4 Stocks Powering the AI Revolution Behind the Scenes

While hyperscalers like Amazon (AMZN) and chipmakers like Nvidia (NVDA) get a lot of attention in the artificial intelligence (AI) buildout, creating the infrastructure to make AI a reality is often an overlooked investing theme. After all, data centers need land, power systems, connectivity, storage, and cooling systems — and all of those are just as important as Nvidia’s vaunted GPUs or Amazon’s industry-leading cloud.

Nvidia CEO Jensen Huang pointed to this recently in Texas, speaking about the expansion of a Coherent (COHR) manufacturing facility that provides technology needed for AI systems. The facility in Sherman, Texas, is being expanded through a $2 billion partnership between Coherent and Nvidia, and will quadruple the output of the factory that makes material used in lasers that transmit data among computer chips.

“AI factories are the infrastructure of the new industrial revolution,” said Huang.

There could be some great opportunities in these pick-and-shovel AI infrastructure stocks. Let’s look at Coherent and three other names that come to mind.

AI Infrastructure Stock #1: Coherent (COHR)

Headquartered in Saxonburg, Pennsylvania, Coherent works in the field of photonics, which is important for data centers to operate efficiently. Photonics is the process of using light instead of electrons to transmit data, and by doing so, data-center operators can maintain bandwidth and reduce their reliance on traditional copper wiring.

At the Sherman facility, Coherent manufactures photonic devices based on indium phosphide, which is a semiconductor material used to make optical networking components for AI systems.

Coherent's earnings for the fiscal third quarter included revenue of $1.81 billion, up 21% year-over-year (YOY). Net earnings were $191 million, up from $16 million last year, while EPS of $0.97 marked an improvement from a loss of $0.11 a year ago.

Analysts have a consensus “Strong Buy” rating on COHR stock, with the high price target of $465 representing potential upside of 18% from current prices. COHR stock is up a whopping 113% so far this year.

AI Infrastructure Stock #2: NextEra Energy (NEE)

NextEra Energy (NEE) is a Florida-based power company that operates Florida Power & Light, which is the largest electric utility company in the United States. It has been working with major hyperscalers such as Alphabet (GOOGL) to build and power multiple new data centers for Google Cloud. 

The company is also in the midst of acquiring Dominion Energy (D) in a $67 billion deal that would create the world’s largest regulated electric utility company, positioning it to be a key player in modernizing existing power-grid structures and building new generating capacity.

Earnings for Q1 showed revenue of $6.7 billion and adjusted earnings of $2.27 billion, or $1.09 per share, versus adjusted earnings of $2.03 billion, or $0.99 per share, a year ago. Analysts rate NEE stock as a consensus “Moderate Buy” with a mean price target of $97.60, which represents potential upside of 11% from current levels. The stock is up 9% so far this year.

AI Infrastructure Stock #3: Sandisk (SNDK)

Sandisk (SNDK) definitely isn’t flying under the radar. The data-storage company is the best-performing stock in the Nasdaq-100 this year, with gains of more than 700% year-to-date (YTD). SNDK stock has been absolutely on fire since it was spun off from Western Digital (WDC) in February 2025, gaining more than 5,000% in that period.

Sandisk makes products for flash and advanced memory computer storage, and its storage solutions are increasingly being used in data centers to house the data needed to run high-level AI programs.

Earnings for fiscal Q3 showed revenue of $5.95 billion, up 251% YOY. Net income came in at $3.6 billion versus a loss of $1.9 billion a year ago, with diluted EPS at $23.03. 

Analysts who cover SNDK stock have a consensus “Strong Buy” recommendation. The average price target of $1,863.06 represents potential downside of 3% from current levels, but that’s more of a reflection of outdated price targets than anything else. In short, Sandisk stock is rising so fast that analysts can’t keep up with the action.

AI Infrastructure Stock #4: Caterpillar (CAT)

You may not think about a traditional construction company as an AI infrastructure play, but Caterpillar (CAT) — based in Irving, Texas — is well-positioned to capitalize on the growing industry. 

Caterpillar is much more than a construction company. It provides industrial gas turbines and fast-response natural gas generators to provide continuous power for AI workloads, as well as standby generator sets. Data-center power generation has become one of Caterpillar’s fastest-growing business sectors.

Revenue in Q1 was $17.4 billion, up 22% YOY, while EPS of $5.47 was up from $4.20 per share in Q1 2025. The company’s power segment saw revenue of $5.78 billion, up 22%, while the construction segment brought in $5.18 billion, up 38% YOY.

CAT stock is up 74% so far this year and has a consensus “Moderate Buy” rating based on 24 analysts with coverage. The high price target of $1,165 represents potential upside of 17% from here.