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News  ›  Investing.com

Forget LLMs: Buy These 3 AI ‘Pick and Shovel’ Plays Instead

Investing.com Logo Investing.com By Andrew Rocco, Zacks Investment Research
Forget LLMs: Buy These 3 AI ‘Pick and Shovel’ Plays Instead

Rather than betting on large language model leaders, investors should consider AI infrastructure 'pick and shovel' stocks. CoreWeave, Nebius Group, and Astera Labs offer more predictable returns by providing essential computing infrastructure, GPUs, and data center solutions to major tech companies building AI systems.

Insights
JPMpM   neutral

Mentioned as a client of Semrush, no direct impact from the acquisition


CRWV   positive

Company provides specialized GPU cloud computing for AI workloads with strong Nvidia relationships. Recent debt financing of $2.6B and $25B capital commitments address previous investor concerns. IPO lockup expiry headwinds have subsided.