AI Infrastructure Stocks Facing Rising Energy Costs Investors Should Not Ignore

Fresh conflict in the Middle East, rising energy prices and renewed inflation worries are shaking confidence in the 2026 stock market rally. For investors watching AI infrastructure enablers, that combination of higher costs and volatility can either pressure margins or create openings. This article looks at how the latest news links back to AI infrastructure related stocks, and why some could still look relatively well positioned while others may face tougher headwinds. The focus is on three stocks exposed to these developments, all potentially positively affected by the current backdrop, and what that might mean for your watchlist.

Overview: Applied Optoelectronics designs and manufactures fiber optic networking gear such as high speed optical modules, lasers and transceivers that help move data inside internet data centers and across broadband networks. Its customers include large cloud players, cable operators and telecom providers across the United States, Taiwan and China.

Operations: Applied Optoelectronics generates about US$507 million in revenue from optical networking equipment, with around US$303.6 million from China, US$184.3 million from Taiwan and US$19.1 million from the United States.

Market Cap: US$7.2b

Applied Optoelectronics sits at the heart of AI data center build outs, supplying 800G and 1.6T optical transceivers that are essential for moving huge volumes of data between chips and servers. That position, together with a fast expanding U.S. manufacturing footprint and new hyperscaler orders, has attracted attention from hedge funds and index providers. At the same time, the stock is highly volatile, the company is still reporting losses and it has relied on fresh equity issuance, so execution and dilution remain real risks. Investors watching AI infrastructure may want to understand both the potential benefits of this positioning and the factors that could still pose challenges.

Applied Optoelectronics sits at the center of accelerating AI data center spending, yet its losses and equity raises suggest the full picture is more complex. Before you decide how it fits your watchlist, review the 2 key rewards and 3 important warning signs (2 are major!)

Overview: Seagate Technology Holdings provides data storage hardware and infrastructure, from high capacity hard drives and solid state drives for data centers to external drives for consumers and enterprises, as well as the Lyve edge to cloud platform that helps organizations store and access large volumes of data for AI and other workloads.

Operations: Seagate generates about US$12.2b in revenue from the manufacture and distribution of storage solutions.

Market Cap: US$194.3b

Seagate Technology Holdings sits at the center of AI data center build outs, supplying high capacity HDDs and platforms like Mozaic and Lyve that help cloud providers handle surging data demand, even as energy and inflation concerns unsettle markets. Earnings growth has been strong, pricing on nearline drives is firm, and Seagate reports substantial visibility on storage commitments from hyperscale customers. However, the stock carries a high P/E, meaningful debt, and recent insider selling that can magnify volatility if growth expectations soften. With HDD supply tight and AI driven storage needs expanding, the balance between these drivers and risks is what makes Seagate a stock many investors are watching closely.

Seagate’s accelerating AI storage story sits alongside a high P/E, real debt and insider selling that many investors may be underestimating. Before you decide where it fits, review the 3 key rewards and 3 important warning signs

Overview: Xometry runs an AI powered online marketplace that connects companies needing custom manufactured parts with a global network of suppliers, offering instant quotes, lead times and access to processes such as CNC machining, 3D printing and injection molding across sectors from aerospace to medical devices.

Operations: Xometry generates about US$740.8 million in revenue from internet software and services, with around US$618.2 million from the U.S. and US$122.6 million from international customers.

Market Cap: US$4.8b

Xometry gives AI infrastructure suppliers and other industrial customers a way to secure complex parts quickly, while its AI driven pricing engine helps limit the impact of raw material and energy cost swings that are worrying many investors today. The company sits in the sweet spot of digital procurement, AI powered margin tools and demand for data center components. However, it is still unprofitable, carries higher share price volatility and has relied on fresh equity to fund its operations. Investors considering higher risk, higher potential AI infrastructure enablers may find Xometry worth examining in more detail beyond the headlines on conflict and inflation.

Xometry’s AI marketplace story is accelerating, yet many investors still miss how its revenue mix and funding choices fit together. Before you decide how it fits your watchlist, review the analysis report for Xometry

The three stocks covered here are only a small sample of the opportunities tied to AI hardware, specialized semiconductors, data center networking and cloud infrastructure. The full screener currently flags 42 more companies with equally compelling narratives inside the AI Infrastructure Enablers screener. Use Simply Wall St to identify and analyze the specific catalysts and storylines that matter to you so you can focus on the highest conviction AI infrastructure plays.

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Seeking Alternatives Beyond AI Infrastructure

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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