The artificial intelligence (AI) market has been a topic of intense discussion for over three years, capturing the attention of investors and Wall Street alike. With major players in the AI field, such as Nvidia, experiencing monumental growth—over 1,000% in the past three years—it’s easy to believe that the biggest names are the only ones worth investing in. However, experts suggest that some less prominent companies involved in building the essential infrastructure for AI could offer significant investment opportunities.
According to recent insights from The Motley Fool, many AI investors remain optimistic, with plans to either hold or expand their positions. This sentiment indicates that there is potential for new winners to emerge from the infrastructure sector, particularly among those companies providing the foundational technology that supports AI functionality.
Hewlett Packard Enterprise (HPE) is positioned as a critical player in this space. While not as flashy as Nvidia, HPE focuses on integrating chips into the AI supercomputers essential for enterprises, governments, and research labs. The company has cemented its place in the industry with six of the ten most powerful supercomputers globally, largely due to its acquisition of Cray in 2019. HPE’s business has seen significant growth as it continues to assemble cutting-edge technology into functional systems. Notably, its stock currently trades at a reasonable valuation, making it an attractive option for investors looking for exposure to AI without the inflated prices associated with more heralded names.
Similarly, Schneider Electric is emerging as an indispensable entity within the AI data center ecosystem. Although not widely recognized in investment circles, Schneider is involved in power distribution and cooling systems that are essential for the operation of data centers that house Nvidia’s chips. The company, with a valuation close to $155 billion and operations that span globally, supports many top cloud computing and AI software giants by supplying the necessary infrastructure. Schneider’s products are ubiquitous in data centers yet remain largely unnoticed by the average investor.
Together, HPE and Schneider represent a crucial yet understated segment of the AI investment landscape. As discussions of the AI revolution continue to dominate the financial scene, these firms provide vital support, positioning them as potential winners in a market often focused on headline-grabbing tech names. The shifting focus toward infrastructure could reveal significant investment opportunities in what many might overlook amidst the more glitzy advancements in AI technology.
