Intel Stock And 2 AI Infrastructure Plays For Data Center Growth

Computing power has become the new real estate story, as money chases the physical pipes, chips and power needed to keep AI running. With Blackstone talking about a $200b push into data centers and backing massive AI infrastructure deals, investors risk watching a new asset class form from the sidelines. This article breaks down 3 stocks tied to that trend and how this news could matter for your portfolio.

The three stocks below are just a sample of what this AI infrastructure theme touches. The full screen surfaced 35 more companies with equally compelling narratives that do not fit into a short article like this. If you want to identify your own highest conviction angles on this trend, head straight into the AI Data Center and Infrastructure Enablers screener

Semtech (SMTC)

Overview: Semtech designs low power semiconductors and cloud connectivity gear that help move data efficiently inside AI ready data center networks.

Operations: Semtech generates about $401 million from Signal Integrity, $409 million from Analog Mixed Signal and Wireless, and $365 million from IoT Systems and Connectivity, with substantial sales into China, wider Asia Pacific and the United States.

Market Cap: US$16.1b

For the AI Data Center and Infrastructure Enablers theme, Semtech matters because its chips sit inside the high speed connections that keep GPU heavy server farms fed with data.

"Accelerating demand from hyperscale data centers and AI infrastructure is driving robust, multi-year growth across Semtech's high-margin data center business, supported by design wins in advanced optical (FiberEdge), low-power (LPO), and active copper interconnects (CopperEdge/ACC)."

What happens to Semtech’s earnings power if a single assumption about future high speed interconnect content per rack proves too optimistic?

If that earnings sensitivity worries you, read the full narrative for Semtech to see how Semtech’s AI data center story could still accelerate from here.

Intel (INTC)

Overview: Intel develops and manufactures chips and server platforms that power personal computers, AI ready data centers, and cloud infrastructure worldwide.

Operations: Intel generates about US$33.3b from Client Computing and Physical AI, US$20.2b from Data Center and AI, and US$19.9b from Intel Foundry.

Market Cap: US$515.5b

Intel matters for this AI infrastructure screen because its CPUs, accelerators, and foundry ambitions are directly involved in the buildout of hyperscale data centers that Blackstone and others are funding.

"Intel plans to strengthen customer trust in its foundry services by ensuring reliability and customer service, potentially leading to an increase in foundry revenue as the company builds its reputation and customer base."

This raises the question of what happens to Intel’s margin story if one large assumption about how quickly that foundry capacity fills proves too optimistic.

That margin question is exactly what the full narrative for Intel unpacks, mapping where Intel’s foundry push could accelerate, stall, or quietly reshape the whole AI data center story.

Jabil (JBL)

Overview: Jabil provides engineering, manufacturing, and supply chain services that build servers, networking gear, and other hardware for large scale AI data centers.

Market Cap: US$33.3b

Jabil matters for this AI Data Center and Infrastructure Enablers theme because it builds the physical server and rack level hardware that turns cloud operators’ capital into real computing capacity on the floor.

"AI related infrastructure programs, with AI revenue guided from about US$9b in fiscal 2025 to roughly US$14.4b in fiscal 2026 and US$22.1b in fiscal 2027 along with an expanded set of hyperscale customers above US$1b each, point to a growing mix of higher value Intelligent Infrastructure work that can lift revenue and core operating margins."

What happens to Jabil’s earnings power if one assumption about how quickly that higher value work turns into durable margin proves too optimistic?

If that risk is on your mind, read the full narrative for Jabil to see how Jabil’s AI push could turn sensitivity into lasting earnings power.

Seeking Alternatives Before The Crowd

Fresh breakout themes rarely stay under the radar for long. Once momentum catches, prices move and the clean entry points start dropping away. Scan new ideas now and consider them before they become widely followed.

• Identify income-focused candidates built for stability while you review the 7 dividend fortresses that could help support your returns when growth stories take a breather.
• Explore the next materials cycle by reviewing the 16 top copper producer stocks that are connected to long term demand for electrification and infrastructure buildouts.
• Follow developments in automation by examining the curated 91 robotics and automation stocks that may benefit as more industries shift to robots and smart manufacturing.

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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