How does Celestica benefit from AI?

Celestica provides manufacturing and logistics services for data center equipment and benefits from manufacturing contracts with companies like NVIDIA.

What is Comfort Systems USA's role in AI infrastructure?

It specializes in HVAC systems for commercial and industrial buildings, benefiting from the growing demand for cooling systems in data centers.

Has the AI boom ended?

Based on TSMC and Meta's performance, spending on AI infrastructure is still ongoing, indicating the boom is not over yet.

Two Hidden AI Businesses to Watch as Boom Continues

Q: What are the two hidden companies that could benefit from the AI boom?

They are Celestica (ticker: CLS) and Comfort Systems USA (ticker: FIX).

While many investors worry the AI trend has peaked, the recent performances of Taiwan Semiconductor and Meta Platforms indicate the AI infrastructure build-out is still underway, opening opportunities for indirect players like Celestica and Comfort Systems USA.

Many investors feel that the AI trend has peaked, but the recent performances of Taiwan Semiconductor (TSMC) and Meta Platforms suggest the AI build-out is still ongoing.

Details

According to a report from Motley Fool, continued spending by tech giants like TSMC and Meta on data centers and specialized chips means there are investment opportunities in indirect companies that may not be in the spotlight. Two such companies are Celestica (ticker: CLS) and Comfort Systems USA (ticker: FIX).

Celestica

Celestica provides manufacturing and logistics services to technology companies, including data center equipment. With increasing demand for AI infrastructure, Celestica benefits from manufacturing contracts with companies like NVIDIA.

Comfort Systems USA

Comfort Systems USA specializes in HVAC systems for commercial and industrial buildings. As data centers expand, demand for efficient cooling systems rises, benefiting the company.

Context

TSMC and Meta have shown strong performance in the latest quarter, with TSMC's revenue rising due to demand for AI chips, while Meta continued its investments in AI infrastructure. This indicates that AI spending is still in its early stages, creating opportunities for companies supporting this expansion.

What It Means for Investors

For investors seeking exposure to the AI sector without directly investing in the major players, companies like Celestica and Comfort Systems USA may be attractive options. However, risks related to dependence on key customers and market volatility should be considered.