3 Quiet AI Revenue Accelerators With Sales Growth Outpacing Peers

Key Points

• Fabrinet, MACOM Technology Solutions, and Credo Technology Group are three overlooked semiconductor firms positioned to benefit from the growing AI supply chain.
• All three companies posted strong recent revenue growth, with Fabrinet, MACOM, and Credo reporting sales increases of 39%, 22.5%, and 157% year-over-year, respectively.
• Analysts remain largely bullish on all three stocks, citing attractive valuations and Buy ratings.

The AI boom is reshaping the market well beyond its most obvious beneficiaries—tech, energy, and utilities firms—and some of the best ways to benefit from it have largely gone overlooked. Even within a prominent AI industry like semiconductors, some companies have unique opportunities to serve as pick-and-shovel investments due to their role within the complex AI supply chain.

When considering possible AI revenue accelerators, it helps to look for firms that already have some sales growth momentum. Three companies—Fabrinet NYSE: FN, MACOM Technology Solutions NASDAQ: MTSI, and Credo Technology Group Inc. NASDAQ: CRDO—are all in this category and boast strong analyst support, making them candidates for an increasingly prominent role in the AI industry.

Important Optical Packaging Firm With an Attractive Valuation

Fabrinet is a precision optical packaging company responsible for many of the key components vital to hyperscalers and data centers, such as transceivers and silicon photonics components. This means that the company is positioning itself at a major bottleneck in the broader AI supply chain and as a firm likely to play a role in a growing share of AI system deployments for the foreseeable future.

This has already been demonstrated by the company's strong sales, including record revenue of $1.2 billion in the latest quarter, a year-over-year (YOY) increase of 39%. Revenue came in ahead of expectations, and non-GAAP earnings per share (EPS) of $3.72 beat guidance as well.

Going forward, an essential step for Fabrinet will be successfully building its capacity to allow for further scaling. From new capacity buildouts in recent quarters to investments in existing semiconductor fabrication facilities and the acquisition of new sites for development, the company has an aggressive, multi-pronged plan to generate several billion dollars in additional revenue capacity, although the exact timeline remains to be seen.

In the meantime, Fabrinet shows one of the most compelling valuations across the AI industry, with a price-to-sales (P/S) ratio of about 5. With six Buy ratings and four Holds, as well as 32% in upside potential forecast, analysts are also bullish on this important but easy-to-miss AI player.

Massive Data Center Sales Growth Is Just One Part of MACOM's Appeal

MACOM is also in the semiconductor space, but it specializes in specific analog, microwave, millimeter-wave, and photonics tools and services. Data center applications are a primary driver of revenue growth—sales increased by 22.5% YOY in the latest reported quarter to solidly beat analyst predictions, while book-to-bill reached a record 1.5. Management has even gone so far as to raise its base-case growth rate for data center revenue from 35%-40% to more than 60%, a signal of impressive optimism that this will continue through at least the end of the fiscal year in September.

At least two other important factors help to boost MACOM as a prospective investment. First, the firm has experienced noteworthy margin expansion in recent quarters, thanks to its excellent operational execution. With fiscal 2026 adjusted gross margin expected to be in the range of 59%-60%, this positive trajectory seems likely to continue.

Second, the company has other growth drivers outside of AI—crucially, industrial and defense sales have also climbed strongly.

It's no surprise, then, that analysts have given MTSI stock 11 Buy ratings compared to just three Holds. Although upside potential is minimal at just 10%, there is an unmistakable excitement across Wall Street surrounding MACOM's AI potential.

Major Growth in Multiple Categories, But CRDO Could Still Be Undervalued

Known for its zero-flap connectivity solutions, Credo could play a transformational role in keeping AI optical connections running smoothly and quickly. This company has been on a massive growth streak in recent months—shares are up more than 85% year to date, quarterly revenue ballooned by 157% YOY in the last quarter to a record $437 million, and non-GAAP net income of nearly $227 million was also an all-time high.

Optical revenue has been driving Credo's growth, and for the current fiscal year (ending in May 2027), sales in this area in particular are expected to exceed $600 million.

Even still, the company's price/earnings-to-growth (PEG) ratio, a measure of relative value based on expected earnings growth, is competitive at 1.1. This may be why an impressive 17 analysts have assigned Buy ratings to CRDO stock, compared to just two Holds.