The artificial intelligence (AI) saga, supported by the massive growth of cloud computing and data centers, is yet to unfold fully. The demand for data center capacity surged to manage and store the vast amount of cloud computing-based data. 

The AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. According to a report by Bloomberg Intelligence, “The generative AI market is poised to explode, growing to $1.3 trillion over the next 10 years from a market size of just $40 billion in 2022.”

On Aug 26, the International Data Corporation’s (IDC) Worldwide Artificial Intelligence IT Spending Market Forecast reported that global AI spending will grow by 31.9% from 2025 to 2029. Spending on AI, especially agentic AI, will reach around $1.3 trillion by 2029, indicating 26% of global IT spending. 

To reap the benefits of this enormous opportunity, we recommend that investors buy five large AI-powered data center and cloud infrastructure developers. These stocks have skyrocketed in 2025 providing returns of more than 45%. Despite this, their current favorable Zacks Rank indicates more potential for growth in the near term. 

These five stocks are: Amphenol Corp. (APH Quick QuoteAPH - Free Report) , Western Digital Corp. (WDC Quick QuoteWDC - Free Report) , Celestica Inc. (CLS Quick QuoteCLS - Free Report) , Jabil Inc. (JBL Quick QuoteJBL - Free Report) and Comfort Systems USA Inc. (FIX Quick QuoteFIX - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Amphenol Corp. 

Zacks Rank #1 Amphenol provides connectivity solutions using AI and ML (machine learning) technologies. It provides AI-powered high-density, high-speed connectors and cables, and interconnect systems optimized for signal integrity and thermal performance. 

APH benefits from a diversified business model. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. The company is a dominant force in AI-powered data center interconnects, commanding an estimated 33% market share. APH’s advanced fiber-optic and high-density interconnect solutions are now essential for hyperscale data centers and 5G deployments. 

Expanding spending on both current and next-generation defense technologies bodes well for APH’s top-line growth. Apart from Defense, Amphenol’s prospects ride on strong demand for its solutions across Commercial Air, Industrial, and IT Datacom. Solid demand for high-speed and power interconnect products, which are critical components in next-generation IT systems, creates a long-term growth opportunity. 

Rising AI workloads and cloud infrastructure upgrades are fueling demand for high-speed interconnects. This momentum is expected to support the Communications Solutions segment. Electrification in transportation and increasing electronic content in medical devices are driving the adoption of APH’s cable assemblies and sensor-based systems. These drivers are expected to support steady growth in the Interconnect and Sensor Systems segment. 

Amphenol has an expected revenue and earnings growth rate of 41.5% and 59.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% in the last 30 days. 

Western Digital Corp.

Zacks Rank #1 Western Digital has been witnessing strong execution amid intensified cloud and AI demand. Cloud end market (90% of total revenue) surged 36% in the last reported quarter, driven by strong demand for high-capacity nearline HDDs. WDC doubled shipments of 26TB CMR and 32TB UltraSMR drives and is on track to ramp up HAMR drives in the first half of 2027.

WDC expects the proliferation of generative AI-driven storage deployments to result in a client and consumer device refresh cycle, and boost content creation and storage in smartphone, gaming, PC and consumer electronics in the long run. The increasing AI adoption is likely to drive increased storage demand across both HDD and Flash at the edge and core, thereby providing ample business opportunities. 

Generative AI adoption surged to 65% in 2024 from 33% in 2023. Gen AI adoption is driving eSSD sales due to its speed, reliability and efficiency over HDDs. Growing AI data boosts demand, fueling eSSD market growth and reshaping storage.

Agentic AI is driving future data growth, while its platform business is gaining traction among native AI firms and SaaS providers. WDC expects fiscal first-quarter 2026 revenues of $2.7 billion (+/- $100 million), up 22%, driven by strong data center demand and high-capacity drive adoption.

Western Digital has an expected revenue and earnings growth rate of -17.8% and 31.9%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 13.4% in the last 60 days. 

Celestica Inc.

Zacks Rank #1 Celestica is one of the largest electronics manufacturing services (EMS) companies in the world, serving OEMs, cloud-based and other service providers, and business enterprises across several industries. CLS offers a comprehensive range of manufacturing and supply-chain solutions that support various customer requirements, from low-volume, high-complexity custom products to high-volume commodity products.

Celestica is benefiting from healthy demand trends in the Connectivity & Cloud Solutions segment. The growth is primarily backed by CLS’ strength in Hyperscaler Portfolio Solutions networking business and optical programs, especially increasing demand for 800G and 400G network switches. 

CLS has established itself as a dominant player in the rapidly expanding AI infrastructure market. Per Grandview Research, the AI infrastructure market is projected to reach $223.45 billion by 2030 at a compound annual growth rate of 30.4% from 2024 to 2030. Celestica is rapidly expanding its portfolio offering to capitalize on this market trend.

The growing proliferation of AI-based applications and generative AI tools is fueling solid AI investments across the technology ecosystem. This, in turn, is driving demand for CLS’ enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions and servers and storage-related products.

Celestica has an expected revenue and earnings growth rate of 20.6% and 43%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 9.9% in the last 60 days. 

Jabil Inc. 

Zacks Rank #2 Jabil is one of the largest global suppliers of EMS solutions. JBL offers electronics design, production, product management and after-market services to customers in more than a dozen industry verticals. 

JBL has been benefiting immensely from healthy momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce business verticals. Its focus on end-market and product diversification is a key catalyst. Jabil’s target that “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. 

With a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its focus on end-market and product diversification is a key catalyst. JBL’s top-line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets. 

JBL is set to invest $500 million over the next several years to expand its manufacturing capabilities for the AI data center vertical. This will significantly boost the company’s position in the AI hardware supply chain. JBL’s unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good standing. 

Massive application of generative AI is set to drastically increase the efficiency of JBL’s automated optical inspection machines for the automation industry. A large-scale portfolio of business sectors offers JBL a high degree of resiliency during times of macroeconomic and geopolitical disruption.

An extensive global footprint is further strengthened by a centralized procurement process, which, coupled with a single Enterprise Resource Planning system, aids customers with end-to-end supply-chain visibility. A worldwide connected factory network enables JBL to scale up production per the evolving market dynamics. 

Management’s focus on improving working capital management and integration of sophisticated AI and ML (machine learning) capabilities to enhance the efficiency of its internal processes is a major tailwind.

Jabil has an expected revenue and earnings growth rate of 6.1% and 17.8%, respectively, for the current year (August 2026). The Zacks Consensus Estimate for current-year earnings has improved 0.3% in the last 60 days. 

Comfort Systems USA Inc.

Zacks Rank #1 Comfort Systems USA is a national provider of comprehensive heating, ventilation and air conditioning (HVAC) installation, maintenance, repair and replacement services. FIX operates primarily in the commercial and industrial HVAC markets, and performs most of its services within manufacturing plants, office buildings, retail centers, apartment complexes, and healthcare, education and government facilities.

The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for the specialized HVAC solutions of FIX. Cooling systems for these facilities must deliver precise and reliable performance, prompting investments in advanced technologies like liquid cooling and modular units. 

This segment is becoming a significant growth driver for FIX, offering high-margin opportunities and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche.

Comfort Systems USA has an expected revenue and earnings growth rate of 13.9% and 44.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.8% in the last 60 days.