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Got $5,000? 2 “Pick-and-Shovel” Growth Stocks to Buy Before the AI Supercycle Peaks

Got ,000? 2 “Pick-and-Shovel” Growth Stocks to Buy Before the AI Supercycle Peaks

Despite recent pullbacks, the rise of stocks in the artificial intelligence (AI) space is unlikely to stop. While these companies are leading the advancement of technology, increasing demand almost guarantees their growth for the foreseeable future.

This potential is particularly evident in the so-called “pickaxe and shovel“Games or stocks that provide tools for artificial intelligence companies. This is attracting increasing interest from investors because it creates the critical infrastructure that enables the advancement of artificial intelligence.

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Knowing this, investors can likely make a profit on a $5,000 investment in this sector, and these AI stocks will likely serve investors well throughout the AI supercycle.

Image source: Getty Images.

Investors often overlook ASML Holding (NASDAQ:ASML) Because of its unique role in artificial intelligence. EUV machines help companies such as: Taiwan Semiconductor Manufacturing (TSMC) produces the most advanced semiconductors.

According to Grand View Research, the AI chip market is expected to grow by 29% by 2030. This will increase demand for ASML’s extreme ultraviolet lithography (EUV) machines. These machines can cost up to $400 million and give ASML an advantage due to their role in chip production. monopoly on the most important machines in technology. Additionally, ASML derives nearly a quarter of its revenue from maintaining these machines, providing the company with a recession-proof revenue source.

Admittedly, ASML has a fairly limited customer base for EUV machines; There is only TSMC. SAMSUNGAnd Intel buy them. Yet it also competes in the deep ultraviolet lithography (DUV) market, which helps foundries produce larger chips. Although it has competitors in this market, it enables it to have a wider customer base.

ASML generated revenues of 33 billion euros ($37 billion) in 2025, an increase of 16% compared to the previous year. Its net income of 9.6 billion euros ($11 billion) rose 27% over the same time period as the company kept cost and expense growth under control. In fact, ASML may experience slower growth in 2026 as the company forecasts revenues of between 34 billion and 39 billion euros.

The stock is up nearly 85% in the past year, and its price-to-earnings (P/E) ratio of 46 is slightly above the five-year average earnings multiple of 41. However, ASML likely commands a premium due to its unique position in the market. Since $2,580 would buy two shares, investors could have an initial position in a company that is vital to artificial intelligence development.

vertiv (NYSE:VRT) It provides infrastructure and support, especially data centers. This includes power supplies, energy storage equipment, and cooling solutions such as in-rack cooling and liquid cooling centers.

According to the MarketsandMarkets research team, the liquid cooling industry will grow at a compound annual growth rate of 32% through 2033. This puts Vertiv at the center of the data center boom, and unsurprisingly, Vertiv’s financial and stock price growth reflects its successes.

In 2025, the company achieved net sales of just over $10 billion, up 28% from 2024. This led to an increase in its cost of sales, but its net income of $1.3 billion in 2025 far exceeded its profit of $496 million in 2024, as the increase in operating expenses was limited and, unlike in 2024, there was no change in the fair value of its warrant obligations.

Vertiv estimates net sales for 2026 will be between $13.25 billion and $13.75 billion; This represents a 28% increase at the midpoint. Amid these developments, the stock is up nearly 225% over the previous year.

It also has a P/E ratio of 71 despite its growing popularity. However, the forward P/E ratio is 40 due to expected growth; This is a level that could still attract buyers given Vertiv’s key role in the data center market.

Under current conditions, a $2,420 investment buys about 10 shares. Considering the construction boom in data centers and Vertiv’s critical role in the industry, paying 71 times earnings may be a fair price for the growth the company is likely to experience in the coming years.

Before buying shares in ASML, consider:

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Will Healy It has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Intel, Taiwan Semiconductor Manufacturing and Vertiv. The Motley Fool has a feature disclosure policy.

Do you have $5,000? 2 Pick-and-Shovel Growth Stocks to Buy Before AI Supercycle Peaks originally published by The Motley Fool