Unlock AI’s Hidden Gems: 3 Must-Buy Stocks Fueling the Data Center Surge

The AI boom is driving substantial demand for physical infrastructure beyond chips, creating significant opportunities for essential suppliers like Amphenol and Vertiv. Amphenol, a dominant provider of high-speed interconnects with a 33% market share in AI/data centers, reported record Q1 2025 results and is projected to reach $26.9 billion in revenue by 2028, underscoring its critical role in AI infrastructure buildouts. Concurrently, Vertiv, which supplies vital power and cooling solutions for energy-intensive AI data centers, has repeatedly raised its full-year outlook due to surging AI orders, achieving record Q3 sales and backlog. Both companies represent attractive long-term plays for investors seeking exposure to the foundational components of the AI revolution, with their stocks demonstrating strong year-to-date performance.

Analysis

The artificial intelligence (AI) boom is driving significant demand for physical infrastructure beyond semiconductors, creating substantial opportunities for specialized suppliers. Companies like Amphenol (APH) and Vertiv (VRT) are critical beneficiaries, providing essential interconnects, power, and cooling solutions for scaling AI operations. Data center spending is projected to surge through 2028, underscoring the long-term tailwinds for these infrastructure providers.

Amphenol, a dominant player with a 33% market share in AI and data center interconnects, reported record Q1 2025 results, driven by AI-related demand and design wins. Analysts project its revenue to reach $26.9 billion by 2028, implying a robust 12.7% annual growth rate. Despite its stock doubling year-to-date, its forward P/E of approximately 36 appears reasonable given its diversified portfolio and insulation from direct chip volatility.

Vertiv is equally indispensable, providing crucial power and cooling solutions for energy-intensive AI data centers, including advanced liquid cooling systems. The company has repeatedly raised its full-year outlook, citing surging AI data center orders, which led to record third-quarter sales and backlog. Its stock has risen 71% this year, reflecting strong market recognition of its role in enabling gigawatt-scale AI demands.

Key Decisions for Investors

• Consider long-term positions in AI infrastructure providers like Amphenol (APH) and Vertiv (VRT) given their critical roles and strong growth projections.
• Monitor Amphenol's continued market share gains and acquisition strategy, as well as Vertiv's backlog and guidance revisions, for sustained AI-driven performance.
• Evaluate these companies as diversified plays on AI growth, offering exposure to the underlying infrastructure buildout without direct semiconductor volatility.