The AI Infrastructure Boom Is Just Getting Started. Here Are 2 Stocks to Buy.

The Motley FoolFeb 12, 2026 6:23 AM

Key Points

Fluence Energy's industrial-scale battery systems deliver the clean, stable power that AI data centers require.
Credo Technology's high-speed copper cables match fiber-optic performance at a fraction of the power consumption.
Both companies solve critical data center pain points: power reliability and network efficiency.
10 stocks we like better than Credo Technology Group ›

AI data centers are hungry beasts. They devour electricity, generate enormous heat, and demand network speeds that would have seemed like science fiction a decade ago. AI systems like ChatGPT and Gemini can do some amazing things, but it takes a lot of computing hardware to make it happen.

The hyperscalers are spending accordingly; nearly $1 trillion went into data center buildouts in 2025 alone. Solving these infrastructure challenges has become a booming business, and two smaller companies are quietly cashing in.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Fluence Energy

Modern data centers crave a reliable power supply without surges, spikes, or jittery sine wave frequencies. Fluence Energy (NASDAQ: FLNC) makes industrial-scale battery modules that deliver the pristine energy AI servers require. It's a particularly natural fit when paired with renewable energy sources such as wind or solar, as Fluence's battery packs let you build energy reserves for later use when the wind is blowing or sun is shining.

The company was formed in 2018 as a joint venture between industrial engineering giant Siemens (OTC: SIEGY) and power generation expert AES (NYSE: AES). Revenues have been flat in recent years, even trending down in 2025, but analysts see a hockey-stick moment coming up. Two years from now, annual sales should be up by 57%.

And what's fueling Fluence's upcoming growth spurt? Data centers, of course.

"In terms of new customer segments, our biggest opportunity is data centers," CEO Julian Marquez said in last week's Q1 2026 earnings call. The company has 36 gigawatt-hours (GWh) of data center projects under development. None of these potential sales are included in Fluence's official order backlog yet, but it's a big opportunity. As of last September, the company had a total installed capacity of 46 GWh.

Long story short, Fluence should get a lot of data center orders over the next couple of years. Many analysts and investors are skeptical because no contracts have been signed yet. The stock is richly valued despite a recent price correction, but well worth a nibble thanks to the explosive data center opportunity. Growth investors don't always mind paying a premium price for high-octane growth stocks, and Fluence is poised to join that group.

Credo Technology

Data center operators are happy to replace longtime favorite solutions if the change results in higher performance or lower costs. With Credo Technology's (NASDAQ: CRDO) high-speed networking tools, they can reduce power consumption and cooling requirements without sacrificing network performance.

Credo's Active Electrical Cables (AECs) can deliver data flows at up to 0.8 terabits per second (or twice that in the brand-new fourth-generation products), using copper cables with directly attached traffic management chips. That's comparable to the latest and greatest fiber-optic networks, while using much less electric power.

On the downside, Credo's cables can't exceed 7 meters (21 feet), but that's not a problem in densely populated data centers. AEC is a perfect match for the densely packed and data-hungry environment of an AI data center.

Many rows of server racks in a modern data center.

Image source: Getty Images.

The company is a strong innovator. Other network hardware makers pay significant royalties for the serializer-deserializer technology at the heart of those high-speed AEC connections.

Most of Credo's revenues come from a handful of hyperscalers. For example, a single unnamed client accounted for 67% of total revenues in fiscal year 2025, which ended on May 3 last year. So the sales can be lumpy and dependent on these mega-clients' data center infrastructure investments. But it's an incredible business. In the just-released preliminary report for Q3 2026, Credo pointed to revenues near $406 million -- triple the $135 million seen in the year-ago period.

This little networking expert is going places, one data center at a time.

Should you buy stock in Credo Technology Group right now?

Before you buy stock in Credo Technology Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Credo Technology Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,353!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,789!*

Now, it’s worth noting Stock Advisor’s total average return is 920% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of February 12, 2026.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fluence Energy. The Motley Fool has a disclosure policy.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.