Global purchasing manager data now points to broad expansion across key European economies, with services activity picking up and manufacturing showing pockets of improvement. That kind of real world demand often requires more data, more compute, and more power. For investors, this puts AI infrastructure stocks in the spotlight. This article highlights three screeners that stand out as potential beneficiaries of that build out story.

The three AI infrastructure stocks covered below are only a sample, with the full screen surfacing 53 more companies that carry equally compelling build out narratives tied to data centers, power systems, and connectivity. If you want to identify and analyze the highest conviction opportunities across this broader universe, head straight into the AI Infrastructure Stocks screener.

Powell Industries (POWL)

Overview: Powell Industries designs and services custom-engineered electrical equipment such as power control rooms, switchgear, circuit breakers, and control systems that are used to keep heavy industrial sites, utilities, and data centers powered and running safely.

Operations: Powell Industries generates about US$1.2b in revenue from its Electric Equipment segment.

Market Cap: US$7.7b

Powell Industries sits at the intersection of data center buildouts, electrification, and grid upgrades, supplying the high spec switchgear and power control systems that keep those projects online. Record quarterly orders of US$934 million and a backlog above US$2.4b, supported by data center, LNG, utility, and petrochemical demand, give investors insight into potential future revenue. Strong liquidity with about US$634 million in cash and no debt, plus high reported earnings quality and ROE, reflect a solid financial footing. On the other hand, expectations are already high, with analysts discussing the sustainability of current margins and the pace at which acquisitions such as Remsdaq might contribute. For investors, a central consideration is whether current pricing fully reflects both the growth runway and these execution risks.

Powell Industries sits on a heavy backlog, strong liquidity and no debt, yet the real story may hinge on how those orders convert. Get the 3 key rewards and 1 important warning sign

Build your own AI infrastructure shortlist around Powell Industries

Powell Industries and the two other stocks in this article all surfaced from a single Simply Wall St screen, but the real edge comes from setting your own rules. Use our customisable Screener to mix filters like valuation, growth, balance sheet strength, risks and dividends, or start with any of our curated Investing Ideas.

Forgent Power Solutions (FPS)

Overview: Forgent Power Solutions designs and manufactures electrical distribution equipment and related services that keep data centers, power grids and energy heavy industrial facilities supplied with reliable power, from switchgear and transformers through to power distribution units and modular power skids.

Operations: Forgent Power Solutions generates about US$1.2b in revenue from the design, development, manufacture and marketing of its products and services, all from North America.

Market Cap: US$12.0b

Forgent Power Solutions is squarely tied to the build out of AI data centers and grid infrastructure, with record bookings and a backlog reported near US$2b that gives line of sight on future work. Earnings and revenue growth have recently run well ahead of the broader US market and Electrical industry, and several brokers have initiated coverage with positive views and higher price targets. However, this growth story comes with real tension points. Funding relies heavily on external borrowing, interest costs are not yet comfortably covered by earnings, and both management and the board are relatively inexperienced, with rapid turnover. For investors, the core question is whether strong demand and earnings momentum can outpace the risks tied to leverage and governance.

Forgent Power Solutions sits at the intersection of AI data center momentum and balance sheet stress. Get the full story on bookings, backlog and leverage in the 4 key rewards and 2 important warning signs (1 is major!)

Flex (FLEX)

Overview: Flex is a global manufacturing and supply chain partner that builds and assembles complex hardware for AI data centers, communications, automotive, healthcare, industrial and consumer products, with deep exposure to cloud and power infrastructure as well as highly regulated end markets.

Operations: Flex generates about US$29.3b in revenue, with around US$11.6b from Integrated Technology Solutions, US$10.5b from Regulated Manufacturing Solutions, and US$7.2b from Cloud and Power Infrastructure.

Market Cap: US$46.8b

Flex sits at the intersection of AI data centers, high density power and liquid cooling, with its Cloud and Power Infrastructure segment reporting 35% growth and a planned spin off that could surface value from those data center and AI hardware contracts. At the same time, high forecast earnings growth, S&P 500 inclusion and a large global footprint in healthcare and automotive give the company breadth that many pure play AI hardware suppliers lack. Investors need to weigh that against thin margins, meaningful leverage and reliance on a small group of large customers that are increasingly exploring in house manufacturing. The key question is whether AI infrastructure growth and the SpinCo separation can more than offset those pressures over the next few years.

Flex’s AI and data center contracts are accelerating, while thin margins and customer concentration still leave key questions open. Get the 4 key rewards and 3 important warning signs

Seeking Alternatives Before The Crowd

Fresh ideas can move fast. The next breakout, quiet momentum shift or dropping entry price often gets caught early and then flies. Screen under the radar for now and act now.

• Spot resilient cash generators before they catch a wave by scanning the 51 high quality undervalued stocks while the market is still looking the other way.
• Explore the next potential compute supercycle by targeting infrastructure players in the 89 nuclear energy infrastructure stocks while they are still building momentum.
• Consider positioning ahead of the robotics upgrade cycle by filtering for automation leaders in the 36 robotics and automation stocks before they move out of reach.

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.