Lately, I've been looking into data center concept stocks and found that the 2026 race actually seems quite interesting. Many people ask me if it's still possible to buy now. Honestly, the opportunities and risks are both in front of us; it depends on how you view it.

To briefly summarize, the server industry is now divided into three segments. The upstream is complete machine assembly, with major companies like Foxconn, Quanta, and Wistron responsible for putting together various parts into complete server systems. The middle is infrastructure, with companies like Vertiv, Chicony, and Sunlord mainly solving heat dissipation and power issues—this is super critical because AI chips consume an enormous amount of power. The last is core components, supplied by companies like Taiguang, Goldsun, and Qincheng, providing PCBs, copper-clad laminates, and related materials.

Regarding specific stocks, I focused on these few. As NVIDIA’s main partner, Foxconn holds over 40% of the global AI server market share, with last year's revenue hitting a record high of NT$8.1 trillion. Quanta specializes in high-performance server assembly; in Q3 alone, net profit exceeded NT$15 billion, up over 20% year-over-year. Analysts are generally optimistic about 2026. Wistron is even more impressive, with full-year revenue growing 163% to NT$950.6 billion, and EPS doubling to NT$275. Order visibility extends even into 2027.

There are also opportunities in the US stock market. Celestica is positioning itself in AI network transmission with 800G switches and Google TPU manufacturing, with an average Wall Street target price of $374.50, a potential upside of 22%. Vertiv is a leader in liquid cooling technology, with a backlog of orders reaching $9.5 billion, and analysts expect a further 27% increase.

But we also need to clearly understand the risks. First, the P/E ratios are already quite high; many leading stocks have already surged significantly. If AI investment enthusiasm cools down, these stocks could see sharp declines. Second, as the market shifts from focusing on revenue growth to actual profitability, rising power costs and shorter depreciation cycles will squeeze margins. Additionally, supply chain risks—geopolitical issues, tariffs, and data sovereignty policies—could all impact the industry.

Honestly, data center concept stocks still have growth potential, but now is the time to be more cautious. It’s advisable to focus on companies with actual orders, improving gross margins, and deep ties with major clients. Short-term volatility may persist, but if you believe in the long-term prospects of AI infrastructure, choosing the right stocks could still make 2026 promising. Just don’t see this as a quick way to get rich.