3 AI Infrastructure Stocks Riding The Data Center Spending Boom

AI data centers are pulling in huge amounts of capital, yet a large share of the commitments that support this buildout sits off balance sheet. That gap between visible and hidden obligations is starting to worry some investors, and create curiosity for others. This article looks at how that story connects to 3 stocks from the AI Infrastructure Providers screener that appear positively exposed to this surge in spending.

The three stocks below are just a starting sample from this theme, while the full screen surfaced 35 more companies with equally compelling narratives that are not covered here. To identify and analyze your own highest conviction angles on this trend, head straight into the AI Infrastructure Providers screener.

QXO (QXO)

QXO is a building products distributor that supplies roofing, siding, waterproofing and related materials to contractors, builders, building owners and retailers across the United States and Canada. The company reports all its revenue in a single data processing segment of about US$8.6b and has a market cap of roughly US$16.8b, which puts it firmly in large cap territory.

QXO gives you exposure to two big stories at once. The first is a large scale roll up of building products distribution, backed by a management team with a long track record of executing complex acquisition programs and now integrating TopBuild to deepen its North American reach. The second is the growing need for power heavy data centers, where QXO already supplies industrial and electrical infrastructure that hyperscalers are racing to build out, even as their off balance sheet commitments raise questions about long term risk. The catch is that QXO is still loss making, relies heavily on external funding, has seen meaningful shareholder dilution and is carrying a complicated capital structure. As a result, any potential upside from forecast growth and expected margin improvements comes with execution and balance sheet risk that investors need to weigh carefully.

QXO’s roll up story in building products and data center infrastructure is accelerating, yet its complex funding and losses still raise questions. Get the full picture with the 2 key rewards and 1 important major warning sign

Build your own AI infrastructure shortlist

QXO and the other two AI infrastructure stocks in this article all surfaced from a single screen, but the real edge comes when you design your own filters. Use our flexible Screener to mix metrics like valuation, growth, balance sheet strength and risk, or tap into curated themes through our Investing Ideas.

Toromont Industries (TSX:TIH)

Toromont Industries supplies and services heavy equipment, power systems and industrial refrigeration, with a market cap of about CA$18.0b. Most revenue comes from the Equipment Group at roughly CA$5.0b, with the CIMCO refrigeration and thermal management business adding about CA$526 million. Together, these segments tie Toromont closely to construction, mining, infrastructure and power projects across North America.

Toromont Industries is positioned in the slipstream of AI data center growth because it supplies the Caterpillar power systems, enclosures and backup generation that keep hyperscaler facilities running. Management has highlighted a strong multi year backlog, including a CA$1b power systems order largely tied to data centers, and is ramping AVL capacity with a new Ontario facility planned for 2027. The company pairs this growth story with rising service and rental income, which can help smooth cycles, but investors still need to weigh a premium valuation, reliance on external borrowing and the risk that heavy investment in AVL and data center capacity could overshoot demand if hyperscalers pull back.

Toromont Industries’ AI data center backlog is growing fast, yet few investors seem to connect that story with its rising service and rental mix. See how the analyst forecasts for Toromont Industries could change the risk profile in ways the market has not fully priced in.

Allegro MicroSystems (ALGM)

Allegro MicroSystems designs and sells sensor and power integrated circuits that help control motion, manage power and measure current in complex systems across automotive, industrial, robotics and AI data center markets. The company currently reports about US$945.9 million in revenue from a single segment that covers the design, development, production and distribution of its IC portfolio, and it has a market cap of roughly US$8.2b.

Allegro MicroSystems sits at the intersection of AI infrastructure and electrification, supplying current sensors and motor drivers that are being used in higher power AI racks, advanced cooling systems and next generation EV platforms. Rapidly growing data center exposure, including record sales and rising content per rack, is one of the big draws for investors who see AI capex shifting deeper into power electronics. At the same time, the stock carries a premium valuation, has seen significant insider selling and faces rising competition in China, along with heavy reliance on automotive demand. For investors willing to balance those pressures against strong design win momentum and margin progress, Allegro’s story is worth a closer look.

Allegro MicroSystems’ AI data center exposure and rising content per rack could be the real story investors are missing. See how the analyst forecasts for Allegro MicroSystems compares that opportunity with the competitive and valuation pressures that matter most.

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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.

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