3 AI Infrastructure Stocks for the Data Center Bandwidth Boom

AI data centers are consuming bandwidth at a pace the old internet never had to handle, and Lumentum’s order book locked out to 2029 is a clear sign of that strain. Supply looks tight, capital spending looks heavy, and the companies that keep this traffic flowing are suddenly in the spotlight. This article walks through three stocks exposed to that AI connectivity story so you can decide whether they belong on your watchlist.

The three stocks in this article are just a starting sample. The full screen surfaced 43 more companies with equally compelling narratives that are not covered here.

If you want to identify, compare, and analyze the highest conviction optical and high speed connectivity plays, head straight into the AI Data Center Connectivity & Network Infrastructure screener.

Lite-On Technology (TWSE:2301)

Overview: Lite-On Technology designs and manufactures optoelectronic components and power systems used in data centers, servers, networking gear, and related electronics worldwide.

Operations: Lite-On generates most revenue from the Cloud and Internet of Things Department at NT$94.6b, with additional sales from information electronics and photoelectric units.

Market Cap: NT$675.1b

Lite-On Technology sits right where AI data traffic meets physical hardware, supplying power and connectivity gear that large cloud providers rely on to keep new GPU clusters running.

"The accelerating expansion of global data centers, driven by surging cloud/AI workloads, is fueling strong demand for Lite-On's high-power AI server components (PSUs, BBUs, integrated racks, cooling solutions). Management projects that AI-related revenues will rise from 15 to 20% of total in 2025 to at least 25% in 2026, directly supporting robust top-line growth and higher average selling prices over the next several years."

The path this shift in Lite-On Technology’s product mix takes from here could have a meaningful impact on future margins and earnings resilience.

That mix shift is only the starting point, and the full narrative for Lite-On Technology lays out how Lite-On Technology’s AI exposure could evolve, where risks cluster, and what the market might be missing.

ADTRAN Holdings (ADTN)

Overview: ADTRAN Holdings builds fiber access, optical transport, and cloud-managed networking gear and software that connect broadband users to high-speed data centers.

Operations: ADTRAN Holdings generates about US$946 million from Network Solutions and US$192 million from Services & Support, primarily across the US and Europe.

Market Cap: US$608 million

ADTRAN Holdings matters for this AI data center connectivity theme because its fiber, optical, and network software portfolio sits at the junction where bandwidth from cloud clusters moves into carrier and broadband networks.

"An extended period of elevated interest rates and tighter access to lending markets may constrain the capital expenditure budgets of telecom service providers. This would limit demand for ADTRAN Holdings' fiber and optical network equipment and could stall future revenue growth, especially as much of the current momentum relies on aggressive network investment cycles."

Future returns for ADTRAN Holdings could hinge on how one unresolved pressure shapes the balance between fast optical demand and funding capacity.

That tension between demand and budgets is exactly what the full narrative for ADTRAN Holdings unpacks in detail, examining how ADTRAN Holdings could respond if funding constraints start to ease.

Vishay Intertechnology (VSH)

Overview: Vishay Intertechnology manufactures discrete semiconductors and passive components that feed into networking, communications, industrial and data center hardware worldwide.

Operations: Vishay Intertechnology generates most revenue from Resistors at US$803.8 million and MOSFETs at US$702.6 million, with Asia contributing US$1.4b.

Market Cap: US$5.3b

Vishay Intertechnology matters for this AI connectivity screen because its power devices and passives sit inside the servers, switches and power systems that hungry optical links depend on.

"With major multi year investments in capacity expansion now supported by nearly $900m already deployed, a planned 2026 capex range of $400m to $440m, and new Western facilities such as the German 12 inch fab and Newport UK fab ramping, Vishay Intertechnology is building headroom for future revenue and operating leverage as utilization improves."

What really moves the needle for Vishay Intertechnology from here is how one quiet swing factor feeds through into future margin power.

That quiet swing factor starts with capacity, and the full narrative for Vishay Intertechnology explains how Vishay Intertechnology could turn today’s build out into accelerating earnings power with carefully managed risk.

Seeking Alternatives Before Momentum Flies

Fresh ideas do not stay quiet for long. Breakout stories gain momentum, laggards get caught, and information goes stale fast. Scan these under the radar picks and act now.

• Spot resilient performers early by reviewing the curated 222 resilient stocks with low risk scores that aim to keep portfolio swings in check while momentum builds elsewhere.
• Back future cash generators by working through the hand picked 39 profitable AI stocks that aren't just burning cash before prices start flying on the next wave of AI enthusiasm.
• Anchor income plans with the focused 223 dividend fortresses and assess which high yield payers still offer room before wider markets catch on.

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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