Light touch US rules for artificial intelligence could reshape how capital flows into the sector, as investors weigh fewer regulatory hurdles against ongoing national security reviews and local pushback on data centers. With the Trump administration signaling support for rapid AI development and voluntary oversight, some large US technology stocks exposed to these policy shifts may see their risk profiles change, for better or worse. This article walks through 3 stocks from our US Artificial Intelligence and Technology Stocks screener that appear positively exposed to the latest policy signals and is intended to help you assess where this evolving backdrop might matter most in a diversified portfolio.

MaxLinear (MXL)

Overview: MaxLinear is a US-based semiconductor company that designs systems-on-chip used in high-speed networking and communications hardware such as 4G/5G base stations, optical transceivers, Wi-Fi routers, and broadband modems, supplying major equipment makers and module providers around the world.

Operations: MaxLinear generates about US$508.9m in revenue entirely from its Semiconductors segment, with reported sales spread across the United States, Europe and the rest of the world.

Market Cap: US$8.34b

Investors looking at AI infrastructure may pay attention to MaxLinear because its analog and mixed-signal chips are used in the networking, optical and 5G equipment that moves data for advanced AI workloads. The company is currently loss-making, carries a high P/S multiple and has meaningful exposure to maturing broadband markets, which adds execution and valuation risk. The company has introduced new optical, data center and 5G products and has announced partnerships with Edgecore and GCT that indicate deeper engagement with telecom and enterprise customers.

MaxLinear’s role in AI data movement is becoming more interesting as new optical and 5G products arrive, while losses and a rich P/S keep questions alive, so it is worth reading the 1 key reward and 2 important warning signs (1 is major!)

Coherent (COHR)

Overview: Coherent is a US-based photonics and laser specialist that supplies semiconductor lasers, optical transceivers, engineered materials, and laser systems used in AI data centers, high-performance computing, industrial manufacturing, and electronics.

Operations: Coherent reports US$6.6b in segment-level revenue adjustments and generates revenue across China, Japan, Europe, North America, and the rest of the world, with North America contributing about US$4.2b.

Market Cap: US$65.22b

Coherent is attracting attention from AI-focused investors because its lasers and photonic components sit at the heart of high bandwidth networking. Demand from AI data centers, high performance computing and partners like NVIDIA and Apple is feeding into revenue growth, margin improvement and CHIPS Act backed US manufacturing expansion. At the same time, the stock trades on a rich valuation, carries meaningful debt, and has a history of earnings volatility and customer concentration, which introduces real downside risk if AI infrastructure spending slows or pricing pressure from low cost rivals increases. The recent sector pullback has highlighted how quickly sentiment can swing, so it is worth understanding how much of Coherent’s AI optics story is already reflected in expectations before you decide how it fits in your portfolio.

Coherent’s AI optics story is accelerating, yet the stock’s rich valuation and debt load raise real questions about how much upside is already priced in. For this reason, it is worth reviewing the 2 key rewards and 3 important warning signs

Applied Optoelectronics (AAOI)

Overview: Applied Optoelectronics is a Texas based company that designs and manufactures fiber optic modules, lasers and related networking gear that move data at high speed across cloud data centers, cable networks and telecom systems in the US and Asia.

Operations: Applied Optoelectronics generates about US$507m in revenue from Optical Networking Equipments, with most sales coming from China (around US$303.6m), Taiwan (about US$184.3m) and a smaller contribution from the United States (about US$19.1m).

Market Cap: US$9.71b

Investors watching how lighter touch US AI policy might channel more capital into data centers may want to look closely at Applied Optoelectronics because its optical transceivers and fiber products sit at the core of AI data processing. Management is expanding US manufacturing with state support to serve large hyperscale orders. At the same time, the stock is still loss making, carries a high P/S ratio, relies heavily on a few big customers and has seen both dilution and insider selling, so any stumble on execution or AI capex could hit a very volatile share price hard. The key question is whether the combination of strong growth forecasts, a possible move to profitability and this policy tailwind is enough to justify the risk profile investors are signing up for.

Applied Optoelectronics’ rapid AI data center exposure, high P/S and reliance on a few major customers make the next phase crucial. As a result, it is worth reading the 1 key reward and 3 important warning signs (2 are major!)

The three US Artificial Intelligence and Technology Stocks covered here are just a starting point, with the full screener surfacing 34 more companies with equally compelling AI, semiconductor and cloud computing narratives in the US Artificial Intelligence and Technology Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts, policies and business models that matter most to you, so you can focus on the highest conviction opportunities across this wider AI technology universe.

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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.