Market styles can ebb and flow, but it’s still underlying fundamentals that ultimately drive business and economic growth. Big tech and the “Mag 7” have dominated in recent months (and years) and they are absolutely not going away. But, if you are looking for some non-mega-cap stock ideas, that will also benefit from the biggest secular trend (call it a mega-trend) in many years (i.e. the cloud and artificial intelligence), here are 10 top non-mega cap names (explained and ranked, with current attractive value propositions highlighted), especially as the megacaps may be about to give back a little, relatively speaking, in that ongoing “ebb and flow” cycle (as you can see in the chart below).
So with that backdrop in mind, let’s get right into the ranking and countdown.
10. Bloom Energy (BE):
Bloom Energy manufactures solid oxide fuel cells for distributed power generation, including for AI data centers seeking reliable energy. Its 19% sales growth next year and focus on alternative power solutions offer exposure to the AI ecosystem. Bloom Energy's partnerships with Oracle, Equinix, and AEP for SOFC deployments address AI data centers' need for on-site, low-carbon power, with projections of 38% on-site generation by 2030. Bloom’s price/sales of 7.5x is actually quite reasonable as compared to the market opportunity for clean energy adoption.
You can view my full report on Bloom Energy here.
9. IREN (IREN):
Also known as Iris Energy, IREN operates data centers originally for bitcoin mining but is now pivoting to high-performance computing for AI workloads. Its 165% current sales growth and 88.2% next-year projection, combined with a low 1.46 consensus rating (“Strong Buy” from Wall Street), make it compelling for AI data center exposure. Iris Energy's procurement of 2.4k Nvidia Blackwell GPUs, bringing its total to 4.3k, positions it to capture growing AI compute demand with fully funded expansions. With a forward P/E of 15x and price/sales of 14x, IREN offers an attractive entry point for growth-oriented investors amid its AI pivot.
8. Nebius Group (NBIS):
Nebius Group is a Europe-based technology company providing AI infrastructure, cloud services, and advanced AI applications including self-driving tech. It’s highly attractive with a staggering 383% current-year sales growth and over 100% projected for next year, plus a focus on global AI builders. Nebius's 625% Q2 revenue growth and plans for over 1GW power capacity by 2026 highlight its ability to outperform traditional cloud giants through AI-specific vertical integration. Trading at a trailing P/S of 65x, Nebius appears expensive but justified by its explosive growth trajectory in the AI sector.
7. Astera Labs (ALAB):
Astera Labs develops connectivity solutions and semiconductors that enable high-speed data transfer in AI systems and data centers. Its 96% current sales growth and 30.8% next-year forecast, alongside a strong 1.47 consensus rating (“Strong Buy” from Wall Street), make it attractive for AI’s need for advanced chip interconnects. Astera's PCIe 6.0 retimer and Scorpio-P PCIe Smart Fabric Switch demonstrate end-to-end interoperability with Nvidia's Blackwell GPU, minimizing risks in rack-scale AI deployments. At a forward P/E of over 90x, Astera commands a high valuation driven by its niche in AI connectivity, but considering its long-term megatrend potential, it’s more reasonably-priced than meets the eye.
You can view my full report on Astera Labs here.
The Top 6
The top 6 stocks are reserved for members only, and you can access them here. The list includes as attractive mix of non-mega-cap stocks set to benefit dramatically from the ongoing AI megatrend.
The Bottom Line:
Investing in the AI megatrend is not for everyone, and frankly it’s probably not a good idea for anyone to “bet the farm” on AI and nothing else. However, it is an important marketwide theme that will likely drive economic growth for many years to come. And considering the “Mag 7” megacap names (Microsoft, Nvidia, Meta, et al) have been so dominant, investing a few non-mega-cap ideas (such as those highlighted in this report) can make a lot of sense for a lot of people.
At the very least, hopefully you are able to identify a few top ideas in this report for further consideration. You can view all the holdings in my prudently-concentrated, long-term “Disciplined Growth Portfolio” here.