AI driven data center investment is drawing large amounts of capital, with major tech firms projected to spend about US$1 trillion on these facilities by 2027. That scale of buildout can affect real estate, construction, electrical equipment and semiconductor stocks that support the physical backbone of AI. At the same time, higher spending power from rising market wealth and sticky inflation risks keep the interest rate backdrop in focus. This article looks at 3 stocks from an AI Data Center Infrastructure screener that are exposed to these forces, and why some investors might view them as opportunities or choose to stay cautious.

QXO (QXO)

Overview: QXO is a building products distributor that supplies roofing, siding, waterproofing and related materials across the United States and Canada to contractors, home builders, building owners, lumberyards and retailers under well known brands such as GAF, Owens Corning and James Hardie.

Operations: QXO generates about US$8.56b of revenue from data processing services, with around US$8.32b of this coming from customers in the United States.

Market Cap: US$14.0b

QXO gives investors direct exposure to capital spending on data centers and commercial construction, while still being anchored in everyday roofing and building products. Management is targeting efficiency gains from AI driven pricing and inventory tools, which could be significant for a distributor that handles billions of dollars of product. The stock currently appears deeply undervalued against one estimate of fair value, yet the company is still loss making and relies heavily on external funding, with recent dilution and a complex capital structure. If QXO is able to deliver on integration and cost control after large acquisitions, investors who understand the story early may see their positioning change alongside any future shift in market sentiment.

QXO’s mix of AI tools, substantial data center exposure and a stock that appears deeply mispriced raises a bigger question. Get the full picture with the DCF valuation analysis for QXO to see what the headline valuation might be missing.

Toromont Industries (TSX:TIH)

Overview: Toromont Industries supplies and rents heavy equipment, industrial engines and power systems across Canada, the United States and other markets, while its CIMCO unit designs and services large scale refrigeration and thermal management systems for industrial users and ice rinks.

Operations: Toromont Industries generates around CA$5.0b of revenue from its Equipment Group segment and about CA$526m from CIMCO.

Market Cap: CA$17.6b

Toromont Industries sits at the intersection of the AI driven data center buildout and traditional infrastructure, with Caterpillar based power systems, AVL data center enclosures and a large rental and service footprint tied to construction, mining and power projects. A strong backlog in power systems and AVL orders into 2027, together with recurring service income, gives investors visibility on demand for equipment and maintenance that is directly linked to the current surge in capital spending. At the same time, the company faces risks from cost inflation, heavy reliance on key suppliers and the possibility of overbuilding capacity if data center demand cools. How those trade offs compare with analyst growth expectations and the current P/E is what readers may want to examine more closely.

Toromont Industries sits at the intersection of power systems, data centers and construction, yet many investors still focus on the headline P/E. Consider that alongside the analyst forecasts for Toromont Industries to better understand what the current backlog might be signaling.

Daqo New Energy (DQ)

Overview: Daqo New Energy manufactures high purity polysilicon in China, supplying solar panel producers that turn its material into ingots, wafers, cells and modules used in large scale solar power projects.

Operations: Daqo New Energy generates about US$568.2m of revenue from polysilicon sales, all from customers in the People’s Republic of China.

Market Cap: US$819.4m

Daqo New Energy sits at the intersection of two themes: solar buildouts and the energy needs of AI data centers. At the same time, the company is working through pressures related to oversupply, losses and reliance on policy support. The stock trades at a steep discount to some estimates of fair value and to many semiconductor peers on sales multiples. Analysts also outline scenarios that include revenue growth and a possible return to profitability, though these outcomes are uncertain. The planned RMB 6,000m Kunshan manufacturing base focused on next generation energy solutions for AI data centers introduces additional potential that some investors may view as not fully reflected in the share price. Investors who understand both the upside of N type polysilicon and the risks of industry cycles may see more here than just a low valuation.

Daqo New Energy’s low valuation against peers and its Kunshan AI energy plans hint at a story many investors may be underestimating. Start with the analyst forecasts for Daqo New Energy and see what the current pricing might be masking.

The three stocks in this article are a starting point. The full AI Data Center Infrastructure screener has identified 40 more companies with equally compelling narratives that you have not seen yet through the AI Data Center Infrastructure screener. Use Simply Wall St to identify and analyze the specific catalysts and narratives discussed here so you can focus on the highest conviction AI data center infrastructure plays.

Take Control of Your Investment Journey

If Daqo New Energy or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond AI?

New ideas can move fast. Some stocks are building breakout momentum while they are still under the radar for now. Today’s pricing might be gone tomorrow, so consider acting promptly if they fit your strategy.

• Spot potential turnarounds before they start flying by scanning curated small caps through the 21 elite penny stocks with strong financials, which screens for quality balance sheets and meaningful financial strength.
• Track potential compounding income streams by checking companies in the 9 dividend fortresses, which focuses on higher yielding businesses with balance sheets designed to support ongoing payouts.
• Explore shifting energy themes with the 88 nuclear energy infrastructure stocks to see which infrastructure focused stocks currently fit this concentrated nuclear power buildout story.

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.