Vertiv Stock And 2 AI Infrastructure Picks Backed By Data Center Demand
AI Infrastructure Stocks sit at the crossroads of powerful trends investors are watching right now, from inflation and energy prices to shifting interest rate paths and mixed growth signals across regions. As capital flows toward the physical backbone of AI, this theme focuses on companies that supply the data centers, cooling, power and connectivity that turn AI demand into actual revenue and cash flow. This article highlights 3 notable stocks from the AI Infrastructure Stocks screener, giving you a curated starting point for researching businesses that are tightly linked to the build out of AI’s real world hardware layer.
Forgent Power Solutions (FPS)
Overview: Forgent Power Solutions designs and manufactures the electrical distribution gear that keeps AI data centers, the power grid and heavy industrial sites running, from switchgear and transformers to power distribution units and backup systems, along with maintenance and retrofit services for these assets.
Operations: Forgent Power Solutions generates all of its approximately US$1.2b in revenue from the design, development, manufacture and marketing of its power equipment and related services, entirely in North America.
Market Cap: US$10.9b
Forgent Power Solutions sits right at the heart of AI data center buildouts and grid upgrades, with about US$1.2b in revenue and a backlog reported near US$2b that supports visibility on future projects. Analysts expect strong earnings and revenue growth, while some models see the stock trading well below fair value, which has drawn attention from research houses and TV commentators. At the same time, investors need to weigh low current margins, high financial leverage and an inexperienced, less independent board against this growth story, as well as recent share offerings that affect ownership and funding. The real question is whether the combination of AI driven demand, record bookings and capacity expansion can outweigh these governance and balance sheet concerns over time.
Forgent Power Solutions appears to be an AI infrastructure workhorse; however, its high leverage, thin margins and recent share issuances raise questions. Get the full story in the 4 key rewards and 2 important warning signs (1 is major!)
Lumentum Holdings (LITE)
Overview: Lumentum Holdings supplies the optical chips, lasers and photonic modules that move data inside cloud and AI data centers, and it also sells high powered industrial lasers used in manufacturing everything from semiconductor devices to EV batteries, serving customers across the Americas, Asia Pacific, EMEA and beyond.
Operations: Lumentum generates revenue across Japan (US$96.2m), Mexico (US$318m), Thailand (US$494.4m), Hong Kong (US$460.7m), the United States (US$523.1m), EMEA (US$178.7m) and other regions, with a segment adjustment of US$142.4m.
Market Cap: US$59.4b
Lumentum Holdings is positioned in the AI infrastructure buildout, supplying the optical networking components that hyperscalers use while also offering industrial lasers tied to semiconductor, solar and EV supply chains. Forecasts for earnings and revenue growth are currently positive based on available analyst coverage, and some valuation models published by analysts indicate potential upside. At the same time, the stock trades on a relatively high P/E and has exhibited volatile profitability, a sizeable debt load and periods of notable insider selling. That mix of elevated growth expectations, balance sheet risk and relatively short management tenure means investors who are interested in Lumentum’s AI exposure may wish to consider how much favorable news is already reflected in the share price and how sensitive the company’s recovery could be to changes in demand or margins.
Accelerating AI and industrial demand could be masking a very different story at Lumentum Holdings, where premium P/E, debt and insider selling all intersect in one crucial 4 key rewards and 2 important warning signs
Vertiv Holdings Co (VRT)
Overview: Vertiv Holdings Co designs and services the power, cooling and racks that keep AI data centers and other digital infrastructure running, from liquid cooled thermal systems and uninterruptible power supplies to integrated modules and monitoring software used across data heavy services like AI, cloud computing and online gaming.
Operations: Vertiv generates most of its revenue in the Americas at about US$7.0b, with additional contributions of roughly US$2.4b from Asia Pacific and US$2.3b from Europe, the Middle East and Africa, partly offset by around US$1.0b of intersegment sales.
Market Cap: US$111.5b
Vertiv has become one of the clearest pure plays on AI infrastructure, supplying liquid cooling and power systems that sit directly behind Nvidia powered data centers, with a reported US$10.2b in FY2025 revenue and about US$15b of backlog supporting that demand. Earnings growth has recently run ahead of both its own 5 year trend and the broader electrical sector, margins and ROE are strong, and analysts highlight high quality earnings alongside raised guidance and expanding facilities in growth regions such as Asia Pacific. The flip side is a premium valuation, heavy use of external funding and a relatively new management team, so investors interested in Vertiv’s AI cooling and services story need to weigh how much of this momentum is already reflected in the current price and how sustainable the growth can be.
Vertiv’s rapid AI cooling and power momentum has investors focused on the headlines, but the real story may lie in how future demand, margins and funding tie together in the analyst forecasts for Vertiv Holdings Co
The three stocks covered here are just a small sample of the AI infrastructure theme, and the full AI Infrastructure Stocks screener surfaces 52 more companies with revenue, cash flow and balance sheet narratives tied directly to the physical build out of AI. Use Simply Wall St to identify and analyze the specific catalysts, capital efficiency and risk profiles that matter most to you so you can focus on opportunities in this space that best match your priorities.
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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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