The artificial intelligence (AI) sector has seen growth, with various companies detailing their roles in areas such as AI software, hardware, and infrastructure. This overview examines the contributions and financial metrics of several companies, including Alphabet, Micron Technology, Nvidia, Palantir Technologies, Axcelis Technologies, Bitfarms, and Western Digital, as they navigate the evolving AI market.
AI Software and Cloud Services
Palantir Technologies
Palantir, primarily focused on AI software, reported a 63% year-over-year revenue increase in Q3 2025. The company's stock demonstrated approximately 140% growth after a 340% rise in the preceding year. Palantir anticipates a 12.5% quarter-over-quarter revenue increase for Q4. Its forward price-to-earnings (P/E) multiple stands at 181.8, and its price-to-earnings-to-growth (PEG) ratio is 2.8. Palantir CEO Alex Karp stated in November that the company's development is in its early stages.
Alphabet
Alphabet, the parent company of Google, participates across multiple AI sectors. Google Cloud is identified as the fastest-growing among the three major cloud service providers and is used by numerous AI "unicorns" (start-ups valued at $1 billion or more). In the large language model (LLM) domain, Google Gemini 3.0 Pro holds the top position on LMArena's Leaderboard, with Gemini 3.0 Flash ranked second. Gemini has been integrated into Google's search engine, Workspace, Chrome browser, Antigravity platform, and other applications.
AI Hardware and Components
Nvidia
Nvidia is a provider of GPUs, which are widely utilized for AI processing. The company's revenue increased by 62% year-over-year in Q3 2025, with a 22% quarter-over-quarter growth during the same period. Nvidia's guidance for Q4 projects a 14% quarter-over-quarter revenue increase.
Micron Technology
Micron Technology is one of three global suppliers of high-bandwidth memory (HBM) and the sole U.S.-based manufacturer of this component. HBM is necessary for the function of powerful AI chips, which support AI software. Micron's forward P/E multiple is 9.2, and its PEG ratio is 0.5.
Western Digital
Western Digital, a data storage provider, supplies memory solutions for AI infrastructure. AI workloads require high bandwidth memory for rapid data access, and an adequate supply of this memory is considered critical for AI chip performance, representing a potential bottleneck in AI infrastructure expansion. The company reported 27% year-over-year revenue growth in its fiscal 2026 first quarter. Chief Financial Officer Kris Sennesael projected data center demand to be a primary driver of revenue growth in fiscal Q2 and subsequent periods.
Axcelis Technologies
Axcelis Technologies manufactures ion implantation systems used in semiconductor fabrication, including for AI chips and components for electric vehicles (EVs). The company's stock experienced growth from 2021 to 2023 but saw a decline afterward. Revenue and net income have decreased year-over-year in recent quarters. Management stated in its third-quarter report that strong demand for AI chips is anticipated to be a positive factor. Axcelis is merging with Veeco Instruments, a transaction expected to conclude in the second half of 2026, with the aim of expanding market reach and strengthening its position as a semiconductor equipment provider. The company currently trades at a P/E ratio of 22.
Alphabet (TPUs)
Alphabet also participates in the AI chip market with its Tensor Processing Units (TPUs). Apple has used these TPUs for training generative AI models within Apple Intelligence, and Anthropic has utilized them to manage costs. Meta Platforms is reportedly discussing TPU utilization with Google for its data centers.
AI Infrastructure Development
Bitfarms
Bitfarms, primarily a cryptocurrency mining company, is expanding its operations to include AI infrastructure development. The company is constructing AI data centers designed to provide energy and infrastructure for technology firms. Capital from the sale of its Paraguay site has been allocated to support expansion in North America, where it has a 2.1-gigawatt project pipeline. These projects are expected to facilitate multiyear contracts. Bitfarms' current market capitalization is below $2 billion, while peers IREN and Cipher Mining have market capitalizations of $13 billion and $7 billion, respectively.