Why Are AI Infrastructure Stocks Under Pressure?
AI infrastructure stocks have faced considerable selling pressure in recent weeks, as concerns over data center expansion, rising borrowing costs, and regulatory uncertainty have weighed on investor sentiment. According to Bloomberg, hedge funds sold global technology shares during the week ending November 6 at a pace approaching the highest recorded in Goldman Sachs’ data since 2016.
Much of the uncertainty stems from the U.S. midterm elections, which raised concerns about potential restrictions on data center construction. Reuters reported on November 5 that the Nasdaq Composite plunged 5.5%, while UBS analysts estimated that nearly 30% of anticipated U.S. data center capacity additions in 2028 could be at risk from potential construction pauses. The selloff also prompted Wall Street to reassess opportunities across the technology sector, as discussed in our recent coverage of 10 Stocks Analysts Just Upgraded.
CoreWeave’s Rally Offers Relief, but Concerns Remain
Against this backdrop, the prominent AI cloud infrastructure provider offered some relief following its latest earnings announcement. On November 11, the company raised its annual revenue forecast and eased financing concerns by indicating that cash flows from existing contracts would cover its debt repayments. The developments also lifted other major AI infrastructure stocks.
However, the recovery proved short-lived as a leadership crisis at a major AI chipmaker introduced fresh uncertainty across the sector. On November 12, shares of the cloud infrastructure provider fell 9.1% after gaining more than 27% in the previous session, while the chipmaker declined 8.2% following its CEO’s resignation amid an ongoing scandal.
Beyond these market swings, financing remains a concern. Reuters reported on November 12 that approximately 70% of record U.S. convertible bond issuance in 2026 was AI-linked, highlighting the industry’s reliance on capital markets. Meanwhile, the selloff has renewed scrutiny of elevated technology valuations, a concern explored in our recent analysis of 10 High P/E Stocks Under the 200-Day SMA.
With that in mind, we examine 10 AI infrastructure stocks to watch, as investors reassess growth prospects, financing risks, and valuations.
Our Methodology
To compile our list of the 10 AI infrastructure stocks to watch after CoreWeave’s earnings, we reviewed financial-media coverage identifying companies that could benefit from CoreWeave’s growth or broader AI infrastructure spending following its latest results.
We required each stock to be supported by at least two distinct media publishers, counting syndicated copies of the same article only once. Our selection includes direct commercial partners and companies benefiting from broader demand for AI computing, servers, chips, and storage.
From this pool, we selected the 10 stocks with the highest upside potential based on analysts’ median price targets and ranked them in ascending order of that potential.
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10. NVIDIA Corporation (NASDAQ:NVDA)
Upside Potential: 72.70%
NVIDIA Corporation (NASDAQ:NVDA) makes our list with 72.70% analyst upside, as CoreWeave’s expansion drives demand for its GPUs, networking, and AI systems. Shares gained 2.92% on November 11 as CoreWeave’s results helped restore confidence in AI infrastructure spending.
NVIDIA Corporation has a direct commercial connection: CoreWeave is deploying its Vera Rubin platform. Fiscal second-quarter data-center revenue increased 117% to $89 billion, while total revenue reached $96.2 billion. However, rising memory costs are pressuring margins, showing how strong demand can benefit component suppliers while squeezing system providers.
At approximately 18.6 times estimated fiscal 2027 adjusted earnings, NVIDIA Corporation offers substantial growth at a lower multiple than its recent history. That discount also reflects risks beyond chip demand. Our coverage of why analysts have become more cautious about NVIDIA’s financing commitments examines its exposure to companies building infrastructure around its products.
NVIDIA Corporation announced on November 12 that Jensen Huang had resigned and CFO Colette Kress would serve as interim CEO. This introduces leadership uncertainty immediately after the sector’s rally. On the same day, before the leadership announcement, RBC retained an Outperform rating that day but reduced its target to $230 from $330, arguing that near-term fundamentals remained supported by demand and an established product roadmap. The investment case depends on maintaining execution through the transition while ensuring customer financing produces sustainable demand.
9. Marvell Technology, Inc. (NASDAQ:MRVL)
Upside Potential: 79.50%
Marvell Technology, Inc. (NASDAQ:MRVL) ranks in this list with 79.50% analyst upside, as CoreWeave’s growth reinforces demand for custom AI chips and networking components connecting large computing clusters. Shares gained 9.33% on November 11 during the CoreWeave-led rebound.
