Baird Identifies Top Stocks in AI and Electrical Infrastructure Build-Out

Investment firm Baird has identified a group of leading companies poised to benefit from the massive build-out of artificial intelligence and electrical infrastructure, singling out firms with strong positions in data center power, advanced cooling technologies, and grid modernization.

The analysis distinguishes between opportunities in the "gray space," which includes electrical infrastructure outside of data halls, and the "white space," which comprises the equipment within the data centers themselves. Baird notes that companies with diverse portfolios spanning power distribution, thermal management, and connectivity are particularly well-positioned to capture growth.

Key Players and Strategic Positioning

Baird's research highlights several companies, noting their specific strengths and market exposure. The firm points to strategic acquisitions, key customer relationships, and technological advantages as critical differentiators in this rapidly expanding sector.

• Flex (FLEX): Its Cloud and Power Infrastructure segment, with $6.6 billion in fiscal 2026 revenue, has a key relationship with NVIDIA for GB200/GB300 power shelves. The segment, which is set to spin off in early 2027, is seeing its embedded power business grow rapidly, with expected growth of 65-75% in fiscal 2027.
• Jabil (JBL): Anchored by a long-term relationship with AWS, Jabil expects total AI revenue to reach $13.6 billion in fiscal 2026. The company has enhanced its capabilities through acquisitions like Hanley Energy for power services and Mikros Technologies for liquid cooling.
• nVent (NVT): Described as a market leader in liquid cooling, nVent has expanded its data center franchise to $1 billion and its power utilities business to a $600 million franchise through strategic acquisitions.
• Vertiv (VRT): A market leader in thermal management with an estimated $3 billion business, Vertiv is expanding from its traditional "gray space" strength into "white space" power rack solutions.
• Forgent (FPS): A specialized manufacturer of custom electrical distribution equipment, the company has seen rapid growth of roughly 85% year-to-date in fiscal 2026 and views the U.S. grid market as a $10 billion opportunity.
• Amphenol (APH): A leader in high-speed connectivity, Baird estimates Amphenol's power business could approach $2 billion. The company is closely aligned with NVIDIA and has significant content on its NVL72 racks.
• TE Connectivity (TEL): The firm expects TE's AI and Cloud revenue to exceed $2.35 billion in fiscal 2026, driven by its leadership in data connectivity and a significant power interconnect business benefiting from the shift to 800VDC racks.
• Littelfuse (LFUS): The company has a unique circuit protection platform and has seen its run-rate data center sales increase approximately five times since early 2025, with significant content leverage still available in high-voltage architectures.

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Market Implications

The analysis from Baird underscores the broad and complex supply chain required to support the AI revolution. Investor focus is expanding beyond semiconductor designers to include the critical infrastructure companies that provide power, cooling, and connectivity solutions.

The significant capital investment in data centers is creating a ripple effect, driving demand for everything from medium-voltage switchgear and power distribution units (PDUs) to advanced liquid cooling systems and high-speed interconnects. Furthermore, the immense power requirements of AI are placing a new focus on modernizing the broader electrical grid, creating a parallel growth vector for companies with exposure to utility spending.