The article identifies three growth stocks positioned for long-term outperformance: Sterling Infrastructure, benefiting from AI infrastructure buildout with 51% YoY revenue growth; AeroVironment, a drone maker gaining military contracts amid geopolitical tensions; and Vertiv, a liquid cooling solutions provider with strong ties to Nvidia and 80% revenue from AI infrastructure.

AI stocks are showing divergent performance in 2026. While major AI spenders (hyperscalers) like Microsoft, Meta, and Nvidia have declined, companies in the AI supply chain—chipmakers and data center equipment manufacturers—are soaring. The market appears to be rewarding near-term beneficiaries of AI spending rather than the big spenders themselves, though the author believes this presents a buying opportunity for long-term AI investors.

Vertiv, a power delivery and cooling infrastructure provider for data centers, is experiencing explosive growth driven by AI hyperscaler spending. The company's organic orders surged 252% year-over-year while backlog climbed 109%, significantly outpacing 19% revenue growth. With Wall Street projecting 34% growth for 2026 and the AI build-out expected to continue through 2030, Vertiv's software component promises sustained subscription revenue. However, the analyst rates it as an 'OK buy' due to its premium valuation, suggesting better opportunities exist in the sector.

Edge AI, which deploys artificial intelligence directly into physical devices, is emerging as the next major AI investment wave. The market is projected to grow from $11.8 billion in 2025 to $60 billion by 2030. Three companies across different risk profiles are positioned to benefit: Honeywell (established industrial player), Vertiv (thermal infrastructure specialist), and One Stop Systems (defense-focused micro-cap).

After a strong 2025, many AI stocks have stalled as investors demand profitability over hype. The market is now differentiating between companies with solid earnings (like data center operators) and those with inflated valuations relative to profits. Power efficiency is becoming a critical factor in AI infrastructure investments.

As global AI infrastructure spending is projected to nearly triple to $902 billion by 2029, three key data center suppliers are positioned for growth. Dell benefits from a record $43 billion server backlog and trades at a low valuation multiple. Nebius Group is expanding rapidly with 830% year-over-year AI cloud revenue growth. Vertiv supplies critical cooling and power solutions with strong order growth and guidance for 28% organic sales growth in 2026.

Vertiv Holdings is positioned to capitalize on the growing demand for liquid cooling solutions in AI data centers. The company has a strong $15 billion order backlog, achieved 47% earnings growth in 2025, and expects 42-45% growth this year. With liquid cooling demand projected to grow at 31.5% annually through 2033, Vertiv is recommended as a solid growth stock trading at less than 10 times sales.

The S&P 500 completed its quarterly rebalancing with four new additions and four removals effective March 23, 2026. Three AI-related stocks—Lumentum, Coherent, and Vertiv—joined the index alongside EchoStar. These companies have shown strong recent performance driven by data center buildout trends, including optical networking and cooling solutions. NVIDIA's $2 billion investments in Lumentum and Coherent underscore the importance of these technologies for future data center infrastructure.

Nvidia's networking revenue surged 263% year-over-year, signaling that AI infrastructure demand extends beyond GPUs across the entire supply chain. The article highlights three key beneficiaries: Nvidia itself with $11 billion in networking revenue, Arista Networks with record $9 billion revenue and AI networking revenue expected to double to $3.2 billion in 2026, and Vertiv Holdings with 252% surge in orders and a $15 billion backlog, driven by power management and cooling needs for AI data centers.

Equinix (EQIX), a real estate investment trust specializing in data center properties, is positioned as an attractive investment to capitalize on the AI-driven data center infrastructure boom. With projected capex reaching $602 billion this year and a potential $3 trillion infrastructure investment supercycle by 2030, Equinix offers steady recurring revenue, 11 consecutive years of dividend increases, and strong fundamentals including $9.2 billion in revenue and 10% projected growth for 2026.

Vertiv Holdings announced manufacturing capacity expansions across the Americas to support AI data center infrastructure growth, with facilities in South Carolina, Pennsylvania, and Mexico expected to significantly boost production. The company also agreed to acquire ThermoKey to enhance its thermal management and cooling capabilities. Shares were up 3.33% at $255.47, approaching their 52-week high, though technical indicators suggest near-term momentum may be fading despite the strong longer-term uptrend.

While AI stocks broadly face headwinds due to valuation concerns, AI infrastructure providers like Vertiv Holdings are experiencing sustained demand. Vertiv, which manufactures data center cooling, power, and energy storage equipment, is positioned as a safer AI infrastructure play due to rising energy costs forcing data center operators to invest in efficiency solutions regardless of broader AI sentiment. The company reported 26% YoY revenue growth in 2025 and projects 28% organic growth in 2026.