Stocks in the artificial intelligence (AI) sector are poised for continued growth, driven by rising demand and critical infrastructure needs. Notably, “pick-and-shovel” plays like ASML Holding and Vertiv are attracting investor interest due to their essential roles in supporting AI advancements. ASML’s extreme ultraviolet lithography machines are integral to semiconductor manufacturing, with the AI chip market projected to grow by 29% through 2030, solidifying ASML’s monopoly and generating recession-resistant revenue from maintenance services. Meanwhile, Vertiv’s infrastructure solutions for data centers are capitalizing on a booming market, with net sales rising 28% and a forecasted continued growth trajectory.

For market professionals, the takeaway is clear: investing in companies like ASML and Vertiv offers exposure to the AI supercycle and the expanding data center market. With ASML’s stock up 85% over the past year and Vertiv’s soaring 225%, these firms represent compelling opportunities for growth-oriented portfolios, despite their premium valuations.

Source: fool.com