Three AI-focused stocks have outperformed Nvidia in 2024, driven by demand for power management and data center solutions.
Monolithic Power Systems (NASDAQ: MPWR) and two other AI infrastructure stocks have delivered returns exceeding Nvidia’s 11% year-to-date gain. These companies benefit from rising demand for power management and cooling solutions in AI data centers, positioning them for further growth in 2027.
Monolithic Power Systems reported a 26.1% year-over-year revenue increase in Q1, with net income growing at a slightly faster pace. Enterprise data, its largest segment, nearly doubled sales, while the communications segment also saw strong performance. The company’s focus on AI chip and server power solutions has driven its 40% rally this year.
The stocks’ outperformance reflects broader trends in AI infrastructure, where specialized hardware and power management are critical. Analysts suggest these companies could sustain momentum as data center expansion accelerates.