The Chip Stock Finding Green at the End of the Ethernet

A connectivity chipmaker is catching a lucky bounce from data centers, IoT, and smarter networks.

Author

Noah Zelvis
March 17, 2026

Not every St. Patrick’s Day winner wears green. Some just help move more data with less power and fewer headaches.

This edition leans into the quieter corners of tech: cloud for scrappy builders, app ads that still know how to sell, edge vision chips that help machines see, and one connectivity name that keeps benefiting whenever the digital world needs faster links and steadier signals.

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AI Hardware

3M Wants To Be The Connectivity Layer Inside Every AI Data Center

3M Company (NYSE: MMM) plans to expand U.S. manufacturing capacity for its Expanded Beam Optical interconnect technology, a high-speed optical connectivity solution designed for AI data centers.

The expansion will more than double current production by adding additional equipment and expanding production space.

The EBO technology has been commercially available and in large-scale production since late 2024.

It delivers dust-resistant optical connections built for high-density computing environments where AI clusters demand faster data transfer and greater bandwidth.

Hyperscalers Are Driving The Demand

3M said the investment is aimed at meeting demand from hyperscale cloud operators, optical networking equipment manufacturers, and cable assembly partners.

As AI infrastructure scales at an unprecedented pace, data centers need connectivity solutions that can be deployed quickly and perform reliably at a massive scale.

The expansion reflects a broader shift in AI buildouts where the bottleneck is increasingly moving from compute to connectivity.

Getting data between processors fast enough is becoming just as critical as the processors themselves.

3M Is Quietly Building An AI Infrastructure Business

The optical expansion sits inside 3M's broader data center solutions portfolio, which covers connectivity, power distribution, and materials challenges tied to AI infrastructure buildouts.

It is not a flashy AI play, but it targets a layer of the stack that every data center needs.

3M is not competing with chipmakers or cloud providers.

It is selling the physical infrastructure that connects everything—and right now, that market is growing as fast as the AI demand that powers it.

Audio Tech

Apple Quietly Drops AirPods Max 2 After A Six-Year Wait

Apple (NASDAQ: AAPL) surprise-launched the AirPods Max 2 on Monday, replacing the original that debuted back in 2020.

The new headphones run on Apple's audio-specific H2 chip. Active noise cancellation is up to 1.5x more effective than the first generation.

Adaptive Audio adjusts ANC and Transparency levels automatically based on surroundings.

Transparency mode itself has been rebuilt with a new signal-processing algorithm optimized for the H2 chip. Apple says it now sounds significantly more natural.

Packed With Features Beyond Music

The Max 2 includes Live Translation for in-person conversations across languages and voice isolation, prioritizing the wearer's voice during calls.

Camera Remote lets users trigger the shutter on an iPhone or iPad by pressing the Digital Crown.

Apple is also positioning the built-in mic for podcasters and creators. Audio capture improves vocal texture and yields higher-quality recordings.

Sound quality overall benefits from a new high-dynamic-range amplifier and improved Spatial Audio with better bass and instrument localization.

Apple Keeps Expanding What Headphones Can Do

The AirPods Max 2 are available for preorder on March 25 in five colors, launching in over 30 countries next month.

Lossless audio at 24-bit 48 kHz is supported over USB-C, and a loud sound reduction feature protects hearing without distorting playback.

Apple is turning its premium audio product into a multi-purpose wearable.

The Max 2 is not just about better sound — it is about making headphones do more than anyone expected.

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Enterprise Software

Oracle Wants Money Movement Built Into Every Business App

Oracle (NYSE: ORCL) has signed a multiyear strategic agreement with embedded finance provider Alviere to integrate regulated payment services directly into its industry application suites.

The deal covers card issuance, domestic and international payments, automated pay-by-bank workflows, and treasury functionality.

Instead of routing transactions through separate financial platforms, Oracle customers will be able to move money securely within the workflows they already run.

Oracle is also joining a new investment round in Alviere alongside existing backers.

Designed For Regulated, Global-Scale Operations

Alviere specializes in enterprise-grade financial technology built for large businesses operating in heavily regulated environments.

The partnership pairs that capability with Oracle's global client footprint and deep industry application reach.

The integration is aimed at a broad range of industries where compliance, security, and scalability are non-negotiable.

Oracle is not building a fintech product from scratch — it is embedding one from a partner purpose-built for the complexity its clients deal with daily.

Oracle Keeps Adding Layers To Its Enterprise Stack

This follows a pattern of Oracle expanding the capabilities of its applications without forcing customers onto third-party platforms.

Every feature embedded directly into the workflow tightens the relationship between Oracle and its enterprise base.

Payments are one of the last major enterprise functions still handled outside core business applications.

Oracle is betting that pulling them inside the stack makes its platform harder to leave and more valuable to stay on.

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Recent Tech Movers

DigitalOcean (NYSE: DOCN)

Cloud for the Rest of Us
DigitalOcean is not trying to outmuscle Amazon or Microsoft.

It is trying to be the easiest cloud for developers and smaller businesses that just want to build something without needing an army of consultants.

That simplicity is still working.

In its latest results, DigitalOcean reported fourth-quarter 2025 revenue of $242 million, up 18% year over year, and said annual run-rate revenue finished the quarter at $970 million, also up 18%.

The company guided first-quarter 2026 revenue to $249 million to $250 million and full-year 2026 revenue to $1.075 billion to $1.105 billion. 

