Artificial intelligence just hit a fresh reality check, and that matters for your portfolio. OpenAI’s projected US$70b annualized revenue by 2026, along with a current US$50b run rate and aggressive funding goals, is resetting expectations for what AI demand really looks like. That reset can punish overhyped stories and reward better quality exposure. This article examines three stocks tied to that news and discusses how the shifting AI narrative might affect them.
The stocks covered next are just a sample of what this AI and cloud infrastructure theme turns up, since the full screen surfaced 67 more companies with equally compelling narratives that are not included here. If you want to go straight to the source and identify candidates for your own watchlist, head into the Enterprise AI and Cloud Infrastructure Stocks screener to filter, analyze, and focus on the highest conviction ideas for this trend.
Delta Electronics (TWSE:2308)
Delta Electronics plugs directly into the enterprise AI and cloud infrastructure theme through the less glamorous but essential work of power delivery and cooling for dense compute. This is where much of the real bottleneck and long-term spending is likely to sit.
Delta Electronics supplies power and thermal management gear across data centers, industrial automation, mobility and infrastructure. The Power Supply and Spare Parts unit contributes about NT$337.9b and Infrastructure roughly NT$226.2b in revenue, supporting a broad portfolio for a roughly NT$5,104.2b company.
"Delta's data center and AI-related businesses have demonstrated robust growth, supported by hyperscaler investment and demand for advanced cooling and power management solutions, which are long-term secular drivers that could propel sustained revenue and profit growth."
The real swing factor is how one pressure on future pricing power plays out as AI data center demand meets rising competition and cost inflation.
That pricing pressure is exactly what the full narrative for Delta Electronics digs into in detail, so read the full narrative for Delta Electronics to see how AI demand and margins might be decoupling.
Fabrinet (FN)
Fabrinet sits squarely in the Enterprise AI and Cloud Infrastructure theme because it builds the high speed optical hardware that lets data center traffic move quickly enough for modern AI workloads. This is exactly where the latest OpenAI demand signals are pointed.
Fabrinet manufactures optical and electro-mechanical hardware for cloud datacenters, AI networking and other industrial uses, with about US$4.6b of sales coming from optical networking equipment. The business is valued at roughly US$17.8b, putting it firmly in large cap territory.
"Surging AI related data center optics and DCI demand, with data center revenue at 51% of total and Q4 FY26 DCI products at more than a 1b annualized run rate, points to a multi year build out that could keep Fabrinet’s utilization and data center revenue elevated."
What really matters from here is how one quiet shift in Fabrinet’s mix of higher value packaging work versus basic assembly shapes future earnings power.
That quiet shift in mix is exactly where the story gets interesting, so read the full narrative for Fabrinet to see how AI demand might be reshaping Fabrinet’s earnings power.
Napatech (OB:NAPA)
Napatech provides programmable smart NICs and DPUs that help cloud, enterprise and telecom data centers handle heavy AI and networking workloads, which fits directly with the Enterprise AI and Cloud Infrastructure theme. The group generated about DKK 109 million from the Americas and DKK 66 million from the rest of the world, and is valued at roughly NOK 4.9 billion.
Napatech provides exposure to the plumbing of enterprise AI, with smart NICs and DPUs used in cloud and telecom data centers that need fast, efficient networking for AI workloads. It is considered a high risk play where outcomes depend on how future AI infrastructure demand and pricing develop.
Those outcomes hinge on a few critical swing factors, so check the 2 key rewards and 1 important warning sign to see how Napatech’s AI upside compares with its execution risk.
Seeking Alternatives Before Momentum Flies Past?
Fresh opportunities do not stay under the radar for long. Breakout stories gain momentum, laggards get caught dropping, and pricing changes fast. Scan these ideas before the crowd and consider your options.
- Target resilient compounding potential by reviewing a curated list of 225 dividend fortresses that focus on steady income while prices still reflect today’s yields.
- Track infrastructure momentum by assessing the hand picked 43 power grid technology and infrastructure stocks that are building the backbone for electrification.
- Evaluate a focused group of 16 top copper producer stocks that connect real assets with long term demand, before pricing fully adjusts.
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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