AI Data Centers Are Driving Business For These Tech Infrastructure Stocks

Companies providing infrastructure technology for AI data centers have posted strong third-quarter results. That’s been a positive for stocks such as Vertiv (VRT), Amphenol (APH) and Celestica (CLS).

On Thursday, at least six Wall Street analysts raised their price targets on Vertiv stock after the company’s third-quarter earnings report. The Westerville, Ohio-based firm early Wednesday beat estimates for Q3, though its Q4 sales guidance was a tad below views.

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Late Wednesday, industry peers Amphenol and Celestica delivered beat-and-raise quarterly reports. Both noted a sales lift from data centers running artificial intelligence applications.

Vertiv Chief Executive Giordano Albertazzi said Vertiv benefited in the third quarter from sales of digital infrastructure solutions for AI data centers, including power and thermal management systems.

“We are excited about the year ahead,” Albertazzi said on a conference call with analysts. “The market is strong and we’re certainly feeling the AI tailwinds that should continue to strengthen next year.”

On the stock market today, Vertiv stock rose 1.5% to close at 110.03.

Vertiv Stock Is ‘Leading AI Infrastructure Player’

Oppenheimer analyst Noah Kaye reiterated his outperform rating on Vertiv stock and raised his price target to 121 from 115.

“We regard Vertiv as a leading AI infrastructure player with sustainable competitive differentiation in data center power and thermal management, positioned well for growth and wallet share gains as compute density increases,” Kaye said in a client note.

Elsewhere on Wall Street, Amphenol and Celestica shares rose Thursday after their Q3 reports.

Amphenol stock climbed 1.9% to close at 69.80. Celestica stock rocketed 18.2% to 67.94.

In the third quarter, Amphenol’s adjusted earnings rose 28% year over year to 50 cents a share while sales increased 26% to $4.04 billion.

Meanwhile, Celestica reported Q3 adjusted earnings of $1.04 a share, up 60%, and sales of $2.5 billion, up 22%.

Amphenol makes electrical and electronic connectors, cable assemblies, sensors, antenna systems, power distribution products and other components. It serves such industries as information technology, communications, automotive, defense and aerospace.

Celestica is an electronics contract manufacturer serving information technology, communications, aerospace and defense, health tech and other industries.

Vertiv stock is on three IBD lists: IBD 50, Big Cap 20 and Leaderboard. Celestica is on two lists: IBD 50 and Tech Leaders. Amphenol is on the Big Cap 20 list.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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