Nvidia And 3 AI Infrastructure Stocks For Data Center Buildout

Record export orders in Taiwan tied to AI related technology show how quickly demand is moving toward the physical backbone of computing. Data centers, power, and cooling are where that demand turns into real spending. Investors looking at AI infrastructure stocks are watching this shift closely. This article highlights three AI infrastructure stocks from our screener that align with that theme and merit a closer look.

The three stocks covered below are just a sample from this theme, and the full screen surfaced 52 more AI infrastructure companies with equally compelling stories that are not included in this article. To identify and analyze potential high conviction ideas in this space, head straight to the AI Infrastructure Stocks screener.

Western Digital (WDC)

Western Digital is a long established US data storage company that develops and sells hard disk drive based devices and platforms, with a major focus on high capacity data center drives that support hyperscale and cloud AI workloads. The business currently reports about US$12.9b in revenue from its Hard Disk Drives segment, which covers everything from internal HDDs to enterprise data center platforms sold globally through OEMs, distributors, retailers, and its own channels. With a market cap of roughly US$178.9b, Western Digital is a large scale player in the physical storage layer of AI infrastructure.

Investors watching the AI infrastructure buildout may find Western Digital interesting because its high capacity data center HDDs are directly tied to the storage needs of hyperscalers training and serving AI models, and management reports order books stretching years ahead. At the same time, the story hinges on whether today’s elevated margins, helped by tight supply and a concentrated industry structure, can hold before new capacity, Chinese competitors or cheaper flash options pressure pricing. The stock also adds a layer of complexity through non cash earnings items and a funding mix reliant on external capital rather than customer deposits. This makes the quality and durability of cash generation a crucial piece of the puzzle that the headline numbers do not fully reveal.

Western Digital’s AI storage story is accelerating, yet the real question is how sustainable those order books and margins are. Get the full picture with the 4 key rewards and 3 important warning signs (1 is major!)

Build your own AI infrastructure shortlist around Western Digital

Western Digital and the other AI infrastructure stocks in this article are just three examples surfaced by our stock screener. Use our customised Screener to combine filters on valuation, growth, balance sheet strength and risks to find ideas that fit your approach, or jump straight into any of our curated Investing Ideas.

Jabil (JBL)

Jabil is a global manufacturing and engineering partner that designs and builds electronic hardware, embedded software, and complete systems for customers across healthcare, automotive, industrial and consumer markets. Its clearest link to AI infrastructure sits in the Intelligent Infrastructure segment, where it designs and manufactures cloud data center server platforms, high density thermal and electrical subsystems, and rack scale hardware used by hyperscalers. That segment generates about US$15.8b in revenue, alongside US$12.4b from Regulated Industries and US$5.4b from Connected Living and Digital Commerce, making Jabil a highly diversified US$35.5b company by market cap.

Investors watching the shift of AI from software hype to real data center spending may find Jabil interesting because it helps major cloud customers design and assemble the physical racks, server chassis and high density cooling and power systems that make large AI clusters work. The company combines this AI linked hardware with a broad manufacturing base in the US, India and other regions, and analysts highlight strong free cash flow, high returns on equity and raised revenue guidance as signals of operational strength. At the same time, meaningful debt levels, weakness in areas such as renewable energy and EV related demand, and exposure to tariff changes mean the story is not risk free. This is one reason many investors are taking a closer look now rather than later.

Jabil’s accelerating role in AI hardware is easy to see. The harder part is understanding how its diversified segments, debt and tariff exposure all fit together. Get the full story in the analysis report for Jabil

Vertiv Holdings Co (VRT)

Vertiv Holdings Co designs and services the power, cooling and rack infrastructure that keeps data centers and communication networks running, with a key AI link through its high density thermal management and liquid cooling systems that allow GPU heavy racks to operate continuously. The company generated about US$7.5b from the Americas, US$2.7b from Asia Pacific and US$2.4b from Europe, the Middle East and Africa, highlighting a broad global footprint in critical digital infrastructure. Vertiv’s market cap of roughly US$104.9b reflects how important investors already view this role in the physical layer of AI.

Vertiv is drawing attention because it sells the liquid cooling and power systems that AI data centers cannot easily switch away from. It pairs that hardware with lifecycle services and predictive analytics that keep revenue tied to long lived infrastructure. The business is large and globally diversified, yet meaningfully exposed to a small group of hyperscale customers and to AI related capex cycles, which can make the stock sensitive to any pause in data center buildouts. For investors who can live with that volatility, the combination of critical role in AI infrastructure and growing services mix makes Vertiv a company worth studying in more detail.

Vertiv’s AI infrastructure story is accelerating, yet many investors still treat it like a simple hardware supplier. See how the analyst forecasts for Vertiv Holdings Co frames the next phase of this buildout, and one risk that could quietly flip the script.

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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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