Fed Chair Kevin Warsh just highlighted AI investment as a bright spot for the US economy, even as inflation and higher rates keep pressure on risk assets. That spotlight puts the physical backbone of AI in focus, where data centers, power and cooling convert demand into real-world cash generation. This article profiles three screened infrastructure stocks tied to that theme and explains why they may deserve a closer look now.
The stocks covered below are just a sample of the AI infrastructure theme, and the full screen surfaced 91 more companies with equally compelling stories that are not included here. To go straight to the source and identify your own highest conviction ideas, head into the AI Infrastructure Stocks screener.
Huber+Suhner (SWX:HUBN)
Huber+Suhner supplies power and data connectivity hardware that keeps high density computing humming, with its fiber and cable systems directly used in AI heavy data centers while still drawing sales from broader industrial, communication and transport markets.
Huber+Suhner generates CHF359.5 million from Industry, CHF252.7 million from Communication and CHF263.4 million from Transportation. It has a market value of about CHF3.0b and reflects a globally diversified connectivity specialist tied into AI data center plumbing.
For the AI Infrastructure Stocks theme, Huber+Suhner matters because its fiber cables, connectors and management systems plug directly into the physical networks that feed power hungry training clusters. This gives the group a tangible role in the shift from software hype to real hardware spend.
"Huber+Suhner's focus on high-impact innovation projects such as all optical switches and hollow-core fiber technology in the data center segment could drive significant growth, potentially increasing future revenues and margins."
What happens to Huber+Suhner’s upside will depend heavily on how one unresolved pressure shapes future pricing power and profitability in those data center contracts.
To see how that pressure point, the upside from new fiber projects and the risks all fit together, read the full narrative for Huber+Suhner for the full picture.
Shanghai Sunmi Technology (SEHK:6810)
Shanghai Sunmi Technology runs an AI-enabled BIoT platform that connects smart payment devices and SUNMI OS software to edge infrastructure for retailers. It generated about CN¥4.2b from smart device design and sales and has a market value near HK$21.2b.
Shanghai Sunmi Technology provides the cash register side of AI infrastructure, with SUNMI OS smart terminals and a cloud BIoT platform that host AI inference in physical stores. Revenue grew 14.9%, yet a recent period shifted from profit to a loss, so the key issue is how one pressure on profitability is resolved.
That profitability squeeze is the real hinge, so tap into the 2 key rewards and 2 important warning signs (1 is major!) to see where Shanghai Sunmi Technology’s AI story could sharply accelerate or stall.
SeSa (BIT:SES)
SeSa is an Italian IT solutions group that plugs into the AI infrastructure theme through its cloud and data center services, which support enterprise AI workloads while sitting inside a much broader technology and services portfolio.
SeSa generates most of its €3.7b top line from ICT VAS at about €2.3b and Software and System Integration at about €903 million, with Green VAS contributing about €428 million and smaller lines from Business Services and Corporate & Digital Ecosystem. The stock has a market value near €1.4b.
"While SeSa is well-positioned to benefit from the accelerating adoption of artificial intelligence and automation by enterprises, with the Industrial Plan targeting high single-digit revenue growth and a major push into AI-enabled digital platforms and business services, there is a risk that increasing automation and AI adoption may simultaneously erode demand for SeSa's traditional value-added integration and consultancy services, potentially limiting future EBITDA margin expansion despite strong topline growth."
What happens when one pressure point on SeSa’s AI-focused services mix collides with its push toward higher quality recurring digital revenue.
That clash is exactly what you need to size. Read the full narrative for SeSa to see how SeSa’s AI push could accelerate earnings quality and resilience.
Curious About Alternative Opportunities?
Fresh ideas move first. By the time every investor spots a breakout, early momentum has often flown. Scan these under the radar lists before the crowd and act now.
- Spot early-turn stories with improving quality metrics and let the 198 high quality undervalued stocks guide you toward companies the wider market has not fully priced in yet.
- Track real cash generators as AI adoption spreads and use the 38 profitable AI stocks that aren't just burning cash to focus on businesses already converting excitement into operating earnings.
- Secure steadier portfolio anchors while yields stay in motion by tapping into the 219 dividend fortresses that highlight companies prioritizing substantial and consistent payouts.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com