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5 Mid-Cap AI Infrastructure Stocks to Buy With Deep Discounted Value
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Key Takeaways
BILL is expanding AI-driven finance tools and investing in agentic AI for SMB automation.
VSH sees rising AI infrastructure demand for power components used in servers and data centers.
TDC offers one of the best autonomous AI platforms for agentic AI whether on-premises or in the cloud.
The artificial intelligence (AI) frenzy continues as the AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. Massive spending on AI infrastructure will dramatically change the world over the next few years in fields like hyperscale automation, robotics, healthcare, energy, materials, financials and cybersecurity.
Here we recommend five mid-cap AI infrastructure stocks for investment. These stocks offer deep discounted value that should reveal over a long time period. Consequently, in the long term, these stocks have the potential to become large caps. At this stage, it should be prudent to invest in these stocks at a lucrative valuation.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
BILL Holdings Inc.
BILL Holdings is broadening its AI-enabled financial operations platform, adding more controlled spend workflows such as BILL Travel while keeping core growth intact. BILL continues to add predictive and generative AI features for SMBs and accountants.
Management has framed the acceleration of AI as an opportunity to solve customer pain points faster and expand the platform’s role across back-office workflows. BILL is investing in agentic AI to move customers from assisted automation to more autonomous finance operations.
BILL Holdings has an expected revenue and earnings growth rate of 12.6% and 14.7%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 1.8% over the last seven days.
BILL Holdings has a P/E ratio of 16.49X compared with 17.45X of the industry. It has a P/S ratio of 2.49X compared with 2.73X of the industry. BILL has a P/B ratio of 1.04X compared with 3.01X of the industry.
Paylocity Holding Corp.
Paylocity Holding benefits from a strong, AI-enabled human capital management platform that improves automation, decision-making and overall user experience, making the solution deeply embedded for mid-market customers.
PCTY’s multi-pronged AI strategy encompasses personalized recommendations, sentiment analysis, predictive workforce insights, and optimized scheduling alongside generative capabilities. PCTY’s AI Assistant is currently available to all clients as part of core HR and Payroll offerings, with expanded functionality rolling out.
PCTY has an expected revenue and earnings growth rate of 7.3% and 4.4%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 2.9% over the last 90 days. Paylocity Holding has a P/E ratio of 13.76X compared with 17.45X of the industry.
Teradata Corp.
Teradata’s prospects are expected to benefit from an improvement in ARR growth rate, cost savings, and productivity measures. Growing workloads on data platforms due to Agentic AI’s 24/7, always-on query potential bodes well for TDC’s prospects as it not only manages the critical enterprise data that powers these AI systems but also delivers the performance required by these AI systems.
TDC believes that it offers the best autonomous AI and knowledge platform for Agentic workloads, whether on-premises or in the cloud. An innovative portfolio that includes QueryGrid data analytics fabric, Enterprise Vector Store, AgentBuilder, and ClearScape Analytics with unified ModelOps capabilities is expected to drive top-line growth.
Teradata has an expected revenue and earnings growth rate of -1.1% and 2.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.1% over the last 30 days.
TDC has a P/E ratio of 12.82X compared with 17.45X of the industry. It has a P/S ratio of 1.88X compared with 3.69X of the industry. TDC has a P/B ratio of 5.71X compared with 15.13X of the industry.
Vishay Intertechnology Inc.
Vishay Intertechnology is entering an upcycle with orders rising across its semiconductor and passive businesses, supported by AI power demand, grid spending and automotive electrification. Backlog expanded in the first quarter and VSH guided higher revenues for the second quarter, reflecting broader program ramps and improving customer visibility.
VSH is seeing increasing participation in AI infrastructure by supplying power management content, including high-voltage MOSFETs, capacitors, power inductors and current-sense resistors used in server power and related systems.
On the first-quarter 2026 earnings call, management stated that demand for AI-related applications remains in place and noted customers are building safety stock, particularly in Asia, to secure supply. VSH is working on next-generation designs in server power, next-generation AI power supplies and power monitoring and control systems, including 800-volt power management for data centers.
Vishay Intertechnology has an expected revenue and earnings growth rate of 8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.9% over the last seven days. VSH has a P/E ratio, P/S ratio and P/B ratio of 69.37X, 1.58X and 2.44X, respectively. All three metrics are in line with the industry average.
Qorvo Inc.
Qorvo is likely to create new growth opportunities in three large global markets, namely, AI-powered mobile devices, data center network infrastructure and aerospace/defense. QRVO’s edge AI processors, people-sensing AI radar technology and key RF components that enable seamless connectivity in AI-powered data centers are major growth products.
QRVO is expanding its opportunities across markets, customers and product categories while maintaining its commitment to technology leadership and productivity gains. QRVO offers the most complete product portfolio, targeting the highest growth segments of its market, including filters, switches and tuners.
QRVO is well-positioned to win some of the industry's highest growth opportunities by leveraging its diversified product portfolio, systems-level expertise, R&D and manufacturing scale and internal assembly and test capabilities.
Qrovo has an expected revenue and earnings growth rate of -5.1% and -2.3%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1% over the last 30 days.
QRVO has a P/E ratio of 13.49X compared with 13.72X of the industry. It has a P/S ratio of 2.21X compared with 2.31X of the industry. QRVO has a P/B ratio of 2.56X compared with 2.18X of the industry.
