If AI Infrastructure Is The Next Gold Rush These Three Stand Out

AI gets most of the headlines, but the real money often flows to the companies that build and run the hardware backbone that keeps it all running. With energy costs in focus, central banks tightening, and inflation still a concern across regions, attention is shifting to businesses that can turn essential infrastructure into steady cash flow. Our AI Infrastructure Stocks screener is built to highlight these “picks and shovels,” filtering for revenue traction and operational efficiency. In this article, you will see three standouts from the screener that show how this theme can fit into a diversified portfolio.

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Overview: Forgent Power Solutions designs and manufactures electrical distribution equipment that keeps data centers, power grids and heavy industrial sites running, and also supports customers with maintenance, testing, modernization and retrofit services from its base in Dayton, Minnesota.

Operations: Forgent generates all of its US$1.2b in revenue from designing, developing, manufacturing and marketing its products and services in North America.

Market Cap: US$17.7b

Forgent Power Solutions sits at the heart of the AI build out, supplying the switchgear, transformers and power distribution units that data centers and utilities rely on. The stock still trades about 9.8% below one estimate of fair value based on forecast cash flows. Earnings growth of 88.1% over the past year and raised revenue guidance to US$1,350 to US$1,390 million are drawing attention, although current net margins are slim at 1.4% and interest costs are not well covered. A young, less independent board, a volatile share price and reliance on external borrowing add real risk, but record bookings, a near US$2b backlog and recent capital raises suggest a company in the middle of a major scale up that investors may not want to ignore.

Forgent’s surge in bookings and backlog suggests the scale up story is still being priced in, but the thin 1.4% margin and debt costs raise bigger questions that the 3 key rewards and 2 important warning signs (1 is major!)

Overview: Fermi develops, owns and leases large private power campuses in the United States that combine grid independent energy generation with high performance computing capacity for AI heavy tenants such as data centers and chip ecosystem companies, handling everything from land acquisition and permitting to construction and long term leases.

Market Cap: US$4.4b

Fermi sits at the sharpest edge of the AI infrastructure theme, building a multi gigawatt private grid at Project Matador and courting hyperscalers and chipmakers that are competing for long term power access. It currently has no revenue and is reporting heavy net losses while assets are under construction. Analysts note that the investment case depends on factors such as securing binding tenant contracts, accessing more than US$3b of project financing on acceptable terms, and managing governance tensions around activist campaigns and insider selling. For investors who can handle that mix of potential opportunity and execution risk, Fermi may warrant closer attention.

Fermi’s multi gigawatt private grid story is bold, but the real question is how the mix of project financing, contracts and governance fits together. To learn more, see the analysis report for Fermi.

Overview: Vertiv Holdings Co supplies the power, cooling and thermal management systems that keep data centers, communication networks and other mission critical facilities running, including hardware, software and life cycle services that support AI, cloud, e commerce, online banking and other digital services worldwide.

Operations: Vertiv generates about US$7.0b of revenue from the Americas, US$2.4b from Asia Pacific and US$2.3b from Europe, the Middle East & Africa, with intersegment sales of around US$1.0b.

Market Cap: US$114.4b

Vertiv sits at the center of the AI power and liquid cooling build out, with a US$10.2b revenue base, a US$15b backlog, and liquid cooling products that are being designed alongside next generation NVIDIA GPU architectures. Earnings growth has been strong, margins and return on equity are high, and recent acquisitions like PurgeRite and ThermoKey extend its reach into higher margin services and European manufacturing. At the same time, a rich P/E multiple, reliance on external borrowing and heavy exposure to a small group of hyperscaler customers mean any slowdown in AI data center spending could hit hard. For investors following the AI infrastructure theme, this mix of growth, quality and valuation tension makes Vertiv worth a closer look.

Vertiv’s rapid AI build out exposure and rich P/E suggest the story is still unfolding, but the missing piece may be how expectations stack up against reality in the analyst forecasts for Vertiv Holdings Co

The three stocks covered here are only a starting point, and the full AI Infrastructure Stocks screener surfaces 45 more companies whose cash flow stories, backlog profiles and power-hungry AI exposure may be just as compelling. Use Simply Wall St to identify and analyze the specific catalysts that matter to you, such as revenue traction and backlog growth, as well as balance sheet strength and tenant quality, so you can focus on the highest conviction AI infrastructure opportunities.

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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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