AI related spending is not just a buzzword theme. Recent US data points to AI focused investment helping to lift overall economic output, even as other costs bite. That shift pulls attention toward the physical backbone that keeps all that computing power switched on. This article walks through three picks and shovel style stocks from the screener that tap into that demand.
The three stocks below are a sample of the idea. The full screen surfaced 51 more AI infrastructure companies with equally compelling stories that are not covered here.
If you want to identify potential high conviction opportunities across this broader group, head straight into the AI Infrastructure Stocks screener .
Marvell Technology (MRVL)
Overview:Marvell Technology designs and sells data infrastructure chips, with a strong focus on high-speed networking and optical interconnects for AI data centers.
Operations:Marvell generates about US$9.5b from integrated circuit design, development and sales, with geographic exposure led by China at roughly US$3.9b.
Market Cap:US$213.6b
Marvell Technology matters for this AI Infrastructure Stocks screener because its networking and optical products help AI data centers move vast amounts of information quickly and reliably, turning raw compute into usable capacity.
"The optical interconnect business is the more stable growth engine: management guided interconnect at 50%+ YoY growth in FY2027, well above the ASIC segment's 20%+ guide. Optical is the thesis, not ASIC alone."
What happens to Marvell's margins and cash generation will largely depend on how one crucial piece of hyperscaler demand actually plays out.
That turning point is exactly what the full narrative for Marvell Technology unpacks, explaining how hyperscaler demand, optical growth and ASIC risk could reshape Marvell Technology's AI positioning.
Seagate Technology Holdings (STX)
Overview:Seagate Technology Holdings supplies high-capacity hard drives and solid-state storage that underpin hyperscale and cloud data centers running AI workloads.
Operations:Seagate generates about US$13.8b from manufacturing and distributing storage solutions, primarily through its mass-capacity hard drive and SSD portfolio.
Market Cap:US$160.5b
Seagate Technology matters for this AI Infrastructure Stocks screener because its nearline HDDs and enterprise SSDs give cloud providers the dense, low-cost storage they need to keep AI training data and inference results available at scale.
"HAMR penetration hitting 50% then 70%. These are dated, specific milestones. They are the cleanest read on engine two, and they are largely independent of the pricing environment."
What happens to Seagate's margins and cash returns will hinge on how that hidden tug of war over storage supply ultimately resolves.
That tug of war is exactly what the full narrative for Seagate Technology Holdings lays out, separating short term swings in storage pricing from Seagate Technology's longer term AI demand story.
Penguin Solutions (PENG)
Overview:Penguin Solutions designs, builds, and runs AI focused data center infrastructure worldwide, wrapping turnkey computing clusters with ongoing managed services.
Operations:Penguin Solutions generates about US$1.7b in revenue, led by US$924 million Integrated Memory, US$559 million Advanced Computing, and US$249 million Optimized LED, with roughly US$759 million from the United States and the rest spread across China, Mexico, Europe, and other regions.
Market Cap:US$3.6b
Penguin Solutions matters for this AI Infrastructure Stocks screener because its Advanced Computing arm helps enterprises and neo cloud providers turn abstract AI plans into powered racks, wired clusters, and supported GPU farms that can run large training and inference workloads.
"Accelerating adoption of AI and high-performance computing across major enterprise verticals is driving robust demand for turnkey compute infrastructure, as evidenced by rising customer bookings and a diversified pipeline."
The key issue is how pressure on future profitability resolves as those AI factories transition from big contracts to more repeatable deployments.
That profitability question is exactly what the full narrative for Penguin Solutions tackles, tracing how Penguin Solutions could turn today's big AI builds into steadier, higher quality earnings power.
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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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