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5 Mid-Cap AI Infrastructure Stocks to Buy With Deep Discounted Value
Key Takeaways
The artificial intelligence (AI) frenzy continues as the AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. Massive spending on AI infrastructure will dramatically change the world over the next few years in fields like hyperscale automation, robotics, healthcare, energy, materials, financials and cybersecurity.
Here we recommend five mid-cap AI infrastructure stocks for investment. These stocks offer deep discounted value that should reveal over a long time period. Consequently, in the long term, these stocks have the potential to become large caps. At this stage, it should be prudent to invest in these stocks at a lucrative valuation.
Five such stocks are: BILL Holdings Inc. (BILL - Free Report) , Paylocity Holding Corp. (PCTY - Free Report) , Teradata Corp. (TDC - Free Report) , Vishay Intertechnology Inc. (VSH - Free Report) and Qorvo Inc. (QRVO - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
BILL Holdings Inc.
BILL Holdings is broadening its AI-enabled financial operations platform, adding more controlled spend workflows such as BILL Travel while keeping core growth intact. BILL continues to add predictive and generative AI features for SMBs and accountants.
Management has framed the acceleration of AI as an opportunity to solve customer pain points faster and expand the platform’s role across back-office workflows. BILL is investing in agentic AI to move customers from assisted automation to more autonomous finance operations.
BILL Holdings has an expected revenue and earnings growth rate of 12.6% and 14.7%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 1.8% over the last seven days.
BILL Holdings has a P/E ratio of 16.49X compared with 17.45X of the industry. It has a P/S ratio of 2.49X compared with 2.73X of the industry. BILL has a P/B ratio of 1.04X compared with 3.01X of the industry.
Paylocity Holding Corp.
Paylocity Holding benefits from a strong, AI-enabled human capital management platform that improves automation, decision-making and overall user experience, making the solution deeply embedded for mid-market customers.
PCTY’s multi-pronged AI strategy encompasses personalized recommendations, sentiment analysis, predictive workforce insights, and optimized scheduling alongside generative capabilities. PCTY’s AI Assistant is currently available to all clients as part of core HR and Payroll offerings, with expanded functionality rolling out.
PCTY has an expected revenue and earnings growth rate of 7.3% and 4.4%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 2.9% over the last 90 days. Paylocity Holding has a P/E ratio of 13.76X compared with 17.45X of the industry.
Teradata Corp.
Teradata’s prospects are expected to benefit from an improvement in ARR growth rate, cost savings, and productivity measures. Growing workloads on data platforms due to Agentic AI’s 24/7, always-on query potential bodes well for TDC’s prospects as it not only manages the critical enterprise data that powers these AI systems but also delivers the performance required by these AI systems.
TDC believes that it offers the best autonomous AI and knowledge platform for Agentic workloads, whether on-premises or in the cloud. An innovative portfolio that includes QueryGrid data analytics fabric, Enterprise Vector Store, AgentBuilder, and ClearScape Analytics with unified ModelOps capabilities is expected to drive top-line growth.
Teradata has an expected revenue and earnings growth rate of -1.1% and 2.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.1% over the last 30 days.
TDC has a P/E ratio of 12.82X compared with 17.45X of the industry. It has a P/S ratio of 1.88X compared with 3.69X of the industry. TDC has a P/B ratio of 5.71X compared with 15.13X of the industry.
Vishay Intertechnology Inc.
Vishay Intertechnology is entering an upcycle with orders rising across its semiconductor and passive businesses, supported by AI power demand, grid spending and automotive electrification. Backlog expanded in the first quarter and VSH guided higher revenues for the second quarter, reflecting broader program ramps and improving customer visibility.
VSH is seeing increasing participation in AI infrastructure by supplying power management content, including high-voltage MOSFETs, capacitors, power inductors and current-sense resistors used in server power and related systems.
On the first-quarter 2026 earnings call, management stated that demand for AI-related applications remains in place and noted customers are building safety stock, particularly in Asia, to secure supply. VSH is working on next-generation designs in server power, next-generation AI power supplies and power monitoring and control systems, including 800-volt power management for data centers.
Vishay Intertechnology has an expected revenue and earnings growth rate of 8% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.9% over the last seven days. VSH has a P/E ratio, P/S ratio and P/B ratio of 69.37X, 1.58X and 2.44X, respectively. All three metrics are in line with the industry average.
Qorvo Inc.
Qorvo is likely to create new growth opportunities in three large global markets, namely, AI-powered mobile devices, data center network infrastructure and aerospace/defense. QRVO’s edge AI processors, people-sensing AI radar technology and key RF components that enable seamless connectivity in AI-powered data centers are major growth products.
QRVO is expanding its opportunities across markets, customers and product categories while maintaining its commitment to technology leadership and productivity gains. QRVO offers the most complete product portfolio, targeting the highest growth segments of its market, including filters, switches and tuners.
QRVO is well-positioned to win some of the industry's highest growth opportunities by leveraging its diversified product portfolio, systems-level expertise, R&D and manufacturing scale and internal assembly and test capabilities.
Qrovo has an expected revenue and earnings growth rate of -5.1% and -2.3%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1% over the last 30 days.
QRVO has a P/E ratio of 13.49X compared with 13.72X of the industry. It has a P/S ratio of 2.21X compared with 2.31X of the industry. QRVO has a P/B ratio of 2.56X compared with 2.18X of the industry.