Global food prices are pushing higher again according to the latest FAO index, and that keeps central banks wary about cutting rates too quickly. Higher and stickier inflation tends to reward companies that supply essential hardware and services rather than optional software. That is where AI infrastructure stocks come in. This article walks through three standouts from our screener that sit at the heart of this cash focused theme.

The stocks covered below are just a small sample of the AI infrastructure theme, and the full screen surfaced 53 more companies with equally compelling cash focused narratives that are not covered here. If you want to identify the setups that best fit your own return and risk preferences, go straight to the AI Infrastructure Stocks screener.

Western Digital (WDC)

Western Digital is a long established data storage company that supplies hard disk drives and related platforms for PCs, external storage, home and office NAS devices, and large cloud data centers across the US, Asia, Europe, the Middle East, and Africa. The company also works with partners on quantum error correction technology to support future quantum computing. Western Digital currently has a market cap of about US$178.9b.

Western Digital is positioned within the AI infrastructure build out, supplying high capacity HDDs and platforms to top cloud providers that are signing multiyear storage agreements through 2029 to 2031. The stock combines reported earnings growth, high current profit margins, and a P/E that sits below many tech peers. Some investors therefore view it as a way to gain AI exposure at a lower entry multiple. However, revenue is heavily concentrated in a small group of hyperscale customers and the share price has been volatile, with recent insider selling and sensitivity to sector swings. For investors evaluating whether the long term AI storage opportunity outweighs those concentration and technology risks, Western Digital may warrant closer review.

Western Digital sits at the center of long term AI storage demand, yet its lower P/E and concentrated hyperscale revenue can tell a more complex story. Get the full picture with the 3 key rewards and 3 important warning signs

Build your own AI infrastructure shortlist

Western Digital and the two other AI infrastructure stocks in this list all surfaced from a single Simply Wall St screen, but the real edge comes from building filters that match your own rules on valuation, growth, balance sheet strength, and risks. Use our flexible Screener to set those rules in minutes, or browse our curated Investing Ideas for ready made stock shortlists that can jump start your research.

Celestica (TSX:CLS)

Celestica is a Toronto based electronics manufacturer and supply chain partner that designs, builds, and services hardware for original equipment makers, cloud providers, hyperscalers, and industrial and aerospace customers. The Connectivity & Cloud Solutions segment is the core of the business at about US$12.3b of revenue, with Advanced Technology Solutions adding roughly US$3.3b, which shows how central large scale networking and cloud hardware is to its model. Celestica currently carries a market cap of about CA$58.5b.

Investors looking at AI infrastructure may consider Celestica because it operates at the intersection of hyperscaler demand, high speed networking, and full rack integration. The CCS segment contributes about 72% of revenue, and recent programs in 800G and 1.6T networking plus the AMD Helios rack scale AI platform point to a deeper role in customer roadmaps. That concentration in a few large cloud and AI customers has both advantages and drawbacks and raises execution and funding risks, particularly as the company relies on external borrowing and high non cash earnings. Analysts have highlighted revenue and earnings growth, strong ROE, and margin improvement as factors that help explain the raised 2026 outlook and the cluster of higher price targets reported this year.

Celestica’s accelerating AI hardware programs and raised 2026 outlook have investors focused on growth, yet funding and customer concentration risks are easy to miss. See how analysts frame that balance in the analyst forecasts for Celestica

Flex (FLEX)

Flex is a global manufacturing and supply chain partner that builds everything from high speed networking gear and data center power systems to automotive electronics and medical devices across its Integrated Technology Solutions, Regulated Manufacturing Solutions, and Cloud and Power Infrastructure segments. Revenue is spread across Cloud and Power Infrastructure at about US$7.2b, ITS at roughly US$11.6b, and RMS at around US$10.5b, which gives the company a broad base across AI hardware, industrial, healthcare, and autos. Flex currently has a market cap of about US$45b.

Flex sits at the center of the AI hardware build out, with its Cloud and Power Infrastructure segment supplying high density power and liquid cooling gear that big data center customers need right now. Analysts expect revenue and earnings to grow quickly, helped by recent earnings beats, raised guidance in 2026 and 2027, and the planned spin off of the CPI unit that could shine a brighter light on the AI power story. At the same time, high debt, thin margins and heavy reliance on a small group of hyperscalers and co location clients mean losing a major contract or facing tougher pricing would bite hard. Insider selling and rich executive pay only add to the governance questions. For investors who can balance those risks against the growth potential in AI infrastructure, Flex is a stock that may deserve a closer look.

Flex’s AI power story is accelerating, yet the mix of high debt, thin margins, and a planned CPI spin off leaves key questions unanswered. See how those pieces fit together in the analysis report for Flex

Seeking Alternatives Before The Crowd Moves

Markets move fast and the next breakout stocks rarely stay under the radar for long. Scan fresh ideas while it matters, before momentum gets fully caught. Act now.

• Spot potential early breakouts in smaller companies before momentum traders pile in by running the 20 elite penny stocks with strong financials.
• Track where real earnings power supports AI momentum and avoid pure hype by screening through the 69 profitable AI stocks that aren't just burning cash.
• Focus on companies that aim to keep paying investors even when markets are choppy by reviewing the 9 dividend fortresses.

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.