Top AI infrastructure stocks to watch, according to Baird
Baird highlighted AI and electrical infrastructure stocks it says have specific advantages in the AI buildout. It named Littelfuse (LFUS) as a top pick, citing high-voltage data center design wins and Q2 2026 adjusted EPS of $4.19 on $739M revenue. It also covered nVent (NVT), Amphenol (APH) and Jabil (JBL), citing earnings, outlook and catalysts.
How this was made
The 30-second read
Why it matters
The article provides company-specific datapoints (2Q26 results, outlook/earnings beats, and in one case a new repurchase authorization) but is primarily an analyst “top stocks to watch” framing rather than a single fresh market-moving event.
Market read
Useful for traders tracking AI infrastructure factor rotation (power, cooling, connectivity) and for monitoring near-term catalysts like buybacks and earnings/outlook beats, but it is not a single decisive new disclosure.
What to watch
Execution risk (ramp timing, utilization, and customer qualification), competitive pricing pressure in components, and whether design wins translate into sustained revenue beyond 2027-2028 assumptions.
Background
Baird’s note identifies electrical and AI infrastructure names it believes have specific technological advantages amid July volatility and potential moderation in broader spending.
Ticker impact
Baird calls Littelfuse a top AI-infrastructure pick, citing 2-4x per-megawatt data-center content from high-voltage penetration and 2Q26 beats.
Bias toward relative outperformance versus generic AI-electrification peers if the market rewards high-voltage design-win momentum.
The article provides specific 2Q26 adjusted EPS and revenue beats plus design-win concentration in high-voltage applications, but it is still an analyst watchlist framing rather than a new company disclosure.
Baird highlights nVent’s liquid-cooling shift, noting mid-stream Blaine, Minnesota capacity expansion and an additional facility for upside visibility into 2027-2028.
Potential near-term support if investors continue to rotate into liquid-cooling beneficiaries after the oversold-to-rebound setup.
The text includes earnings/outlook topping expectations and raised full-year outlook plus PT increases, but the piece is still a multi-name strategy note.
Baird frames Amphenol as benefiting from server replacement cycles, citing stronger-than-expected 2Q26 results and added fiber presence after the CommScope acquisition.
Moderately positive bias if the market accepts the server-cycle read-through and rewards underappreciated high-voltage leverage.
While the article includes a concrete 2Q26 EPS and sales figure, it does not add a fresh APH-specific catalyst beyond the already-reported results and analyst framing.
Baird’s AI-infrastructure focus on Jabil includes a newly authorized $1.5B share repurchase program and a third hyperscaler relationship, alongside 50% sustained growth potential.
Supportive for the stock if buyback credibility and incremental hyperscaler wins are viewed as durable demand signals.
The article discloses a specific board action (repurchase authorization) and a third hyperscaler relationship, which are actionable company-specific facts, but it remains a watchlist-style piece.
Market effects
Reinforces a “picks-and-shovels” AI infrastructure narrative focused on power delivery (high-voltage), liquid cooling, and connectivity rather than broad capex beta.
Highlights nVent’s Blaine, Minnesota capacity expansion as a US manufacturing execution point for data-center cooling demand.
Supports global AI buildout supply-chain demand themes, especially for hyperscaler-linked components and data-center power/cooling architectures.
Counterpoint
These are analyst watchlist selections; the core claims may already be partially priced, and the “floor for growth” argument could weaken if hyperscaler capex slows more than expected.
Key entities
- analyst_firmBaird
Identifies AI infrastructure stocks with competitive advantages and assigns second-half 2026 “best idea” labels to several names.
- companyLittelfuse
Positioned around high-voltage data-center penetration with reported 2Q26 adjusted EPS and revenue beats.
- companynVent Electric
Positioned around liquid cooling with Blaine, Minnesota capacity expansion and reported 2Q26 earnings/revenue outperformance.
- companyAmphenol
Positioned around connectivity tied to server replacement cycles, with reported 2Q26 results and fiber leverage after CommScope.
- companyJabil
Positioned around hyperscaler-linked data center and AI growth, with a $1.5B repurchase authorization and a third hyperscaler relationship.