Marvell Technology, Inc. generated $2.17 billion in fiscal second-quarter data-center revenue, up 46% year-over-year. Increasing cluster sizes require faster connections within and between facilities, supporting its optical interconnect and switching businesses. Management subsequently raised its fiscal 2028 revenue outlook to approximately $20 billion.
The proposed Lumentum acquisition would broaden that opportunity by combining electronic and optical technologies. Marvell Technology, Inc. announced the all-stock agreement at an implied enterprise value of $115 billion. The strategic fit is credible, but regulatory approval, integration, and potential customer conflicts complicate the payoff. Morgan Stanley highlighted those trade-offs on November 3, noting the benefits of jointly designing lasers and electronics while retaining an Equal Weight rating.
Marvell Technology, Inc. trades at approximately 40 times estimated fiscal 2027 adjusted earnings, falling to roughly 23 times fiscal 2028 estimates. Our analysis of whether its $20 billion revenue target justifies the valuation premium explains why growth must arrive on schedule. The lower future multiple depends on a substantial earnings increase; it does not make the shares inexpensive today. Investors should watch custom-chip production ramps and optical demand alongside the acquisition’s progress.
8. Oracle Corporation (NYSE:ORCL)
Upside Potential: 86.90%
Oracle Corporation (NYSE:ORCL) is discussed here due to 86.90% analyst upside, as CoreWeave’s results reinforced demand for the AI computing capacity offered through Oracle Cloud Infrastructure. Shares rose approximately 8.8% on November 11 as confidence returned to the sector.
Oracle Corporation is already translating that demand into revenue. Fiscal first-quarter cloud infrastructure sales increased 121% to $7.4 billion, helping total revenue grow 30% to $19.3 billion. Remaining performance obligations reached $664 billion, although converting those commitments into revenue requires substantial infrastructure investment.
The funding structure therefore matters as much as the backlog. Customer prepayments, customer-supplied hardware, and vendor financing reduce upfront cash requirements. Management expects positive free cash flow in the second half of fiscal 2028. Stephens supported this improving funding outlook on November 2, upgrading Oracle Corporation to Overweight and raising its target to $213 from $185. The company subsequently completed $10 billion each in stock and debt financing, illustrating the remaining cost to shareholders.
At approximately 15.8 times estimated fiscal 2027 adjusted earnings, Oracle Corporation trades below its five-year average forward multiple of roughly 22 times. Our coverage of why Oracle made the list of cheap stocks heading into 2027 examines the funding improvements behind that valuation case. The discount offers potential if contracted demand produces cash on schedule; further construction delays or financing needs would weaken that argument.
7. Micron Technology, Inc. (NASDAQ:MU)
Upside Potential: 89.20%
Micron Technology, Inc. (NASDAQ:MU) is one of the stocks to watch after CoreWeave’s rally with 89.20% analyst upside, as CoreWeave’s growth reinforces demand for the memory and storage required by AI servers. Shares gained 11.9% on November 11 as CoreWeave’s results lifted memory stocks.
Micron Technology, Inc. supplies high-bandwidth memory for AI accelerators, conventional DRAM, and NAND storage. Fiscal fourth-quarter revenue reached $54.23 billion, up from $41.46 billion sequentially, while adjusted earnings increased to $33.42 per share. Management guided the following quarter’s revenue to approximately $61.5 billion.
Supply constraints give Micron Technology, Inc. an opportunity to sustain pricing. Management said more than 75% of fiscal 2027 shipments were already committed. Expanding HBM production also consumes manufacturing capacity that could otherwise produce conventional DRAM, limiting how quickly supply can respond. Needham’s October 1 Buy rating and $1,650 target support this argument, citing persistent shortages and higher pricing in new customer agreements.
Micron Technology, Inc. trades at approximately 4.6 times estimated fiscal 2027 adjusted earnings. Our analysis of why record memory margins still command a low earnings multiple explores the key question: how much of today’s profitability can survive the next downturn? Long-term agreements improve visibility, but they cannot eliminate competition or future supply additions. The valuation becomes compelling if those contracts preserve earnings through a weaker pricing environment, rather than simply extending the current boom.
6. Core Scientific, Inc. (NASDAQ:CORZ)
Upside Potential: 92.20%
Core Scientific, Inc. (NASDAQ:CORZ) is among the stocks to watch after CoreWeave’s rally with 92.20% analyst upside, as stronger CoreWeave demand supports its contracted AI hosting business. Shares rose 11.0% on November 11 as CoreWeave’s results lifted infrastructure stocks.
