2026 as the Pivotal Midpoint for AI Infrastructure Investment

The year 2026 is shaping up to be a defining inflection point for AI infrastructure, as the sector transitions from speculative hype to a reality-driven, capital-intensive boom. With AI-driven capital expenditures (capex) projected to surpass $527 billion in 2026-potentially climbing to $700 billion as historical trends suggest-investors are increasingly turning their attention to the semiconductor and energy infrastructure companies poised to benefit from this seismic shift according to Goldman Sachs research. This analysis identifies undervalued plays in both domains, supported by financial metrics, market positioning, and strategic partnerships.

Semiconductor: The Backbone of AI's Expansion

The semiconductor industry is at the heart of the AI revolution, with demand for advanced chips, memory, and power solutions surging. According to KPMG's Global Outlook, 93% of industry leaders anticipate revenue growth in 2026, driven by AI's expansion into data centers, electric vehicles, and edge computing. The AI chip market alone is expected to balloon from $200 billion in 2025 to $1 trillion by 2030, creating a fertile ground for innovation and investment.

Undervalued Semiconductor Plays
1. ON Semiconductor (ON): This company has emerged as a standout in the AI infrastructure space, with its vertical gallium nitride (vGaN) power semiconductors and recent acquisition of Aura Semiconductor's Vcore technologies positioning it to reduce energy loss in data centers. ON's forward P/E of 19.01 and a projected 3.63% upside make it one of the most undervalued semiconductor stocks according to financial analysis.
2. Qualcomm (QCOM) and Skyworks (SWKS): Both companies boast forward P/E ratios of 13.94 and 13.71, respectively, with potential upside of 8.39% and 9.89% according to financial analysis. Qualcomm's strategic expansion into data centers and Skyworks' merger-related optimism highlight their growth trajectories.
3. Marvell Technology (MRVL) and Analog Devices (ADI): These firms are capitalizing on AI's demand for high-bandwidth memory (HBM) and data center-specific hardware. Marvell reported a 38% revenue increase in Q3 2026, while Analog Devices forecasts sustained growth in 2026.

Key Catalysts: The dominance of AI in driving global economic growth-comparable to past infrastructure booms like the railroad and interstate highway systems-ensures continued demand for semiconductors. However, challenges such as geopolitical risks and talent shortages remain, underscoring the need for companies with strong R&D pipelines and diversified supply chains according to KPMG analysis.

Energy Infrastructure: Powering the AI Revolution

As AI models grow more complex, the energy demands of data centers are reaching unprecedented levels. Goldman Sachs Research estimates that AI-related capex in 2026 could exceed $527 billion, with energy providers playing a critical role in meeting this demand.

Undervalued Energy Infrastructure Plays
1. Johnson Controls (JCI) and Eaton (ETN): These companies are leading the charge in cooling and power solutions for data centers. Johnson Controls' $16.6 billion backlog ensures revenue visibility into 2026, while Eaton's acquisition of Boyd Thermal strengthens its liquid cooling capabilities.
2. NuScale Power (SMR): This nuclear energy firm is leveraging Small Modular Reactors (SMRs) to provide reliable baseload power for AI operations. A recent agreement to deploy up to 6 gigawatts of SMR capacity underscores its strategic relevance.
3. Xylem Inc. (XYL): Focused on water management for high-performance data centers, Xylem achieved 7.8% revenue growth in Q3 2025, reflecting the sector's resilience.

Key Catalysts: The "power renaissance" driven by AI adoption is creating tailwinds for utilities and infrastructure firms. Nuclear energy, in particular, is gaining traction as a scalable solution for data center energy needs, with companies like Constellation Energy and Dominion Energy securing long-term contracts with tech giants.

Conclusion: A Structural Opportunity

2026 represents a pivotal midpoint in the AI infrastructure cycle, where the convergence of semiconductor innovation and energy infrastructure scalability will define long-term winners. While challenges such as energy supply constraints persist, the structural demand for AI-driven capex ensures that undervalued players in both sectors will see outsized gains. Investors should prioritize companies with strong financial metrics, strategic partnerships, and clear pathways to capitalize on the AI boom.