Missed Out on the AI Revolution? Here's 1 More Stock to Buy

In March 2025, I recommended three blue-chip companies to buy for the AI Revolution: Monolithic Power Systems Inc. (MPWR), a leader in power management chips for AI devices. Workday Inc. (WDAY), an AI-enhanced cloud-based HR platform. Xometry Inc. (XMTR), a marketplace for AI-powered manufacturing. The trio has since performed exceptionally well, which isn’t surprising given that we’re in the middle of the AI Revolution. Despite a pullback in Workday from a broader “SaaSpocalypse” panic, these three stocks have returned 105% on average, more than doubling the returns of the tech-heavy Nasdaq Composite index. However, this presents a new problem. Much like mining a gold seam dry, these stunning gains mean there’s not much left for latecomers. You either got in early and enjoyed high returns, or came in late when only dry rocks remained. Fortunately, InvestorPlace Senior Analyst Luke Lango believes there’s still one last rich AI seam that’s been overlooked: Physical AI: taking artificial intelligence out of computers and putting it into cars, robots, factories, and other machines operating in the real world. Luke argues that shift is arriving faster than most investors expect, and that it will take four layers to make it work. And in a first-of-its-kind InvestorPlace workshop, he maps them onto Elon Musk’s businesses: Data. X, a real-time feed of human behavior. Compute. Colossus, the supercomputer xAI built in Memphis to train Grok. Connectivity. Starlink, SpaceX’s satellite network. Robots. Optimus, Tesla’s humanoid robot. No conglomerate builds all four by itself. Not even Elon Musk’s empire. That’s Luke’s point: Every layer depends on a network of outside suppliers, the firms he calls “Chosen One” companies during his special broadcast. These make the parts that Musk’s businesses can’t produce themselves. In his presentation, Luke reveals one free pick that feeds these layers, then points to where you can find seven more. Today, I’ve been given special permission to share Credo Technology Group Holding Ltd. (CRDO) – one of these seven picks to give you a glimpse of how essential (and overlooked) Luke’s picks are to the Physical AI Revolution.

Credo Technology runs a straightforward business: It creates high-tech cables known as active electrical cable (AEC) that run inside AI datacenters. You see, most datacenters up to this point have been wired up using an old technology known as direct-attach copper (DAC). That’s just a fancy way of saying “copper wire,” the same tech that elementary school children use when building their first electrical circuit. DACs are cheap and easy to produce. However, copper is not perfect. Some energy is always lost as heat, and electrical signals get distorted and “attenuated” as they pass through the wire. It’s why you sometimes hear power lines buzz, and why professional DJs insist on buying hundred-dollar Monster Cables instead of using the $1 spools from the local hardware store. The issue is even more problematic for AI datacenters, which require far higher precision. Credo’s AEC cables fix this problem by adding tiny digital signal processing (DSP) chips along a copper wire. These little devices do the following: Read the incoming, distorted signal Figure out what the signal was trying to say Retransmit a brand-new, clean signal to the next DSP These active cables work fantastically well. They can handle far more data than traditional copper wires, send information along further distances, and prevent the dreaded “link flap” where a network connection drops because the signal has become so garbled. Why Credo?