Core Scientific, Inc. provides powered data-center space rather than selling GPU computing itself. By its November 5 earnings call, it was billing CoreWeave for 485 megawatts, with approximately 100 megawatts undergoing commissioning. Third-quarter colocation revenue increased nearly 60% sequentially to $215.4 million, demonstrating that completed facilities are becoming revenue-producing assets.
Core Scientific, Inc. also has 530 megawatts contracted with AMD, adding another customer as the CoreWeave buildout nears completion. Management says its equity contribution for that initial AMD capacity is already invested, but project financing remains necessary. B. Riley retained a Buy rating on November 9, citing faster CoreWeave execution and lower costs, while reducing its target to $27 from $31.
Our coverage of why Core Scientific appeared among Nasdaq stocks at 52-week lows examines the tension between rising colocation revenue and construction spending. Core Scientific, Inc. trades at approximately 28.4 times forward EBITDA on an enterprise-value basis, leaving meaningful delivery expectations in the valuation. Short interest reached 25.63% of the float as of October 30. Completing contracted capacity and securing affordable financing offer concrete ways to address that skepticism; additional reservations alone do not.
5. Nebius Group N.V. (NASDAQ:NBIS)
Upside Potential: 93.90%
Nebius Group N.V. (NASDAQ:NBIS) joins our list with 93.90% analyst upside, as CoreWeave’s results strengthened confidence in demand for the GPU cloud capacity it also provides. Shares gained 15.4% on November 11, ahead of its own earnings release.
Nebius Group N.V. subsequently reported third-quarter revenue growth of 571% to $980.8 million. However, approximately $325 million came from nonrecurring revenue associated with deploying its architecture and platform on partner-funded infrastructure. That contribution makes headline growth less representative of recurring cloud activity.
Capacity delays prompted Nebius Group N.V. to narrow its 2026 revenue outlook toward the low end of its previous $3.0–$3.4 billion range, while raising planned capital spending to approximately $27 billion. Shares fell 17% on November 12 (as of the time of writing), underscoring investors’ sensitivity to execution.
Nebius Group N.V.’s management preliminary 2027 revenue forecast of $12–$13 billion illustrates the opportunity if deployment improves. Nevertheless, the business is valued at approximately 13.3 times forward sales on an enterprise-value basis. Short interest reached 21.57% of the float as of October 30, reflecting substantial skepticism.
Citi retained a Buy rating with a reduced $265 target on November 4, supporting the demand argument, although that assessment preceded earnings. Our analysis of whether Nebius Group N.V. can turn pricing power into profits examines the central challenge: strong GPU demand supports pricing, but construction costs, financing, and depreciation determine what shareholders ultimately earn.
4. Western Digital Corporation (NASDAQ:WDC)
Upside Potential: 98.70%
Western Digital Corporation (NASDAQ:WDC) ranks in this list with 98.70% analyst upside, as CoreWeave’s expansion reinforces demand for storage infrastructure supporting AI computing. Its high-capacity hard drives serve cloud operators, and shares gained 8.3% on November 11 as CoreWeave’s results lifted the sector.
Western Digital Corporation is already converting storage demand into earnings. Cloud customers generated approximately 88% of fiscal first-quarter revenue. Total sales increased 55% to $4.38 billion, adjusted earnings rose 161% to $4.64 per share, and free cash flow reached $1.38 billion.
Pricing is central to this improvement. Exabyte shipments increased 22% year-over-year, while revenue per terabyte rose 28%. That provides two sources of growth, although sustained profitability requires pricing to hold as storage capacity expands. Evercore retained an Outperform rating and $575 target on Western Digital Corporation, highlighting pricing strength despite removing the stock from its tactical list.
Western Digital Corporation trades at approximately 12.7 times estimated fiscal 2027 adjusted earnings as of November 12, 2026. That looks reasonable if profits prove durable. Our analysis of whether Western Digital Corporation is a good investment at today’s price explores the risk of mistaking unusually favorable storage pricing for permanent earnings strength.
The next test is its technology transition. Initial HAMR shipments are expected in the first half of 2027, with capital spending running above its long-term range during the transition. Higher drive capacity could improve economics, but qualification progress and cash generation remain important measures of execution.
