AI is reshaping how data centers are built and powered, and chip designers like Advanced Micro Devices (AMD) sit right at the heart of that shift. With AMD’s data center revenue now more than half of its sales and management targeting strong multi year growth, investors are looking again at the broader ecosystem that feeds into AI heavy server farms. This article highlights 3 stocks from an AI driven data center expansion screener that appear positively exposed to the same forces influencing AMD, helping you decide which opportunities might fit your watchlist and which risks deserve a closer look.

Monolithic Power Systems (MPWR)

Overview: Monolithic Power Systems designs and sells power management chips that help convert and control electricity inside AI servers, data centers, cars, industrial equipment, and everyday electronics, aiming to make these systems smaller, cooler, and more efficient.

Operations: Monolithic Power Systems generates about US$3.0b in semiconductor revenue, with a large share coming from China (US$1.6b), followed by Taiwan (US$615.4m), South Korea (US$270.2m), Southeast Asia (US$156.2m), Europe (US$124.3m), the United States (US$111.3m), Japan (US$87.5m), and other regions (US$0.5m).

Market Cap: US$66.5b

Investors watching AMD’s AI surge may look at Monolithic Power Systems because its power chips sit inside many of the same high performance servers and “physical AI” devices, from data center racks to robotics. Management has been expanding manufacturing capacity and moving from selling chips to offering full power solutions. The flip side is that margins have compressed, the stock trades on a rich P/E multiple, and there has been recent insider selling, so expectations are already high. For anyone weighing whether that premium is justified by AI data center momentum and broader electrification trends, MPWR may merit a closer look.

Monolithic Power Systems’ premium P/E and expanding role inside AI servers raise a bigger question: are expectations already pricing in the next leg of growth, or missing something hidden in the 2 key rewards and 2 important warning signs

SiTime (SITM)

Overview: SiTime designs and sells silicon based timing solutions, such as oscillators, clock chips and synchronization software, that keep electronic systems precisely in sync across AI data centers, communications networks, automotive electronics and a wide range of connected devices.

Operations: SiTime generates about US$379.9m in revenue from the design, development and sale of silicon timing systems solutions.

Market Cap: US$16.2b

Investors watching AMD’s AI data center momentum may find SiTime interesting because its precision timing chips sit behind the scenes, helping GPUs and networks run in lockstep as capacity expands. Revenue is growing quickly in AI focused data center and communications segments, supported by new products such as the Elite 2 Super TCXO and the acquisition of Renesas’ timing business. However, the company is still loss making and trades on a rich valuation with a high P/S multiple and recent insider selling. That mix of high growth expectations, index inclusion and fresh funding via a US$200m credit facility can create opportunity, but it also leaves little room for disappointment on execution or AI infrastructure demand.

SiTime’s AI timing story is accelerating, but the rich P/S multiple and recent insider selling raise bigger questions. The analysis report for SiTime only starts to answer these before the plot twists.

Credo Technology Group Holding (CRDO)

Overview: Credo Technology Group Holding supplies high speed connectivity chips, cables and optical modules that move data efficiently inside AI focused data centers and other compute intensive systems, covering both copper based links and silicon photonics for longer reach connections.

Operations: Credo generates about US$1.3b in semiconductor revenue, with around US$768.1m from the United States, US$378.2m from Hong Kong, US$80.9m from Mainland China, US$22.7m from Taiwan and US$85.2m from other regions.

Market Cap: US$42.3b

Investors interested in how AMD’s AI data center build out spills into the broader supply chain may find Credo Technology Group Holding hard to ignore. The company sits at the intersection of copper and optical connectivity for AI workloads, with earnings growth far outpacing both the US market and the wider semiconductor sector, expanding margins and a high 22.9% ROE. At the same time, a rich 82.2x P/E, concentrated exposure to large customers and recent insider selling mean expectations are already elevated and short term volatility can be sharp. If you want to understand why some analysts now see Credo as a core AI connectivity player, and what might challenge that view, the real story sits beneath those headline growth numbers.

Credo’s rapid earnings and 22.9% ROE story is eye catching, but the rich 82.2x P/E and customer concentration leave a lot unsaid. The 2 key rewards and 2 important warning signs could be the missing twist in that AI connectivity thesis.

The three stocks in this article are only the starting point, as the full AI data center expansion screener surfaced 35 more companies with equally compelling stories buried in the AI-Driven Data Center Expansion screener. Use Simply Wall St to identify and analyze the specific catalysts, financial traits and AI driven narratives that matter to you, so you can focus on the highest conviction opportunities in this theme.

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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.