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Exclusive Article
3 Companies Quietly Essential to Data Center and AI OperationsAuthor: Nathan Reiff. Article Posted: 5/11/2026. 
Key Points
- With data center business continuing to surge, behind-the-scenes players vital to the AI chipmaking industry could shine.
- Stocks in this space have seen diverging performance year-to-date, with a screen of three notable stocks in the industry dropping by as much as 30% or gaining as much as 36% over that period.
- Key to future success will be cementing a position as a vital part of the data center infrastructure chain and growing to meet rising demand.
- Special Report: Elon Musk’s $1 Quadrillion AI IPO
Though investors may have been worried earlier in the year that the data center and AI rally was losing steam, recent weeks have helped solidify the upward trajectory that began months ago. Still, with shares of major player NVIDIA Corp. (NASDAQ: NVDA) suddenly falling in early May 2026, it may be a good time to look at lesser-known firms that are essential to the future of the data center industry. Companies responsible for providing key components and infrastructure have shown highly varied performance throughout the year, with some falling considerably year-to-date (YTD) and others soaring. The firms below represent both ends of that spectrum, but they share the overall enthusiasm of Wall Street analysts. Willdan's Share Price Decline May Present an Opportunity, But Confirmation Will Help
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Willdan Group Inc. (NASDAQ: WLDN) has been among the worst-performing data center and AI stocks YTD. As of May 7, its YTD loss was more than 27%. This energy and infrastructure services group helps manage the heat and power needs of a growing number of data centers, and the recent dip in its share price has brought its price-to-earnings (P/E) ratio to its lowest level in years. Its relatively low P/E ratio of 24 makes WLDN shares more attractive, but investors will want to see how the company can reverse its fortunes after a slow start to the year. Despite record performance in 2025—including net revenue growth of 23% year-over-year (YOY) to $365 million and a 40% improvement in adjusted EBITDA to $79.5 million—shares have been sluggish in part because of challenging guidance. Still, there are plenty of reasons to think Willdan could reverse course. The company has maintained a strong balance sheet, relatively low debt, and several significant contracts and acquisitions that should expand its capacity. Additionally, Q1 2026 earnings were a double beat, driving WLDN up 15% on the day of the release. Cadence's Crucial Role in AI Chip Design Is Translating to Big GrowthCadence Design Systems Inc. (NASDAQ: CDNS) is one of the leading providers of electronic design automation (EDA) software and hardware. This technology is vital to the design and manufacturing of advanced semiconductor chips, including those commonly used in AI applications, making Cadence a critical but often overlooked part of the AI ecosystem. The company has had an excellent start to the year, including top- and bottom-line beats for the first quarter as revenue surged 19% YOY and backlog reached an all-time high of about $8 billion. While the EDA portion of Cadence's business was a key driver, investors may overlook the company's IP business, which climbed 22% YOY for the quarter. Most importantly for investors, Cadence expects these trends to continue. The company recently raised its full-year guidance and now expects about 17% YOY improvement in full-year revenue. It also anticipates achieving the so-called "Rule of 60"—in which the percentage of revenue growth and EBITDA margin sum to at least 60—for the first time. The company may face near-term margin and cash flow pressure due to its recent acquisition of Hexagon AB’s Design and Engineering business. However, over the longer term, the acquisition is likely to support further growth. A full 14 out of 17 analysts call CDNS shares a Buy, and Wall Street expects shares to continue rising, even after climbing more than 10% YTD. KLA's Process Control Tools Prove Essential for Chip MakersAnother behind-the-scenes firm helping make the manufacturing of AI chips possible is KLA (NASDAQ: KLAC), which offers equipment and software to analyze and control the semiconductor fabrication process. KLAC shares have risen more than 40% YTD, the strongest performance among the companies on our list. This performance is due in part to a bump in April 2026, ahead of KLA's Q3 2026 earnings report for the period ended March 31, 2026. EPS and revenue both beat analyst expectations solidly, as sales climbed 11% YOY and the company generated $622 million in quarterly free cash flow. Demand continues to grow for KLA's tools and products, and the biggest challenge the company will likely face going forward is scaling capacity to meet its sizable backlog. Most analysts think it's up to the challenge: two-thirds call it a Buy. |
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