Prediction: These 2 Stocks Will Be Worth More Than Palantir 5 Years From Now
Under-the-radar AI suppliers Celestica and Marvell are posting explosive growth, and their valuations still have plenty of room to run.
Overview
Palantir (NASDAQ: PLTR) has become one of the biggest names in artificial intelligence (AI), but the boom is still in its early innings, and there's plenty of time for new leaders to rise. Over the next five years, the biggest winners may be the companies quietly building the infrastructure that makes the AI revolution possible. Celestica (NYSE: CLS) and Marvell Technology (NASDAQ: MRVL) fit that description, thanks to their cutting-edge tech.
If the physical end of the AI boom continues to shift toward entire AI factories, Celestica could be sitting in one of the most important parts of the supply chain. That's because the company is increasingly involved in designing and manufacturing the data center infrastructure that connects AI compute.
Details
That transformation is already showing up in the business. In the second quarter, Celestica's revenue jumped 62% year over year, and management raised its full-year outlook. It also said it expects its growth to accelerate in 2027, and that adjusted earnings growth would outpace revenue growth. Management pointed to new program wins and improving customer forecasts as drivers of that upbeat guidance.
Source
Originally published at www.fool.com.