AI
AI Chip Frenzy Turns Obscure Firms Into Stock Market Stars
Investors are piling into companies supplying AI infrastructure, from a 175-year-old glassmaker to heavy equipment manufacturers, driving record stock gains.
A 175-year-old glassmaker and a heavy equipment manufacturer are among the unlikely winners of a global stock market surge fueled by demand for artificial intelligence infrastructure. Shares of companies supplying the raw materials and core components needed to build AI systems have hit record highs, with gains spreading far beyond traditional chipmakers.
The rally helped push the S&P 500 up 1.5% to new highs on Wednesday, supported by signs of progress in Middle East peace talks and strong results from AMD, according to a Wall Street Journal report.
Optical Fiber and Heavy Machinery
Corning, a specialist in glass and optical fiber, saw its stock jump 12% on Wednesday after Nvidia announced plans to invest $500 million in the company to expand production of optical fiber used in AI data centers. The fiber optic cables Corning produces—a company that once made light bulbs for inventor Thomas Edison—are now critical connectors in massive data centers. The Nvidia deal follows a previous multi-year contract Corning signed with Meta worth up to $6 billion.
Caterpillar, known for its yellow excavators and bulldozers, also benefited from the data center boom after reporting strong quarterly profits and sales driven by rising demand for the massive power generation equipment these centers require. The company aims to double its turbine engine production capacity by 2030 and is executing its largest industrial spending plan in 15 years, including a $725 million investment in its Indiana plant to produce more engines for electrical generators.
Cooling Systems and Asian Gains
Energy and cooling companies have also ridden the wave. Vertiv, which supplies power and cooling systems, saw its stock rise more than 2,000% over the past three years. Gains extended to Asian firms like Delta Electronics, while companies from other sectors began redirecting their operations to tap into the AI wave.
QuantumScape, a company specializing in electric vehicle batteries, announced it was entering the AI data center and defense markets, pushing its stock up more than 14% in April.
Rebranding and Social Media Hype
Some struggling companies have repositioned themselves around AI in an attempt to attract investors, in moves some have compared to the rush of internet companies during the dot-com bubble. Shoe company Allbirds changed its name to New Bird AI, sending its stock soaring 582% in a single session. Algorithm Holdings rose 222% after announcing its transformation into an AI-powered logistics company.
Raspberry Pi shares climbed 36% following a social media post suggesting that AI agents like OpenAI might boost demand for the low-cost computers the company produces.
The broader surge has increased market volatility, with investors divided over whether AI will deliver the massive returns expected or cause widespread disruption across entire economic sectors. As demand for technical infrastructure grows, investors are turning to companies supplying the components and materials needed to keep AI technologies running, viewing them as best positioned to profit regardless of which companies win the technology race.
