Recently, I’ve been looking into investment opportunities for 2026 and found that cloud server concept stocks are still quite worth paying attention to. Mainly because AI infrastructure investments are continuously expanding, and the order visibility for related companies extends to 2026 or even 2027, which is rare in other industries.

However, now is the time to choose the right targets for entry. I’ve compiled five key companies to watch: two U.S. stocks, Celestica and Vertiv, and three Taiwanese stocks, Quanta, Wistron, and Hon Hai. Each of these companies occupies a critical position in different parts of the server industry chain.

First, Celestica, a Canadian EMS giant, is doing well in AI servers and network switches. Revenue for the first three quarters of 2025 reached $3.19 billion, up 28% year-over-year, with non-GAAP EPS soaring by 52%. Wall Street analysts’ average target price is $374.50, implying about 22% upside.

Vertiv is even more impressive. This U.S. leader in thermal management and power management focuses on liquid cooling solutions, perfectly addressing the biggest pain point in AI data centers. In Q3 2025, net sales hit $2.68B, up 29% year-over-year, with a backlog of orders totaling $9.5 billion. The average analyst target price is $206.07, with a potential increase of 27%.

Back to Taiwan. Quanta, as a global leader in cloud servers, saw its Q3 2025 revenue surge to NT$500 billion, an increase of over 20% year-over-year, with quarterly net profit exceeding NT$15 billion. The full-year EPS reached NT$17.37, with gross margin and operating margin continuously improving. Morgan Stanley maintains a target price of NT$330.

Wistron focuses on solutions for ultra-large data centers. In 2025, its annual revenue reached NT$950.6 billion, up 163%, hitting a record high. In December alone, monthly revenue was NT$104.29B, and full-year EPS soared to NT$275.06, setting a profit record in Taiwan stocks. The company is actively expanding production in the U.S. and Mexico, with order visibility extending into 2027.

Hon Hai, as the world’s largest ICT manufacturer, holds over 40% market share in NVIDIA’s AI server systems. Its full-year 2025 revenue is estimated to surpass NT$8.1 trillion, with EPS for the first three quarters at NT$10.38. Management estimates that AI-related revenue will reach the trillion-yuan scale in 2026. The average Wall Street target price is NT$306, which is nearly 30% higher than the stock price at the beginning of 2026.

But here’s the truth: the cloud server concept stock sector has already accumulated significant gains. Many leading stocks still have high P/E ratios, and market concentration is extremely high. If signs of an AI bubble burst appear, or investors shift from growth to profit validation, it could trigger a sharp correction.

For 2026, several factors to watch include: whether cloud service providers’ investments in AI infrastructure will meet expectations, progress in non-x86 architectures and self-developed ASIC chips, developments in edge AI, the localization of AI chips in China, data sovereignty policies worldwide, and trade frictions affecting supply chains. Additionally, U.S. regulatory changes, tariffs, and rising electricity costs could pressure corporate gross margins.

Overall, if you are optimistic about the long-term development of AI infrastructure, these cloud server concept stocks are indeed worth researching. But current valuations already reflect many expectations, so thorough due diligence and risk assessment are essential before entering.