Cooling inflation data, a softer outlook for rate hikes and renewed enthusiasm around AI infrastructure have put data centers and their suppliers back in focus. With sentiment improving and chip stocks grabbing headlines, some of the less obvious enablers of this trend are starting to get attention. This article looks at three stocks from a U.S. data center and AI infrastructure screener that appear positively exposed to the latest macro backdrop.

The three stocks covered below are just a small sample of the opportunities that fit this data center and AI infrastructure theme, and the full screen surfaced 28 more U.S.-listed companies with similar business profiles that are not discussed here. If you want to identify and analyze your own candidates, head straight to the U.S. Data-Center and AI Infrastructure Enablers screener.

Corning (GLW)

Corning is a materials and optics company that sits in the plumbing of modern tech, supplying fiber cables and connectivity gear for telecom and data centers, glass for screens, specialty glass and ceramics for autos, and labware for life sciences. Optical Communications is its largest reported business, generating about US$7.3b in revenue. Automotive contributes about US$1.8b, alongside a sizable segment adjustment of roughly US$8.5b. The company has grown into a large cap, with a market value of about US$144.2b.

For investors watching the build out of AI data centers, Corning’s optical communications business is central, since its fiber and connectivity products support high bandwidth links that GenAI workloads rely on. Management has highlighted strong adoption of new GenAI oriented optical products and improving margins, supported by multiyear agreements with large customers in data centers and solar. At the same time, the stock carries risks that include high debt, a valuation that already reflects strong AI expectations, and sensitivity to trade policy and tariffs. If you want exposure to the physical backbone of AI and are comfortable weighing those trade offs, Corning is a company that may warrant a closer look.

Corning sits at the crossroads of AI demand and high expectations, with fiber, glass and solar contracts all in play. Before you assume the story is fully priced in, read the 4 key rewards and 3 important warning signs

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Eaton (ETN)

Eaton is a global power management company that supplies the electrical, backup power and grid equipment that keeps data centers, aircraft and vehicles running. Most of its revenue comes from Electrical Americas at about US$14.5b, followed by Electrical Global at roughly US$7.9b and Aerospace at about US$4.6b, with a segment adjustment of around US$3.1b. The stock is a large cap, with a market value of about US$178.6b.

Investors looking at the AI and data center build out may find Eaton hard to ignore. Management points to strong data center order growth and an 81% jump in its negotiation pipeline, backed by capacity expansions in transformers, switchgear and utility equipment that are still ramping through new factories. At the same time, the company carries a rich valuation, high debt and execution risks around vehicle and eMobility exposure and recent acquisitions, so the bar for future delivery is high and any stumble in AI driven demand or margins could matter.

Eaton’s accelerating data center pipeline and fresh factory capacity have investors focused on upside, but the real story could be what the current price already assumes. Get the 1 key reward and 1 important warning sign

Amphenol (APH)

Amphenol is a global supplier of electrical, electronic and fiber optic connectors and interconnect systems that sit inside everything from data centers and communication networks to autos, aircraft and industrial equipment. The company generates most of its revenue from Communications Solutions at about US$16.8b, with Harsh Environment Solutions adding roughly US$6.9b and Interconnect and Sensor Systems around US$5.7b. It is a large cap stock with a market value of about US$209.6b.

Amphenol gives you direct exposure to the physical wiring of the AI build out, with high speed connectors and cable systems feeding AI servers and data centers, just as cooling inflation data and a softer rate outlook are supporting interest rate sensitive tech hardware. Management points to very strong AI related growth in IT datacom and has been leaning into acquisitions such as CommScope’s connectivity business. However, the stock’s premium valuation, high reliance on external debt and heavy capital expenditure for AI capacity mean expectations are high. If you are looking for a way to consider AI infrastructure beyond chips, Amphenol is a company worth understanding in more depth before deciding whether that growth story justifies the price.

Amphenol’s accelerating AI wiring story and premium price tag suggest investors might be missing what really sits behind those high expectations. Get the analyst forecasts for Amphenol to see what the market may be glossing over.

Seeking Fresh Alternatives Beyond AI?

Markets move fast and the next breakout lists will not stay under the radar for long. Scan these fresh ideas before the momentum is fully caught by the crowd and consider them early.

• Explore early strength in cash generative companies by running a focused search across a 51 high quality undervalued stocks that still sit under the radar for now.
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• Review opportunities related to grid upgrades and electrification by examining a curated 36 power grid technology and infrastructure stocks while it still highlights potential standouts before broader attention increases.

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.