Baird has spotlighted several electrical and AI infrastructure stocks that it views as having compelling positioning as data-center architectures evolve to support artificial intelligence workloads. The firm’s note centers on companies with specific AI-related attributes - such as high-voltage content, liquid-cooling exposure, and hyperscaler customer ties - that create differentiated risk/reward profiles independent of broad capital expenditure cycles.
Market backdrop and Baird’s emphasis
Baird’s analysis arrives after market turbulence in July that placed pressure on the wider sector. Rather than chasing general capex trends, the firm focused on businesses with discrete technological or commercial advantages that could sustain growth even if spending momentum softens. Baird argues these structural elements provide a firmer floor for revenue expectations because they are linked to the mechanics of AI infrastructure - for example, higher-voltage power architectures and liquid cooling - rather than cyclical hyperscaler budgets alone.
Littelfuse (NASDAQ: LFUS)
Baird’s top pick is Littelfuse, where the firm highlights exposure to high-voltage penetration in data centers. High-voltage configurations can generate roughly 2-4 times more product content per megawatt than standard setups, according to Baird’s framework. The company reported that design wins in the first half of 2026 were more than double year-over-year, with a heavy concentration in high-voltage applications. Those customer wins and Littelfuse’s relationships with hyperscalers and chipmakers are portrayed as increasingly strategic, which Baird says supports a robust growth floor as high-voltage adoption ramps in 2027 and 2028 - irrespective of headline capital spending trends.
On the fundamentals, Littelfuse posted second-quarter 2026 adjusted earnings of $4.19 per share and revenue of $739 million, and Baird noted both metrics beat Wall Street expectations. The firm also identified Littelfuse as a second-half 2026 best idea.
nVent Electric (NYSE: NVT)
nVent’s positioning is tied to the transition toward liquid cooling in data centers, where liquid-cooled racks are supplanting traditional air-cooled systems. Baird points to the company’s capacity expansion in Blaine, Minnesota, which is mid-stream and expected to reach full utilization by the end of 2026. The company announced an additional Blaine facility on a recent Friday, a development Baird says provides clearer visibility for upside beginning in the first half of 2027 and extending into 2028. The firm judged nVent to have been oversold in late July before a subsequent rebound, and it listed nVent as another second-half 2026 best idea.
nVent also reported second-quarter 2026 adjusted earnings and revenue that topped analyst expectations and raised its full-year outlook; following the results, both UBS and Evercore ISI raised price targets on the stock, according to Baird’s note.
Amphenol Corporation (NYSE: APH)
Baird characterizes Amphenol as exposed to scale-up and scale-out server replacement cycles, rather than being solely dependent on hyperscaler capital expenditures. The firm highlights ongoing gains in data connectivity content, an underappreciated leverage to high-voltage architectures, and an increased fiber footprint after the CommScope acquisition. These elements are presented as drivers of durable content growth within server and connectivity ecosystems.
Amphenol delivered stronger-than-expected second-quarter 2026 results, with adjusted earnings of $1.35 per share on record sales of $8.8 billion, according to the company’s reported figures.
Jabil (NYSE: JBL)
Baird frames Jabil’s AI and data-center opportunity around its customer relationships. Amazon Web Services is the company’s largest customer, and Baird notes substantial upside tied to Jabil’s second-largest hyperscaler client. A third hyperscaler relationship was recently announced, and those customer connections underpin Baird’s thesis for continued growth. The firm sees a pathway to 50% sustained growth into fiscal 2027, with meaningful additional contribution from the newly announced third hyperscaler in fiscal 2028 and beyond.
On capital allocation, Jabil’s board has authorized a new $1.5 billion share-repurchase program and declared a quarterly dividend of $0.08 per share, measures the firm highlights alongside the company’s growth commentary.
Takeaway
Baird’s selection centers on firms with identifiable technology linkages to AI data-center architectures - high-voltage power distribution, liquid cooling, and hyperscaler-integrated manufacturing and connectivity - that the firm argues can support performance even if macro spending ebbs. Littelfuse and nVent were singled out as second-half 2026 best ideas, while Amphenol and Jabil were noted for their specific exposures to server cycles and customer concentration, respectively.
Note: The analysis reported here summarizes Baird’s positioning and company results as presented in the firm’s note.