2 AI Infrastructure Stocks Nobody is Talking About (AEIS, DBRG)

While Nvidia dominates AI infrastructure, Advanced Energy Industries (AEIS) and DigitalBridge Group (DBRG) are highlighted as under-the-radar plays providing essential support for the AI ecosystem. AEIS, specializing in precision power conversion for data centers and semiconductors, projects 27% annual earnings growth, while DBRG, a digital infrastructure investment firm focused on hyperscale data centers, forecasts 26% growth. Both stocks, rated Zacks #2 (Buy), exhibit strong technical momentum and attractive valuations with PEG ratios below 1, offering investors diversification and potential upside within the expanding AI buildout.

Analysis

Advanced Energy Industries (AEIS) and DigitalBridge Group (DBRG) are positioned as critical, second-derivative beneficiaries of the artificial intelligence infrastructure buildout, offering exposure beyond headline names like Nvidia. AEIS, which provides essential precision power conversion systems for semiconductors and data centers, is supported by strong fundamentals, including a Zacks Rank #2 (Buy) and projections for 27% annual earnings growth. Despite its stock reaching new all-time highs, its valuation remains attractive when adjusted for growth, indicated by a PEG ratio below 1 and a forward P/E of 25.7x. Similarly, DigitalBridge Group, an investment firm financing core digital infrastructure such as hyperscale data centers and fiber networks, is also rated a Zacks Rank #2 (Buy) with earnings forecast to grow 26% annually. DBRG trades at a more modest 19.2x forward earnings and also features a PEG ratio below 1, suggesting it is undervalued relative to its growth prospects. While AEIS exhibits strong price momentum, DBRG appears to be in the early stages of a technical turnaround after a multi-year downtrend, offering a different entry profile for investors.

Key Decisions for Investors

• Investors seeking to diversify their AI exposure beyond semiconductor giants should evaluate positions in AEIS and DBRG as they provide essential, non-GPU infrastructure for the AI ecosystem.
• With projected earnings growth rates over 25% and PEG ratios below 1, both companies present compelling growth-at-a-reasonable-price (GARP) opportunities in a high-growth sector.
• Consider the distinct technical setups: AEIS is a momentum-based play at all-time highs, suitable for trend-following strategies, whereas DBRG's recent bottoming action may appeal to value or turnaround-focused investors.
• Monitor earnings revisions for both companies, as the current bullish thesis is heavily supported by analyst expectations for robust, sustained growth in their respective end markets.