiently, managing the extreme energy and heat demands of modern AI workloads. Its systems are the lifeblood that allows GPUs to operate at peak performance.

💡 Why It Stands Out
With a 100 Growth Score and Total Score of 88, Vertiv sits just below Watchlist status, but momentum is building fast. The firm’s $7.9B backlog and collaboration with NVIDIA on prefabricated AI factories underscore its strategic importance. This stock aligns perfectly with the recurring “AI Energy Crunch” theme that has consistently driven high engagement in prior newsletters.

3. Nebius Group $NBIS ( ▲ 5.35% )  

• Sector / Industry: Technology / Cloud Infrastructure

• AI Stack Layer: Hardware & Infrastructure (Engine & Chassis)

• Market Cap: $31.4B

• Fundamental Score: 63 / 100

• Relative Strength (RS): 99 / 100

• Performance: +17.8% (1W), +351.6% (YTD)

• Ranking Status: 📈 Momentum

🧠 What the Company Does
Nebius delivers the computing backbone of the AI ecosystem, high-performance cloud and compute infrastructure designed specifically for LLM training and generative AI workloads. Its platform powers some of the most computationally demanding AI applications on the market.

💡 Why It Stands Out
With RS 99, Nebius is one of the strongest momentum names in our entire AI universe. It boasts an extraordinary 396% forecast revenue growth and achieved 385% YoY revenue growth in its last reported quarter. While its fundamentals (Total Score 63) are weighed down by negative EPS and therefore a PEG valuation metric of 0, the market’s enthusiasm is unmistakable.

🔍 Final Take

Credo, Vertiv, and Nebius illustrate how AI’s growth is being fuelled by its physical foundation. These companies represent the fastest-moving layers of the AI stack this week and YTD, from ultra-fast networks to intelligent cooling and powerful compute infrastructure.

While their trajectories are promising, it’s worth noting that markets are currently at all-time highs and appear somewhat extended. Vertiv is trading at its own all-time high, while Nebius and Credo are both approaching record levels. This positioning reflects strong market enthusiasm but also suggests that near-term pullbacks or consolidation are possible as investors reassess valuations in an overheated environment.

^{Disclaimer
This content is provided for informational and educational purposes only and does not constitute investment advice, personal recommendations, or an invitation or inducement to engage in any investment activity.
AI Investing Pulse (AIIP) is a publisher of financial research and commentary and is not authorised or registered as an investment adviser, portfolio manager, or securities dealer with any regulatory authority in the United Kingdom (FCA), United States (SEC or any state regulator), or Canada (any provincial securities commission or CIRO).
The information presented is derived from publicly available sources believed to be reliable but should not be solely relied upon for making investment decisions. Always consult a qualified, regulated financial professional before acting on any information. Past performance is not a guide to future results.}

^{About AIIP Index: The AIIP Index tracks 173 AI-focused public companies across the full AI stack and serves as our benchmark for sector performance. All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence) and track the last 7 calendar days for weekly performance. The AIIP Total Score (0–100) combines metrics for sales and EPS growth, financial quality, and valuation to assess overall business strength. AIIP Relative Strength (RS) Score measures a stock’s price performance relative to the AIIP universe. Ranking status is based on score combinations:
Fundamental = Total Score ≥ 70 and RS < 80, Momentum = RS ≥ 80 and Total Score < 70, Watchlist = Total Score ≥ 70 and RS ≥ 80.}

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TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS

Which Voice AI Stock Is The Better Pick Right Now? – The Globe and Mail

3 AI Infrastructure Stocks Solving The Power Crisis – The Motley Fool

11 Must-Watch AI Stocks On Wall Street – Insider Monkey

AI STOCKS & ETFs NEWS

Meta Stock Tumbles, Microsoft Slides And Alphabet Rises As Big Tech Earnings Pour In – Yahoo Finance
Major tech firms released earnings with Microsoft surpassing expectations on strong cloud growth, Alphabet benefiting from AI-related deals, and Meta facing a stock decline following a tax-related charge.

The Future Of The AI Stocks’ Performance – Programming Insider
AI stocks are set for continued momentum in 2025, supported by strong earnings, expanding use cases, and sustained investor confidence despite short-term volatility.

AI Rally 2025: Boom Or Bubble? What Investors Need to Know – Syfe Magazine
Is the AI investment surge a bubble or a sustainable boom? This analysis recommends diversification to balance exposure and mitigate market risks.

AI STARTUPS

Fireworks AI Closes $250M At $4B Valuation To Redefine Enterprise AI Infrastructure – Tech Funding News
Founded by former PyTorch engineers, Fireworks AI raised $250 million to build enterprise-grade infrastructure enabling the next generation of generative AI applications.

Sublime Security Raises $150M In Series C Funding As Industry-First AI Agents Accelerate Growth – StreetInsider
Sublime Security secured $150 million to advance its AI-powered email defence platform, enhancing automated threat response and adaptive protection.

AI TRENDS

Global Quantum Dots Market To Reach $23.13B By 2033 – AI Journ
Driven by advancements in automotive and sensor technologies, the global quantum dots market is projected to grow to $23.13 billion by 2033.

8 Ways Agentic AI Will Transform IT Operations – CIO
Agentic AI empowers IT systems with autonomous capabilities for proactive maintenance, faster decision-making, and seamless system integration.

OTHER

Top 10 Agentic AI Threats And How To Defend Against Them – Manufacturing Today India
A detailed look at cybersecurity challenges posed by agentic AI systems and practical steps for enterprises to secure AI-driven operations.

44 New Artificial Intelligence Statistics (October 2025) – Exploding Topics
The global AI market has reached $391 billion, with major adoption in healthcare and enterprise sectors. Daily AI usage now exceeds 35%.

🎥 VIDEO

Fundstrat - Tom Lee: Why The Bull Market Isn’t Over Yet - 2025 Market Outlook

_{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}