The recent Nvidia and SK Hynix agreement for high bandwidth memory and massive data center capacity has pushed AI hardware and infrastructure back into the spotlight, and it could reshape how investors think about the companies that supply the core building blocks for advanced computing. This kind of long term supply deal and planned 2 gigawatt data center buildout signal that the demand story around AI infrastructure is not just a short term headline. In this article, you will see 3 stocks from our AI Hardware and Infrastructure screener that appear closely tied to these trends, and how this news might affect them.

Monolithic Power Systems (MPWR)

Overview: Monolithic Power Systems designs semiconductor based power management chips that sit inside servers, AI systems, autos, and everyday electronics, helping convert and control electricity efficiently so those devices can run reliably. Its products power critical components in cloud data centers, memory and storage, automotive electronics, communications gear, and industrial equipment across major global markets.

Operations: Monolithic Power Systems generates all of its US$3.0b revenue from semiconductors, with sales spread globally and a large share coming from China at about US$1.6b, followed by Taiwan at about US$615.4m and South Korea at about US$270.2m.

Market Cap: US$65.5b

Investors watching the Nvidia and SK Hynix deal may find Monolithic Power Systems hard to ignore, because its power solutions sit right in the middle of the AI data center buildout that requires ever higher wattage and more complex power management. The company is already talking about content rich AI platforms, higher power requirements, and capacity expanded to US$6b of annual revenue, while analysts model double digit revenue and earnings growth ahead. At the same time, the stock trades on a rich P/E multiple, margins have compressed from last year, and there has been recent insider selling, which raises questions about how much optimism is already priced in. What many investors may be considering is how these AI centric design wins and risks could interact with valuation over the next few years.

Accelerating AI demand could be masking how tightly Monolithic Power Systems is priced today, and the real story sits in how its AI data center exposure, margins and valuation fit together in the analysis report for Monolithic Power Systems

FormFactor (FORM)

Overview: FormFactor makes the probe cards and testing systems that chipmakers use to check whether advanced processors, memory chips, and AI focused devices work properly while they are still on the silicon wafer, before expensive packaging and assembly. Its tools sit in the middle of the semiconductor manufacturing flow for everything from high bandwidth memory and GPUs to mobile processors and networking chips.

Operations: FormFactor generates about US$699.6m from Probe Cards and US$140.1m from Systems, with sales spread globally across major chip manufacturing hubs in South Korea, Taiwan, the United States, China and other regions.

Market Cap: US$8.8b

FormFactor sits in a sensitive spot of the AI supply chain, as record DRAM and high bandwidth memory probe card revenue show how AI fueled chip production is feeding directly into its order book. Management highlights increased test complexity and higher spending per dollar of HBM output. At the same time, the stock carries a very high P/E multiple, recent returns have been strong, margins and earnings still depend on product mix, and there has been insider selling and a one off loss. These factors point to execution and valuation risk. For investors, a key consideration is whether the Nvidia and SK Hynix capacity plans and broader AI demand can support FormFactor’s position without stretching its fundamentals too far.

FormFactor’s accelerating HBM exposure and rich P/E suggest the story is only half told, and the full picture of execution, margins and valuation sits inside the 2 key rewards and 3 important warning signs

Nova (NVMI)

Overview: Nova designs and sells metrology and process control systems that measure critical dimensions, film thickness, materials and chemistry on semiconductor wafers so chipmakers can keep yields high as devices become more complex across logic, memory and advanced packaging. Its tools are embedded at key steps like lithography, etch, deposition and chemical mechanical planarization, serving major foundries, integrated device manufacturers and equipment suppliers around the world.

Operations: Nova generates about US$902.5m in revenue from semiconductor equipment and services.

Market Cap: US$14.5b

Nova sits at the heart of the AI buildout because every new wave of HBM and larger AI processors adds manufacturing steps, tighter tolerances and more wafers, which all increase demand for metrology. Management highlights AI, DRAM and advanced packaging as key growth engines, supported by a new Asian facility aimed at adding capacity and lowering costs. Recent tool of record wins suggest deeper customer integration. At the same time, the stock trades on high expectations, relies heavily on a few advanced node customers and faces tariff and geopolitical risks that could pressure margins. The real question is how this mix of strong AI exposure, rich valuation and concentration risk balances out over the next phase of the cycle.

Nova’s AI metrology story is accelerating. However, rich expectations and customer concentration raise big questions about how durable it really is, and the full tension shows through in the 4 key rewards and 1 important warning sign

The three companies highlighted here are just a starting sample. The full Artificial Intelligence (AI) Hardware and Infrastructure screener surfaces 29 more stocks with equally compelling AI hardware and infrastructure stories that you have not seen yet. Use Simply Wall St to identify, analyze and filter for the specific catalysts, financial traits and narratives that matter most so you can focus on the highest conviction ideas for your watchlist.

Take Control of Your Investment Journey

If FormFactor or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Before They Fly

Some of the strongest breakouts start quietly, while interest is still building and prices have not yet caught the crowd. Scan these fresh ideas before momentum gets away and consider them while they are still early.

• Spot companies with solid cash flows and quality balance sheets using the curated 49 high quality undervalued stocks so you are not caught chasing stretched valuations after the move starts.
• Track high conviction founders still calling the shots through the hand picked 18 top founder-led companies and see which businesses are building momentum while they are under the radar for now.
• Explore structural spending on smarter infrastructure by checking the focused 35 power grid technology and infrastructure stocks and see which stocks may react fastest as capital rotates into critical upgrades.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.