Why Undiscovered Chip Stocks Like Vertiv, TSMC, and Datadog Outperform Blue-Chip Giants in 2026

The AI revolution is reshaping global technology infrastructure, creating a surge in demand for specialized enablers that power the next generation of computing. While blue-chip giants like Microsoft and Amazon dominate headlines, companies such as Vertiv (VRTX), TSMC (TSM), and Datadog (DDOG) are quietly outpacing them in growth and innovation. These firms are not just participants in the AI boom-they are its architects, supplying critical components for data centers, semiconductors, and cloud observability. With AI workloads projected to account for half of global computing demand by 2030, investors who recognize these infrastructure enablers early stand to reap outsized rewards in 2026.

Vertiv: Cooling the Fires of AI's Data Center Boom

Data centers are the backbone of AI, but their exponential growth demands equally advanced power and cooling solutions. Vertiv, a leader in data center infrastructure, has capitalized on this need. In Q3 2025, the company reported a 29% year-over-year revenue increase, driven by surging demand for its liquid cooling systems and high-voltage power architectures. Its $9.5 billion backlog underscores robust future revenue visibility, while the launch of Vertiv OneCore-a prefabricated data center solution- positions it to accelerate deployments for high-density AI workloads.

Unlike blue-chip peers, which often prioritize diversified revenue streams, Vertiv's hyperfocus on AI-specific infrastructure has fueled its outperformance. For instance, Microsoft's Azure cloud services grew 30% year-over-year in Q2 FY2026, but its CapEx for AI infrastructure is projected to reach $100 billion by FY2027, highlighting the indirect role of hyperscalers versus the direct enablers like Vertiv.

TSMC: The Semiconductor Engine Behind AI's Ascent

TSMC, the world's largest contract chipmaker, is the linchpin of AI's hardware revolution. In Q3 2025, the company achieved a 30.3% revenue increase, with AI and high-performance computing (HPC) accounting for 57% of total sales. Its 3- and 5-nanometer chips, essential for training large AI models, power GPUs for NVIDIA and CPUs for Apple, securing its dominance in the supply chain. TSMC has even raised its 2025 revenue forecast to the mid-30% range, reflecting unrelenting demand.

Blue-chip semiconductor players like Intel, while historically dominant, have struggled to match TSMC's agility in advanced node manufacturing. Meanwhile, TSMC's ability to scale production for AI-specific chips-such as those used in cloud inference-positions it to capture a disproportionate share of the $527 billion in AI-related capital expenditures expected from hyperscalers in 2026.

Datadog: The Cloud Observability Layer for AI Workloads

As AI models grow in complexity, so does the need for real-time monitoring and security. Datadog, a leader in cloud observability, has expanded its platform to address these demands. In Q2 2025, the company reported 28% year-over-year revenue growth, with 3,850 customers generating $100k+ in annual recurring revenue. Its innovations in AI monitoring and cloud security have solidified its role as a critical enabler for enterprises deploying AI at scale.

While blue-chip cloud providers like Amazon invest heavily in AI infrastructure-AWS's CapEx hit $125 billion in 2025-Datadog's specialized focus on observability tools offers a more direct play on the AI-driven cloud migration trend. Amazon's AWS revenue grew 20% year-over-year in Q3 2025, but Datadog's 28% growth rate and recent inclusion in the S&P 500 highlight its superior momentum.

Blue-Chip Giants: Stability Over Sustained Upside

Blue-chip companies like Microsoft and Amazon are undeniably integral to the AI ecosystem. Microsoft's Azure is projected to grow 36% in FY2026, with AI contributing 12 percentage points of that growth. Amazon's AWS, meanwhile, is expected to grow over 30% in 2026. However, these companies benefit from their scale and diversified portfolios, which inherently limit their growth rates compared to niche enablers.

For example, the global data center sector is forecasted to grow at a 14% CAGR, but hyperscalers and blue-chip providers are constrained by their need to balance AI investments with legacy business lines. In contrast, Vertiv, TSMC, and Datadog are unencumbered by such trade-offs, allowing them to allocate capital and R&D exclusively to AI-critical infrastructure.

Conclusion: The Infrastructure Play for 2026

As AI transitions from training to inference as the dominant workload driver, the demand for specialized infrastructure will only intensify. Vertiv, TSMC, and Datadog are uniquely positioned to capitalize on this shift, with financials and growth metrics that outpace even the most dominant blue-chip giants. While companies like Microsoft and Amazon offer stability, investors seeking higher returns should prioritize the enablers that are building the AI revolution from the ground up. In 2026, these undiscovered chip stocks could well define the next era of tech investing.