AI infrastructure sits at the crossroads of global themes investors are already watching: mixed but resilient trade, tight central bank policy, and ongoing energy and commodity shifts. While growth expectations are steady and inflation signals are uneven, one area with clear real world demand is the physical backbone that lets AI run at scale. This screener focuses on companies turning AI spending into data centers, power, cooling, and connectivity, with an emphasis on revenue and cash generation. In this article, you will see three of the most notable stocks from the AI Infrastructure Stocks screener.
Lumentum Holdings (LITE)
Overview: Lumentum Holdings is a photonics manufacturer that supplies lasers, optical chips, modules, and subsystems to cloud data center and AI infrastructure providers, telecom networks, and industrial customers in areas like semiconductor and electric vehicle manufacturing.
Operations: Lumentum generates revenue across a globally diversified footprint, with key contributions from the United States (US$523.1m), Thailand (US$494.4m), Hong Kong (US$460.7m), Mexico (US$318m), Other Asia Pacific (US$256.1m), Europe, the Middle East and Africa (US$178.7m), Japan (US$96.2m), Other Americas (US$18.8m), and segment adjustments of US$142.4m.
Market Cap: US$54.4b
Lumentum sits at the heart of the AI data center buildout, supplying the high speed optics and lasers that chipmakers and cloud providers need. Revenue and earnings are forecast to grow rapidly at 53.8% and 79.08% a year. Analysts see meaningful upside with tightly clustered targets, and recent news highlights stronger guidance, index inclusion, and Nvidia linked demand. The stock still screens as significantly undervalued on Simply Wall St’s fair value model. At the same time, a rich P/E, volatile share price, insider selling, and reliance on external funding mean this is not a low risk story. The real question is whether Lumentum can turn this AI driven momentum into durable cash flow and returns before the cycle turns.
AI fueled growth projections, a rich P/E, and that “undervalued” tag make Lumentum Holdings hard to ignore, but the real story sits inside the 4 key rewards and 2 important warning signs
Advanced Energy Industries (AEIS)
Overview: Advanced Energy Industries provides precision power conversion, measurement, and control systems that sit inside semiconductor tools, AI ready data centers, industrial production lines, and medical equipment, helping customers manage power and temperature with high accuracy.
Operations: Advanced Energy Industries generates about US$1.9b in revenue from Power Electronics Conversion Products, with additional geographic exposure across the United States (US$539.7m), Mexico (US$344.1m), and other regions (US$673m), alongside segment adjustments of US$348.4m.
Market Cap: US$10.9b
Advanced Energy Industries is tightly linked to AI data center and advanced semiconductor spending, with earnings forecast to grow far faster than the broader US market and recent year on year earnings growth well above 100%. The company is pushing into higher margin platforms, reporting rising profit margins and strong order books, while returning cash through dividends and buybacks. At the same time, a high P/E, heavy reliance on a small group of large customers, tariff exposure, and funding entirely through higher risk borrowing mean the story is not one sided. The key question for investors is whether this AI and semiconductor power specialist can keep converting design wins and backlog into durable, high quality earnings as conditions evolve.
Advanced Energy Industries is riding AI fueled power demand and pushing into higher margin platforms, yet its premium P/E and customer concentration leave some key questions open. Get the full story in the analysis report for Advanced Energy Industries
Vertiv Holdings Co (VRT)
Overview: Vertiv Holdings Co provides the power, cooling, and thermal management equipment that keeps AI heavy data centers and communication networks running, from liquid cooled racks for high power GPUs to uninterruptible power supplies and integrated infrastructure. Its products and services support everything from artificial intelligence and online gaming to e commerce and banking across more than 100 countries.
Operations: Vertiv generates most of its revenue in the Americas with US$7.0b, alongside US$2.4b from Asia Pacific and US$2.3b from Europe, the Middle East and Africa, partially offset by US$973.8m of intersegment sales.
Market Cap: US$117.4b
Vertiv Holdings Co is tightly linked to the AI buildout, supplying liquid cooling, power systems, and data center infrastructure into a US$15b backlog, with earnings growth, margin expansion, and high projected ROE that stand out even within AI infrastructure. The company is working directly with Nvidia on next generation thermal designs and has been expanding in Malaysia and through acquisitions like PurgeRite and ThermoKey to deepen its liquid cooling and services capabilities. At the same time, a high P/E, reliance on a small group of hyperscale customers, and funding entirely through higher risk borrowing mean expectations are already high and execution needs to stay strong. This is exactly why Vertiv’s full story around growth, pricing power, and risk management deserves a closer look in the context of AI infrastructure.
Vertiv’s accelerating AI backlog, margin expansion, and high projected ROE raise a big question, which only comes into focus when you line up the full analyst forecasts for Vertiv Holdings Co against the customer and funding risks that could flip this story on its head.
The three stocks covered here are just a starting point, and the full AI infrastructure universe on Simply Wall St includes 49 more companies uncovered by the AI Infrastructure Stocks screener with equally compelling cash flow and AI buildout narratives. Unlock deeper context as you identify and analyze the specific catalysts, balance sheet strength, and AI related storylines that fit your highest conviction approach, using the filters inside the Simply Wall St platform.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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