Nvidia (NASDAQ: NVDA) and Palantir Technologies (NYSE: PLTR) have dominated the AI investing conversation — and for good reason. Nvidia’s cutting-edge GPUs are the beating heart of AI data centers, and Palantir’s powerful software is turning that raw power into real-world solutions. Both have delivered blockbuster returns over the past few years.
But the AI landscape is evolving fast. As the technology matures, smaller, more nimble companies are stepping in with specialized offerings that could lead the next wave of AI-driven growth. These rising stars might not dethrone the current giants in terms of size or reach anytime soon, but their performance potential could be too good to ignore.
Let’s take a closer look at three next-gen AI stocks that deserve a spot on your radar — if not in your portfolio.
1. CoreWeave
The Cloud Powerhouse Built for AI’s Next Frontier
Most companies diving into AI don’t build their own massive data centers. Instead, they rent computing power from specialized cloud providers. That’s where CoreWeave (NASDAQ: CRWV) comes in.
CoreWeave isn’t just another cloud company. It’s purpose-built from the ground up to serve AI workloads — and that makes a huge difference. Its systems are designed around the latest and most powerful chips, like Nvidia’s new GB200 Blackwell Superchip. This processor can train AI models up to four times faster and run inference tasks 30 times quicker than older platforms. That’s not just a speed bump — it’s a leap into the next generation of AI performance.
CoreWeave’s high-profile client list already includes the likes of OpenAI, Microsoft, and Meta Platforms. And yet, many investors are only now hearing about the company. That’s largely because CoreWeave only went public in March — right when market attention was fixated on macro noise like tariff battles.
Though the company isn’t profitable just yet, growth has been explosive. First-quarter revenue surged 420% year over year to nearly $1 billion. Analysts are calling for continued triple-digit sales growth through at least next year, with profitability potentially arriving by 2027. In short: CoreWeave is still in the early innings of what could be a very big game.
2. Astera Labs
The Quiet Hardware Innovator Powering AI’s Infrastructure
At first glance, Astera Labs (NASDAQ: ALAB) might seem like a carbon copy of CoreWeave — another player in the AI infrastructure race. But a closer look reveals a very different story.
While CoreWeave offers a full-service AI cloud platform, Astera focuses on the nuts and bolts — literally. The company designs and sells the high-performance connectivity components that keep AI data centers running smoothly. Its products include everything from PCIe switches to digital signal processors and memory controllers, all engineered specifically for the data-heavy demands of AI.
One standout innovation is Astera’s Aries line, which enables data to travel between AI chips at blistering speeds — up to 64 gigatransfers per second — using thin, power-efficient cables. That means more computing power, smaller equipment, and lower operating costs.
The industry is clearly buying in. Revenue is expected to surge nearly 80% this year, helping Astera swing from losses into profitability. And analysts think this could be just the beginning for this fast-moving semiconductor specialist.
3. Penguin Solutions
Small Cap, Big Potential
You might not recognize the name Penguin Solutions (NASDAQ: PENG), but this company has been quietly building its presence in the AI space for years. Previously known as SMART Global Holdings, the company rebranded in 2024 — but that’s not the only reason it’s flying under the radar.
With a market cap of just $1.3 billion, Penguin is a true small-cap play. But don’t let the size fool you. Analysts expect the company to grow revenue 17% this year, thanks in large part to increasing demand for its AI infrastructure solutions.
So what exactly does Penguin do? It occupies a niche between companies like Astera and CoreWeave, offering a blend of hardware, software, and services. This includes fault-tolerant memory modules, custom-built data center solutions, and software for managing complex AI computing clusters.
What really sets Penguin apart, though, is its profitability. Unlike many of its high-growth AI peers, Penguin is already earning money. Shares currently trade at just 15 times this year’s expected earnings of $1.62 per share — with next year’s estimate climbing to $1.89. That’s a compelling valuation for a company delivering consistent growth and earnings.
Just keep in mind that as a small-cap stock, Penguin can be volatile. Make sure it fits your risk tolerance before diving in.
The Bottom Line
Nvidia and Palantir may have already delivered their biggest wins — but that doesn’t mean the AI opportunity is over. Far from it. As demand for smarter, faster, and more efficient AI solutions grows, companies like CoreWeave, Astera Labs, and Penguin Solutions could become the new leaders of the pack.
Smart investors should take note now — before the rest of the market catches on.