WarrenAI analyzed public companies positioned to benefit from the surge in AI compute demand, relying on Investing Pro inputs including Fair Value, Pro scores, technicals and analyst price targets. The screening highlights five names that represent different approaches to capturing demand from AI deployments: optical component suppliers, contract manufacturers for hardware, AI networking specialists, large-scale data center owners, and established networking incumbents.
How the list was compiled - The selection reflects quantitative measures supplied to WarrenAI, including valuation comparisons to fair value estimates, analyst consensus price targets, multi-year earnings growth rates, technical momentum indicators such as RSI, and balance-sheet metrics including debt-to-equity and cash-flow yields.
1. Lumentum Holdings Inc (NASDAQGS:LITE)
Lumentum stands out as the top-performing optics supplier in the group, recording a 624.7% one-year return and a five-year EPS compound annual growth rate of 154.8%. The company is identified as the sole supplier for Nvidia’s scale-out CPO, positioning it centrally in AI optical interconnects. At the same time, WarrenAI flags concentration risk from large customers such as Nvidia and Google, a negative free cash flow yield and a high debt-to-equity ratio listed at 229.9%.
From a technical perspective, LITE is in a pronounced uptrend with a relative strength index near 75, a level WarrenAI notes as indicative of overbought conditions. The shares trade at $590.22, which is materially above analyst targets of $557.24, underscoring a gap between current market pricing and sell-side valuations.
2. Celestica Inc. (NYSE:CLS)
Celestica is presented as a fast-growing contract manufacturer capitalizing on AI hardware upgrades. The company delivered a 128.6% return over the past year and shows a five-year EPS growth rate of 44.8%. Balance-sheet metrics appear more conservative than some peers, with a debt-to-equity ratio of 35%.
Short-term momentum is described as muted, with an RSI around 47, although monthly technicals remain bullish. Celestica’s shares trade at $279.62 versus an analyst target of $386.15, a spread WarrenAI treats as an attractive risk/reward profile for investors seeking growth at a more reasonable price relative to peers.
3. Arista Networks Inc (NYSE:ANET)
Arista is characterized as the blue-chip option among AI networking stocks, with leadership in AI switching reflected in strong operating profitability and financial health. The company reported EBITDA margins of 42.7%, a one-year return of 28.3% and a five-year EPS CAGR of 21.4%. Arista also receives the highest Pro Score in the screening, at 3.50.
Warnings include an elevated price-to-earnings multiple of 52.3x and customer concentration with key buyers such as Meta and Microsoft. Near-term technicals show some weakness even as longer-term trends remain constructive. ANET is trading at $136.20 compared with analyst targets of $165.99, which places it as a premium-quality business trading above current market prices suggested by some analysts.
4. Equinix Inc. (NASDAQGS:EQIX)
Equinix, the largest global data center platform in the screening, has seen a 5.1% decline over the past year despite generating five-year EPS growth of 20.6%. The firm’s large scale and high EBITDA margins support its aggressive AI and cloud expansion plans, but these initiatives come with notable capital intensity and leverage; the company’s debt-to-equity ratio is reported at 140.2%.
Technically, EQIX displays strong buy signals across key timeframes and shows an RSI above 75 after a 12% single-day gain that followed bullish guidance for 2026. Shares are trading at $972.00 and sit close to analyst targets of $998.38, while also trading above the model’s fair value estimates.
5. Cisco Systems Inc. (NASDAQGS:CSCO)
Cisco is framed as the value-oriented exposure among the five names. The company has posted a 40.1% one-year return and a five-year EPS CAGR of 16.9%. Cisco’s strengths include rising AI order momentum and a 2.4% dividend yield, with a moderate P/E of 27.5x.
Recent headwinds include slowing order growth and an 11.8% share price decline after management issued disappointing guidance. At a price of $75.42, Cisco trades below analyst targets of $87.71 and shows short-term technicals consistent with oversold conditions, which WarrenAI identifies as a potential setup for value-oriented investors despite soft sentiment.
Key points
- WarrenAI used Investing Pro metrics - including Fair Value, Pro scores, technicals and analyst targets - to highlight companies with differentiated exposure to AI infrastructure.
- The five companies span optical components, contract manufacturing, high-performance switching, global colocation platforms, and established networking equipment - reflecting several entry points into AI data center investment themes.
- Sectors impacted include AI infrastructure, data centers and colocation, networking equipment, and optical components - all central to the AI compute supply chain.
Risks and uncertainties
- Customer concentration - Several names have significant exposure to a small number of large customers (for example Lumentum with Nvidia and Google; Arista with Meta and Microsoft), creating revenue and margin volatility risk for the supply-chain and networking sectors.
- Balance-sheet and capital intensity - Companies such as Lumentum and Equinix show high debt-to-equity ratios and heavy capital spending requirements, which could weigh on financial flexibility in capital-intensive segments like data center real estate and optical manufacturing.
- Technical and valuation risks - Some stocks trade above analyst targets or show technical indicators consistent with overbought readings (for example LITE and EQIX with RSI above 75), while others face near-term momentum weakness despite strong fundamentals, illustrating market timing and valuation risks across technology and infrastructure sectors.
Investors reviewing these names should weigh the mix of rapid growth and concentration or leverage risks. The five companies provide varied exposure to the AI data center buildout, but their differing balance-sheet profiles, valuation spreads versus analyst targets, and technical signals underscore the importance of matching exposure to individual risk tolerances.