Undervalued AI-Enablers to Outperform in 2026: Under-the-Radar Infrastructure Stocks with Strong Analyst Backing and Scalable Use Cases

The AI revolution is accelerating, and while the spotlight often shines on high-profile tech giants, a quieter wave of infrastructure enablers is quietly building the backbone of this transformation. These under-the-radar stocks-often-overlooked by mainstream investors-are positioned to outperform in 2026 due to their critical roles in AI hardware, cloud scalability, and enterprise software. Below, we analyze six such companies, each with strong analyst backing, robust financials, and scalable use cases that align with the explosive growth of AI-driven industries.

1. Oracle Corporation (ORCL): The AI Infrastructure Utility

Oracle's transformation into an AI infrastructure utility has drawn significant attention from analysts, despite mixed quarterly results. In Q2 2026, the company reported a 68% year-over-year surge in Cloud Infrastructure revenue to $4.08 billion, driven by demand for AI and cloud services. However, its $50 billion capital expenditure plan for AI infrastructure-a $15 billion increase from earlier projections-has raised concerns about margin pressures.

Despite these challenges, remaining performance obligations have skyrocketed to $523 billion, a 438% year-over-year jump, signaling robust contracted demand. Analysts remain optimistic: Jefferies and Mizuho maintain $400 price targets, citing Oracle's chip-neutral approach and Sovereign Cloud capabilities. Wells Fargo's Michael Turrin argues Oracle could generate over one-third of its revenue from AI by 2029, justifying a $280 price target. With an average analyst price target of $307.72, Oracle's long-term potential remains compelling despite near-term volatility.

2. Credo Technology (CRDO) and Astera Labs (ALAB): Connectivity Powerhouses

Credo and Astera Labs are critical enablers of AI data-center infrastructure, specializing in high-speed connectivity solutions. Credo's AEC (Active Electrical Cable) technology has driven 274% revenue growth to $223.1 million in 2025, while Astera Labs expects Q3 2025 revenue of $203–$210 million. Both companies are pivotal in addressing the "data movement bottleneck" in AI clusters, with Credo's GPUs and Astera's PCIe 6.0 solutions enabling efficient inter-chip communication.

Analysts rate these stocks highly, with AI-powered tools assigning both a score of 8/10 for outperforming the market in the next three months. Bank of America highlights their scalability, noting that demand for high-speed connectivity will only intensify as AI models grow in complexity.

3. MKS Instruments (MKSI): Precision Power for Chip Production

MKS Instruments, a leader in precision power and vacuum systems for semiconductor manufacturing, reported Q4 2025 earnings of $1.93 per share, exceeding estimates by 7.2%, and revenue of $988 million-a 10.3% year-over-year increase. The company's 2025 revenue is projected to reach $3.9 billion, with EPS growth of ~22%. Analysts have set an average 1-year price target of $171.10, with Morgan Stanley and Cantor Fitzgerald raising their targets amid optimism about MKS's gross margin recovery to 47%+ in 2026.

As AI chips require increasingly precise manufacturing, MKS's role in enabling advanced node production positions it as a key beneficiary of the AI infrastructure boom.

4. Sabre Corporation (SABR): Undervalued GDS Innovator

Sabre, the second-largest global distribution system (GDS) in air booking, trades at a 46% discount to its Morningstar fair value of $2.82 per share. The company's strategic partnership with Alphabet and its cloud-based SabreMosaic platform are expected to drive cost efficiencies and innovation in travel tech. Analysts project Sabre's net debt/EBITDA ratio to drop from 19x in 2024 to 6x by 2025, bolstered by the sale of its hospitality solutions business.

With the AI-driven travel industry expanding-leveraging predictive analytics and dynamic pricing-Sabre's narrow economic moat and undervaluation make it a compelling long-term play.

5. Applied Digital and Dell Technologies: AI Data Center Pioneers

While not explicitly listed in the initial research, Applied Digital and Dell Technologies emerged as undervalued AI infrastructure leaders. Applied Digital's $11 billion deal with CoreWeave to build AI-focused data centers validates its rapid deployment capabilities, while Dell's close ties to NVIDIA position it to dominate AI server demand. Both trade at conservative valuations-Applied Digital at 6x long-term operating profit and Dell at under 15x forward earnings-making them attractive for risk-adjusted growth.

Conclusion: The Infrastructure Winners of 2026

The AI infrastructure landscape is dominated by companies solving critical bottlenecks in connectivity, cloud scalability, and manufacturing. Oracle's cloud ambitions, Credo and Astera's data-center innovations, MKS's precision tools, and Sabre's GDS transformation all align with the sector's trajectory. As AI adoption accelerates across industries-from semiconductors to travel-these under-the-radar stocks offer a unique blend of undervaluation and high-growth potential. For investors seeking to capitalize on the second wave of AI, the infrastructure layer is where the real value lies.