Micron Stock Surge Puts AI Data Center Shares In Focus

Micron’s blowout quarter and aggressive HBM buildout have put a spotlight on the plumbing of the AI boom: the power-hungry data centers that make those chips useful. Investors watching revenue almost quadruple at Micron are asking where that demand flows next. This article walks through three stocks exposed to the same AI data center story, and how the Micron news could matter for your portfolio decisions.

The stocks covered below are only a small sample of the AI data center builders and operators linked to the same demand story behind Micron’s results. The wider screen surfaced 59 more mid to large cap companies with equally compelling narratives that are not included in this article.

If you want to quickly identify and analyze your own highest conviction angles on this theme, head straight into the AI Data Center Builders and Operators screener.

Delta Electronics (TWSE:2308)

Overview: Delta Electronics supplies power and cooling hardware that keeps large data centers and AI compute facilities running efficiently and reliably worldwide.

Operations: Most revenue comes from the Power Supply and Spare Parts Business Group at about NT$337.9b, with Infrastructure adding roughly NT$226.2b and Automation NT$57.6b.

Market Cap: NT$4,909.4b

Delta Electronics matters for this AI data center screen because its power and thermal systems sit directly in the path of rising compute demand.

"Sustained investment in AI and data center infrastructure by hyperscalers is driving strong demand for Delta's power and cooling solutions, underpinning record revenues and margin expansion in these business lines. This supports Delta's ability to participate in potential top-line and operating income growth associated with global digitalization."

What investors will watch next is how one emerging pressure on Delta Electronics’ data center mix eventually feeds through to margins and pricing power.

That pressure point on Delta Electronics’ data center margins is exactly what the full narrative for Delta Electronics unpacks, including how AI demand could still accelerate value creation.

Keysight Technologies (KEYS)

Overview: Keysight Technologies builds design and test tools that help customers develop, validate, and secure high performance networking and compute hardware for AI data centers.

Operations: Keysight generates about US$4.7b from its Communications Solutions Group and roughly US$1.9b from the Electronic Industrial Solutions Group.

Market Cap: US$61.4b

Keysight Technologies matters for this AI data center screen because its test platforms effectively decide how quickly new networking and compute gear can move from lab concepts into production racks.

"AI data center build outs and the shift to Ethernet based AI networking, including 800G, 1.6T and early 3.2T development, are creating more complex test requirements across the full stack."

What investors need to weigh now is how one untested assumption about the pace of AI networking upgrades ultimately filters through to Keysight’s pricing power.

That hinge point is exactly what the full narrative for Keysight Technologies unpacks, revealing how AI test demand, pricing power, and execution risk could be decoupling for Keysight Technologies.

Seagate Technology Holdings (STX)

Overview: Seagate Technology Holdings supplies high capacity hard drives, SSDs, and storage systems that support data hungry AI data centers and cloud platforms worldwide.

Operations: Seagate generates about US$12.2b from manufacturing and distributing storage solutions, with revenue mainly sourced from the United States and Singapore.

Market Cap: US$209.7b

For the AI data center builders and operators theme, Seagate Technology provides exposure to the storage layer that quietly determines how much of Micron’s memory driven compute surge can be saved, searched, and reused by hyperscalers.

"Seagate is ramping up its HAMR based Mozaic drives, and management now reports that these products already represent about 40% of nearline exabyte shipments."

What could influence Seagate from here is how one untested assumption about long term hyperscale storage demand filters through pricing power.

If that storage demand assumption matters to you, read the full narrative for Seagate Technology Holdings to see how Seagate Technology could convert hyperscale cycles into accelerating cash flow resilience.

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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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