3 Companies Quietly Essential to Data Center and AI Operations

Key Points

• With data center business continuing to surge, behind-the-scenes players vital to the AI chipmaking industry could shine.
• Stocks in this space have seen diverging performance year-to-date, with a screen of three notable stocks in the industry dropping by as much as 30% or gaining as much as 36% over that period.
• Key to future success will be cementing a position as a vital part of the data center infrastructure chain and growing to meet rising demand.

Though investors may have been concerned earlier in the year about the data center and AI rally collapsing, recent weeks have helped to solidify the upward trajectory begun months ago. Still, with shares of major player NVIDIA Corp. NASDAQ: NVDA suddenly falling early in May 2026, it may be an opportunity to look to lesser-known firms essential to the future of the data center industry.

Companies responsible for providing key components and infrastructure have actually seen highly varied performance throughout the year, with some falling considerably year-to-date (YTD) and others soaring. The firms below represent both ends of this spectrum, but they share the overall enthusiasm of Wall Street analysts.

Willdan's Share Price Decline May Present an Opportunity, But Confirmation Will Help

Willdan Group Inc. NASDAQ: WLDN has been among the worst-performing data center and AI stocks YTD. As of May 7, its YTD loss was over 27%. This energy and infrastructure services group is responsible for managing the heat and power for a growing number of data centers, and the recent dip in its share price helped bring its price-to-earnings (P/E) ratio to its lowest level in years.

Its comparably low P/E ratio of 24 makes WLDN shares more attractive, but investors will want to know how the company can reverse its fortunes since the start of the year. Despite record performance in 2025—including net revenue growth of 23% year-over-year (YOY) to $365 million and a 40% improvement in adjusted EBITDA to $79.5 million—shares have been sluggish in part due to challenging guidance.

Still, there are plenty of reasons why Willdan could reverse course. The company has maintained a strong balance sheet, relatively low debt, and several significant contracts and acquisitions that should boost its capacity. Additionally, Q1 2026 earnings were a double-beat, driving WLDN up 15% on the day of the release.

Cadence's Crucial Role in AI Chip Design Is Translating to Big Growth

Cadence Design Systems Inc. NASDAQ: CDNS is one of the leading providers of electronic design automation (EDA) software and hardware. This technology is vital to the designing and manufacturing of advanced semiconductor chips, including those commonly used in AI applications, making Cadence a critical but often overlooked part of the AI ecosystem.

The company has had an excellent start to the year, including both top- and bottom-line wins for the first quarter as revenue surged by 19% YOY and backlog reached an all-time high of about $8 billion. While the EDA portion of Cadence's business was a driver of this, investors may overlook the company's IP business, which climbed by 22% YOY for the quarter.

Most importantly for investors, Cadence expects these trends to continue: the company recently raised its full-year guidance and now expects about 17% YOY improvement to full-year revenue.

It also anticipates achieving the so-called "Rule of 60"—in which the percentage of revenue growth and EBITDA margin sum to at least 60—for the first time.

The company may face near-term margin and cash flow issues due to its recent acquisition of Hexagon AB’s Design and Engineering business. However, over a longer term, the acquisition is likely to fuel further growth.

A full 14 out of 17 analysts call CDNS shares a Buy, and Wall Street expects shares to continue to rise, even after climbing by more than 10% YTD.

KLA's Process Control Tools Prove Essential for Chip Makers

Another behind-the-scenes firm helping to make possible the manufacturing of AI chips is KLA NASDAQ: KLAC, which offers equipment and software to analyze and control the semiconductor fabrication process. KLAC shares have risen by over 40% YTD, the strongest performance among the companies on our list.

This performance is due in part to a bump in April 2026, ahead of KLA's Q3 2026 earnings report (for the period ended March 31, 2026). EPS and revenue both beat analyst predictions solidly, as sales climbed by 11% YOY and the company generated $622 million in quarterly free cash flow.

Demand just keeps growing for KLA's tools and products, and the big challenge the company will likely face going forward is scaling its capacity to meet its hefty backlog. Most analysts think it's up for the challenge: two-thirds call it a Buy.