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

Four of the “magnificent 7” stocks have decided to invest a massive $380 billion in 2025 as capital expenditure for AI-infrastructure development. This marks a significant 54% year-over-year increase in capital spending on the AI ecosystem. Moreover, these companies have also said that AI capex is likely to increase handsomely in 2026.

Here, we narrowed our search to five AI-centric giants (market capital >$50 billion) that have skyrocketed in 2025 and are suitable for investing in 2026. These are: Amphenol Corp. (APH Quick QuoteAPH - Free Report) , Western Digital Corp. (WDC Quick QuoteWDC - Free Report) , Vertiv Holdings Co. (VRT Quick QuoteVRT - Free Report) , Corning Inc. (GLW Quick QuoteGLW - Free Report) and TE Connectivity plc (TEL Quick QuoteTEL - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong 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. 

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 10.6% and 17.5%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 11.5% in the last 30 days. 

Western Digital Corp.

Western Digital has been witnessing strong execution amid intensified cloud and AI demand. Cloud end market (89% of total revenue) surged 31% in the last reported quarter, driven by strong demand for high-capacity nearline HDDs. WDC doubled shipments of ePMR products up to 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. 

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 second-quarter 2026 revenues of $2.9 billion (+/- $100 million), up 20%, driven by strong data center demand and high-capacity drive adoption.

Western Digital has an expected revenue and earnings growth rate of -12.3% and 49.7%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 10.6% over the last seven days. 

Vertiv Holdings Co.

Vertiv Holdings’ third-quarter performance benefited from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions.

Vertiv is benefiting from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions. CEO Giordano Albertazzi said, "Our 35% sales growth and robust orders momentum reflect both strong market demand and expanded capabilities to serve customers' increasingly complex infrastructure needs."

Buoyed by unprecedented data center growth, VRT is strategically expanding capacity to accelerate its AI-enabled pipeline. The company also benefited from the accelerating digital transformation driven by AI and data center demand. Acquisitions have also played a key role, with Great Lakes enhancing IT systems and white space solutions, and Weeleay boosting service capabilities through real-time machine data analysis and predictive actions.

Vertiv’s partnership with NVIDIA Corp. (NVDA) is a key catalyst. VRT aims to stay one GPU generation ahead of NVIDIA, enabling efficient, scalable power solutions for next-generation AI data centers.  As hyperscalers and enterprises increasingly scale AI deployments to support high-performance data centers, Vertiv’s solutions are gaining traction. 

Vertiv Holdings has an expected revenue and earnings growth rate of 20.3% and 25.6%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 6.6% over the last 30 days. 

Corning Inc.

Corning continues to focus on developing state-of-the-art cover materials, which have been deployed on more than 8 billion devices. Samsung has opted to deploy Corning Gorilla Armor 2 cover material for its latest Galaxy S25 Ultra devices.

GLW offers several products focused on the data center, with a portfolio consisting of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. This augurs well for its long-term growth. 

The growing adoption of innovative optical connectivity products for generative AI applications is expected to be a key growth driver for GLW in the upcoming quarters. Since both consumers and enterprises are using networks more extensively and the data thus generated is increasingly being used to train AI models, there is tremendous demand for quality networking. 

Additionally, data consumption patterns are changing, with a growing propensity to consume video content, creating the need for faster data transfer. Since optical networks are more efficient and most existing networks are copper-based, the demand for GLW’s optical solutions is particularly strong.

Corning has an expected revenue and earnings growth rate of 10.1% and 19.8%, respectively, for next year. The Zacks Consensus Estimate for next year’s earnings has improved 3.8% in the last seven days.

TE Connectivity plc

TE Connectivity has been benefiting from strong Industrial Solutions segment growth driven by strong demand for AI applications. TEL is expected to benefit from strong demand for its solutions in the AI domain as well as energy applications. 

TEL benefits from strength in Asia in the Transportation segment, with increased data connectivity trends and the ongoing growth of the electrified powertrain. TEL’s global manufacturing strategy with 70% localized production is helping the company expand margins and generate free cash flow.

TE Connectivity has an expected revenue and earnings growth rate of 9.2% and 16.6%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for current-year earnings has improved 7.4% in the last seven days.