3 AI Infrastructure Stocks Linked To Data Center Demand

AI infrastructure is getting a fresh jolt of attention after AMD agreed to buy Fei-Fei Li’s World Labs for US$8.2b in stock, and that kind of deal can reset how investors think about who really benefits from the next wave of model development. Missing the right companies can mean missing the story. This article examines three stocks from our AI Infrastructure & Model Development Leaders screener that appear closely linked to this news.

The stocks covered below are just a first pass. The full screen surfaced 45 more companies that appear to have equally compelling AI infrastructure and model development stories that are not unpacked in this article.

If you want to go broader and identify your own highest conviction ideas in this space, head straight to the Artificial Intelligence (AI) Infrastructure & Model Development Leaders screener to filter and analyze the full set of AI infrastructure leaders.

Lite-On Technology (TWSE:2301)

Lite-On Technology links directly into the AI infrastructure story through power and optoelectronic hardware around AI accelerators, and the business is now leaning harder into high-value cloud and data-center gear that sits behind the model training headlines.

Lite-On Technology develops optoelectronic components and power solutions for cloud, data centers, automotive and smart infrastructure, with most revenue coming from the Cloud and Internet of Things Department at about NT$94.6b, alongside the Information and Consumer Electronics Sector on roughly NT$64.6b and the Photoelectric Department on about NT$29.1b, supporting a market value near NT$638.0b.

"The accelerating expansion of global data centers, driven by surging cloud/AI workloads, is fueling demand for Lite-On's high-power AI server components (PSUs, BBUs, integrated racks, cooling solutions), with management projecting AI-related revenues to rise from 15 to 20% of total in 2025 to at least 25% in 2026, directly supporting top-line growth and higher average selling prices over the next several years."

What really matters next is how one unresolved pressure shapes Lite-On Technology’s ability to turn that AI hardware demand into durable margins.

That margin question is the hinge. Read the full narrative for Lite-On Technology to see how Lite-On Technology’s AI push could reshape its profit profile and risk balance.

Asia Vital Components (TWSE:3017)

Asia Vital Components plugs into the AI infrastructure story through its cooling technology for high power computing, giving it a direct link to the thermally constrained side of GPU and data center build outs that sit behind more visible chip and model headlines.

Asia Vital Components provides thermal solutions and related electronics, with the Overseas Operating Department generating about NT$179.1b and the Integrated Management Division around NT$170.0b in revenue, on top of a market value near NT$1.33t.

"Rising demand for high power computing and wider liquid cooling adoption in data centers is increasing server related product contribution, which could support revenue scale and help sustain higher gross margin."

What really deserves attention is how one future shift in AI data center cooling preferences could ripple through pricing power and profitability.

That hinges on what happens next with thermal design choices, so read the full narrative for Asia Vital Components to see how Asia Vital Components could turn that pivot into accelerating upside.

STMicroelectronics (ENXTPA:STMPA)

STMicroelectronics is a broad semiconductor supplier tied into the AI infrastructure theme through power, sensing and embedded processing chips that feed into data centers, industrial systems and connected devices.

STMicroelectronics generates about $5.6b from its Analog, MEMS & Sensors Group, $4.1b from Embedded Processing, $1.7b from Power and Discrete Products, and $1.6b from RF & Optical Communications, with other activities contributing $17m, supporting a market value near €40.9b.

"Leadership in electric vehicles and hybrid cars, especially STMicroelectronics' leadership in silicon carbide (SiC) and smart power solutions, is driving design wins and high-volume programs, positioning the company for significant future revenue growth and margin expansion as EV adoption rates recover and competition stabilizes."

What happens if one less visible shift in AI data center power design changes how far those high volume wins translate into lasting profitability?

If that shift in power design is the real swing factor, read the full narrative for STMicroelectronics to see how STMicroelectronics could turn it into accelerating AI leverage.

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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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