AI Infrastructure Stocks Retail Investors Are Studying As Fed Pressure Stays High

Sticky inflation, a firm jobs market, and a Federal Reserve that signals it may keep policy tight or even tighten further all put a spotlight on companies tied to AI infrastructure and data centers. Capital spending linked to AI could both support earnings potential and add fresh inflation pressure, so stock selection matters. This article looks at how those macro forces intersect with AI related demand, and highlights three stocks with positive exposure from our AI Infrastructure and Data Center Stocks screener that investors may want to study more closely before deciding whether to lean in or stay cautious.

FormFactor (FORM)

Overview: FormFactor is a semiconductor test specialist that supplies probe cards, test systems, and cryogenic and thermal equipment used to check the performance of advanced chips powering AI hardware, data centers, and other high performance electronics. Its products sit at a critical stage of the chip manufacturing process, helping customers validate complex devices from GPUs and HBM memory to image sensors and quantum processors.

Operations: FormFactor generates about US$699.6 million of revenue from Probe Cards and US$140.1 million from Systems, with sales spread across Asia, the United States, and Europe and particularly concentrated in South Korea (US$275.1 million) and Taiwan (US$228.2 million).

Market Cap: US$8.35b

FormFactor sits at the intersection of AI and semiconductor manufacturing, supplying the probe cards and test gear that chipmakers rely on for HBM DRAM, GPUs, and advanced packaging while AI capital spending remains a key macro focus. The company is focusing on AI related test complexity, including co packaged optics and chiplet architectures. It also faces trade offs such as high P/E expectations, an earnings history that has not been smooth, and balance sheet funding that leans on external borrowing. Management is investing in capacity and R&D for AI centric products. Earnings forecasts currently suggest a growth profile that differs from the broader market. Investors who can tolerate volatility may find FormFactor worth a closer look in the context of persistent inflation, a firm jobs market, and sticky Fed policy.

FormFactor sits at the heart of AI chip testing, yet its high P/E expectations and uneven earnings record leave big questions about the risk return trade off. Get the 2 key rewards and 3 important warning signs

Codan (ASX:CDA)

Overview: Codan (ASX:CDA) builds communications gear and metal detectors used by governments, defense forces, emergency services, corporates, and small scale miners worldwide, supplying secure radios, networking systems, and handheld detectors for gold prospecting, demining, and military applications.

Operations: Codan generates A$448.3 million of revenue from Communications and A$307.8 million from Metal Detection, with only A$6.1 million classified as Other, and sells into markets including the United States of America, the United Arab Emirates, and other international regions.

Market Cap: A$7.59b

Codan stands out in the AI infrastructure theme because its secure communications platforms and mesh networking solutions are directly tied to defense, public safety, and data rich environments where reliable connectivity is critical. At the same time, AI related capital spending and inflation pressures are keeping the Federal Reserve on edge. Earnings momentum has been strong, with recent growth of 43.9% and returns on equity above 20%, yet the stock trades on a high P/E and analysts see a fair value that is close to the current price, so expectations are demanding. Heavy exposure to gold detection and competitive communications markets adds execution risk, which makes the balance between potential growth and valuation an important consideration for Codan.

Codan’s mix of 43.9% earnings growth and a high P/E suggests something unusual is priced in, but not fully understood yet. Get the analyst forecasts for Codan to see what expectations might be missing.

PDF Solutions (PDFS)

Overview: PDF Solutions provides software, data platforms, and hardware tools that help chip manufacturers and electronics companies monitor production, improve yields, and connect factory equipment so they can run more efficient, data driven manufacturing for AI and data center hardware.

Operations: PDF Solutions generates US$231.4 million of revenue from Software & Programming, with about US$111.0 million from the United States, US$36.2 million from Japan, US$34.4 million from China, and US$49.7 million from the rest of the world.

Market Cap: US$2.17b

PDF Solutions is positioned in the AI build out, supplying analytics and connectivity software that help data hungry fabs and electronics manufacturers seek to extract more output from every tool at a time when persistent inflation and tight Fed policy keep cost control in focus. Earnings have recently swung to profit, revenue was US$60.13 million in Q1 2026, and forecast earnings growth is described as strong, yet current net margins are still modest and all liabilities are funded by higher risk external borrowing. The company also has concentrated semiconductor customers, exposure to China, and a recent US$201.0 million equity raise, combining AI related demand drivers with financial and execution risks that investors may wish to evaluate carefully.

PDF Solutions sits where AI build out, fresh profitability, and a recent US$201.0 million equity raise intersect; yet the real story is how these pieces fit together across customers, margins, and funding, which is why the analysis report for PDF Solutions stops short of a simple bull or bear label

The three stocks covered here are just a starting point, and the full AI Infrastructure and Data Center Stocks screener surfaces 34 more companies with similarly compelling AI infrastructure and data center narratives that you have not seen yet. Use Simply Wall St to identify, filter, and analyze the exact catalysts, financial health markers, and business narratives that matter most so you can focus on the highest conviction ideas in this theme.

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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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