The bull case is that smaller customers still want cloud tools, AI infrastructure, and hosting that does not feel like a labyrinth.

The catch is that the market wants growth and margin discipline at the same time, which is a rude but common request.

AppLovin (NASDAQ: APP)

The Ad Engine Still Finding Wallets
AppLovin remains one of the louder names in the ad-tech world because when mobile ad spend is working, this stock can move like it drank too much cold brew.

It was reported that AppLovin’s fourth-quarter net income grew 84% to $1.10 billion, and the company forecast first-quarter sales of $1.75 billion to $1.78 billion, above estimates at the time.

Also to note, there’s still an SEC probe involving AppLovin active at this point.  

That leaves APP in a classic high-beta setup: strong business momentum, real scrutiny, and a stock that can overshoot both directions.

Builders usually want patience here. Traders usually want a helmet.

Ambarella (NASDAQ: AMBA)

Teaching Cameras to Think
Ambarella sits in one of the more interesting lanes in tech right now: edge AI vision.

It is described as a developer of low-power system-on-a-chip semiconductors and software for edge AI applications, including person detection, object classification, analytics, and real-time image processing.

The company reported roughly $100.9 million in quarterly revenue in late February, and third-party summaries of its latest results pointed to growing momentum in IoT, automotive, and robotics. 

That is the appeal in plain English.

If more devices need to see the world and respond locally, not by shipping everything back to a cloud server, the chipmakers helping them do that keep getting more relevant.

AMBA is still a smaller, more volatile story, but it is in a lane with a lot of runway.

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The Long Pick

Semtech (NASDAQ: SMTC)

Why This Name Keeps Showing Up in the Right Conversations
Semtech is not the kind of stock that steals the whole parade, but it keeps showing up wherever smarter networks, data-center links, and connected systems matter.

The company is a provider of high-performance semiconductors, IoT systems, and cloud connectivity services, with a Signal Integrity segment focused on optical and copper data communications products for infrastructure and industrial applications. 

That matters because the market keeps chasing AI at the loudest layer, while a lot of the actual money gets made in the parts that move signals, connect systems, and keep the whole thing from turning into packet soup.

Semtech just reported fiscal fourth-quarter 2026 results, and they were solid.

The company posted record net sales of $274.4 million, up 3% sequentially and 9% year over year. It also generated $61.5 million in operating cash flow and $59.1 million in free cash flow. 

The broader story is even cleaner.

The company has now put together multiple quarters of growth, and recent reporting pointed to rising demand for its data-center and networking products.

Semtech also announced the acquisition of HieFo, adding indium phosphide optoelectronic devices including lasers and gain chips to deepen its data-center portfolio. 

Scorecard You Can Use

  • Connectivity is still king: AI and cloud growth still need more bandwidth and cleaner signal paths. Semtech’s portfolio is built around exactly that. 

  • It is not a one-trick pony: The company spans semiconductors, IoT systems, and cloud connectivity rather than relying on one narrow product category. 

  • Recent numbers were real: Q4 net sales hit a record $274.4 million with strong cash generation. 

Why The Market Cares

Investors are starting to look beyond the flashiest AI names and ask who benefits when more devices, more networks, and more data-center links have to work harder.

Semtech fits that question well.

If the digital economy keeps demanding faster, denser, lower-power communications, the companies making those connections cleaner can keep compounding without needing to be the loudest name in the room.

This is an inference based on Semtech’s business mix and recent results. 

What Could Spook It

Semis are still cyclical. If customers slow orders or capex mood turns sour, the stock can wobble.

There is also competitive pressure everywhere in connectivity and data-center components. This is an inference based on the semiconductor industry structure and Semtech’s markets. 

What To Watch Next

The clean tells are data-center momentum, progress integrating HieFo, and whether the company keeps converting revenue growth into margin and cash-flow strength.

If those line up, the market may keep rewarding the story. This is an inference grounded in Semtech’s reported Q4 results and acquisition announcement. 

Actionable Take

Builders can treat this as a quieter infrastructure pick tied to connectivity demand rather than pure headline AI.

Pullbacks may be more attractive than chasing spikes after a strong quarter.

Traders should remember this is still a semiconductor stock, so it can swing faster than the underlying narrative changes.

Bottom Line:
Semtech may not be the pot of gold itself, but it sells some of the pipes, links, and parts that help the whole digital economy keep flowing.

On a market full of louder names, that can be a pretty lucky place to sit.

Everything Else

  • 🚗 Nvidia is piling deeper into self-driving deals with Hyundai, BYD, Nissan, and others, because apparently every car now wants a robot brain and a software stack. 

  • 🎬 Apple bought MotionVFX tools to beef up Final Cut Pro, which is a nice reminder that creator subscriptions are still worth chasing. 

  • ☁️ Meta just locked in a massive Nebius capacity deal worth up to $27 billion, because AI infrastructure checks are now written with extra zeroes. 

  • 🪓 Meta shares jumped after a report said it may consider 20% layoffs to offset huge AI spending, which is one way to make “efficiency” sound expensive. 

  • 🧬 Roche is ramping Nvidia chip capacity with more than 2,000 Blackwell GPUs, because drug discovery has officially entered its GPU era.

That's our coverage for today; thanks for reading! Reply to this email with feedback or any tech stocks you want me to check out.

Best Regards,
—Noah Zelvis
Tech Stock Insider