AI is starting to reshape who earns what, from data center owners to entry level office workers wondering if their role is next in line for automation. That split creates risk for wages and consumer demand, but it also focuses attention on companies that provide the picks and shovels for AI infrastructure. This article looks at three large stocks exposed to that trend and how the same news could help or hurt their long term appeal.

The three stocks in this article are just a starting sample, and the full screen surfaced 36 more companies with equally compelling narratives that are not covered here. To identify and analyze those additional AI infrastructure and enabler opportunities, head straight into the AI Infrastructure and Enablers screener.

Kulicke and Soffa Industries (KLIC)

Overview: Kulicke and Soffa Industries supplies the tools and consumables that assemble semiconductor devices, providing bonding, thermocompression and advanced packaging equipment that sits between chip fabrication and final electronics like AI accelerators, sensors and power devices.

Market Cap: US$4.78b

Investors watching the build out of AI infrastructure may find Kulicke and Soffa Industries hard to ignore. The company is a key supplier of assembly and packaging gear for AI chips and high bandwidth memory, with management describing AI as a major technology based opportunity and pointing to early traction in advanced thermocompression and vertical wire solutions. Recent earnings show strong momentum, yet the stock carries some real tension. High non cash earnings, a history of weaker results over five years and heavy insider selling mean the recent surge in demand and bullish analyst growth forecasts will need to keep proving themselves. The real question is whether current AI enthusiasm is already in the price or if the tools cycle still has room to run.

AI tooling momentum at Kulicke and Soffa Industries is grabbing attention, yet the real story may lie in the balance between growth hopes and past volatility. Get the full picture in the 3 key rewards and 2 important warning signs (1 is major!)

Build your own AI infrastructure shortlist

Kulicke and Soffa Industries and the other two AI infrastructure stocks in this article all came from a single screen, but the real edge is creating your own set of filters. Use our customisable Screener to mix valuation, growth, balance sheet strength and risk signals, or tap into our curated Investing Ideas for ready made shortlists.

Nova (NVMI)

Overview: Nova designs and sells metrology and process control systems that help chip manufacturers measure dimensions, materials and film thickness at key steps like lithography, etch, deposition and advanced packaging. These capabilities are critical for producing reliable semiconductors used in AI hardware.

Operations: Nova currently generates about US$937 million in revenue from semiconductor equipment and services.

Market Cap: US$12.49b

Nova sits in the slipstream of AI and automation, supplying the metrology tools chipmakers rely on to keep yields high as designs become more complex and packaging moves into 3D. Recent results show record quarterly revenue and profitability, strong adoption in advanced logic and packaging, and a cash pile of more than US$1.7b. At the same time, the stock carries risks. Earnings growth expectations are high, insiders have been selling and a handful of major customers and regions still drive a large share of demand. For investors who view process control as a key part of AI infrastructure spending, Nova may warrant a closer look to assess how much of that story is already reflected in the price and how durable it might be.

Nova’s record revenue and large cash pile hint at a metrology powerhouse that many AI investors still underappreciate. Get the full story in the 4 key rewards and 1 important warning sign

Arm Holdings (ARM)

Overview: Arm Holdings designs the CPU and AI chip blueprints that sit at the heart of smartphones, cloud data centers, cars and connected devices, then licenses that IP to chipmakers and big tech firms who pay Arm royalties on every unit they ship. Instead of running fabs, Arm focuses on architecture and software that many AI data center and edge chips depend on.

Operations: Arm generates about US$5.156b from semiconductor equipment and services, with revenue spread across major tech regions including the United States, China, Japan, Taiwan, Korea and other countries.

Market Cap: US$301.81b

Arm Holdings sits at the crossroads of two powerful forces. On one side, the news spotlight on AI concentrating wealth highlights how crucial Arm’s IP has become for data centers and on device AI, with record quarterly revenue, data center royalties that more than doubled and AGI CPU demand already above US$2b for fiscal 2027 and 2028. On the other side, the stock trades at a steep premium to cash flow estimates, with heavy reliance on external borrowing, intense regulatory scrutiny and questions about how customers react as Arm moves from neutral IP licensor to direct CPU vendor. For investors tracking AI infrastructure, the mix of rapid earnings growth and stretched expectations makes Arm hard to ignore.

Arm Holdings’ soaring royalty story and premium price tag sit on a knife edge. See how current expectations compare with future AI CPU demand in the analyst forecasts for Arm Holdings, which could reveal the real inflection point.

Seeking Fresh Alternatives Before Others Catch On

Some stocks are already building breakout momentum while most investors are still looking the other way. Use these fresh shortlists before they get crowded and act now.

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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.