3. Sandisk Corporation (NASDAQ:SNDK)
Upside Potential: 104.60%
Sandisk Corporation (NASDAQ:SNDK) is included in this list with 104.60% analyst upside, as CoreWeave’s growth reinforces demand for NAND flash storage across AI infrastructure. Shares rose 13.7% on November 11, supported by the broader AI rally and renewed analyst confidence.
Sandisk Corporation’s opportunity extends beyond storing training data. As AI applications process longer conversations and more complex tasks, flash can retain information that is too costly to keep entirely in faster memory. This creates additional demand alongside conventional data-center storage.
Fiscal first-quarter results demonstrate the shift. Data-center revenue increased 61% sequentially to $4.8 billion, outpacing overall revenue growth of 23%. Total sales reached $11.03 billion, with an adjusted gross margin of 85.1%. Management expects second-quarter revenue of $12.2–$12.6 billion.
Sandisk Corporation trades at approximately 4.3 times estimated fiscal 2027 adjusted earnings. The multiple looks inexpensive, but its appeal depends on profits surviving beyond unusually favorable NAND pricing.
Long-term customer agreements and disciplined supply could improve that durability. Our coverage of why Evercore sees more than 100% upside in Sandisk Corporation examines this argument. Analyst Amit Daryanani retained an Outperform rating and $2,500 pre-split target, citing business-model changes that investors may be overlooking.
Sandisk Corporation also returned $5 billion through quarterly buybacks, providing a tangible shareholder benefit from current profitability. Longer term, customer commitments must translate into earnings that remain resilient when storage pricing weakens.
2. IREN Limited (NASDAQ:IREN)
Upside Potential: 163.90%
IREN Limited (NASDAQ:IREN) is here on our list with 163.90% analyst upside, as CoreWeave’s results strengthened confidence in demand for GPU cloud services. Its shares gained 5.6% on November 11, joining the broader rebound in AI infrastructure stocks.
IREN Limited is shifting from Bitcoin mining toward AI computing, using its power and data-center infrastructure to host GPU workloads. Fiscal first-quarter AI cloud revenue increased 182% sequentially to $200 million, accounting for most of its $228 million total revenue. Its backlog reached $20.3 billion, approximately two-thirds backed by investment-grade counterparties. Our coverage of how the AI transition helped narrow quarterly losses and spark a 20% rebound examines this changing revenue mix.
Execution remains the immediate test. IREN Limited moved the operational target for more than $4 billion in contracted annualized revenue to January–February 2027 following Microsoft-requested network changes and supplier delays. The customer-requested changes carry no financial penalties, but later deployment still postpones revenue.
Contract pricing provides a counterweight. Management reported renewing older H100 capacity at twice its original price. JPMorgan retained an Overweight rating on November 9, citing improving contract pricing, although it reduced its target to $55 from $65.
IREN Limited also faces considerable skepticism: shares sold short increased to 94.68 million from 81.65 million over the prior month, reaching 23.23% of the float as of October 30. Meeting delivery milestones and funding expansion remain essential to turning contracted demand into shareholder returns.
1. Applied Digital Corporation (NASDAQ:APLD)
Upside Potential: 290.80%
Applied Digital Corporation (NASDAQ:APLD) is one of the stocks to watch after CoreWeave’s rally with 290.80% analyst upside, as CoreWeave’s growth supports demand for the AI data centers it develops and leases. Shares gained 7.4% on November 11 following CoreWeave’s results.
Applied Digital Corporation has fully funded the 400-megawatt CoreWeave campus at Polaris Forge 1. Its first two buildings provide 250 megawatts of ready-for-service capacity, while the third remains under development. This makes CoreWeave’s ability to finance and utilize additional computing capacity directly relevant to the business.
Applied Digital Corporation reported fiscal first-quarter revenue of $341.9 million, up 322% year-over-year. However, tenant fit-out services contributed $183.5 million, compared with $65.8 million in base rent. Recurring rental income therefore provides a better measure of the operating portfolio’s progress than headline revenue growth alone.
Our analysis of whether Applied Digital can afford its next 600 megawatts examines the funding challenge behind its expansion. Applied Digital Corporation ended the quarter with approximately $6.4 billion in debt against $2.9 billion in unrestricted cash, and additional campuses still require financing. B. Riley retained a Buy rating on October 30 but reduced its target to $51 from $75 as borrowing costs rose.
At approximately 33.7 times forward EBITDA on an enterprise-value basis, the stock already anticipates substantial operating growth. The opportunity rests on delivering leased buildings and expanding rental income while controlling financing costs, rather than simply accumulating a larger development pipeline.
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