Lately, I've been asked a lot about which server stocks are worth paying attention to, so I might as well organize my observations.

Honestly, the AI infrastructure rally is still fermenting. The entire server industry chain can actually be divided into three parts: complete machine assembly, infrastructure, and core components. Each segment has leading companies vying for position, and the opportunities vary.

First, let's talk about the complete machine assembly segment. Hon Hai, Quanta, and Wistron are currently the most worth watching. Hon Hai, as a major partner of NVIDIA, holds over 40% global market share in AI servers, a position not to be underestimated. Quanta leverages strong R&D capabilities to lead in high-performance server system integration, mainly serving big clients like Google and AWS. Wistron is more focused, with 100% of its business in data centers, fully concentrating on ultra-large-scale cloud service providers.

On the US stock side, Celestica and Vertiv have also performed very well. Celestica has differentiated advantages in 800G switches and Google TPU manufacturing, while Vertiv is a leader in liquid cooling technology, which is becoming increasingly critical in the AI era.

At the infrastructure level, power and cooling are indeed the biggest pain points for data centers. Vertiv’s liquid cooling solutions are almost standard for AI racks; when power consumption exceeds 100kW, they are almost indispensable. Companies like Chih Hsin and Shuang Hung, which produce cooling modules, are also benefiting from this trend.

In the core components segment, Taiwan’s Guanghua, Jinsung, and Qinye each have their own strategic positions. Guanghua has secured a key link in NVIDIA’s supply chain with high-speed copper-clad laminate substrates. Jinsung’s high-level PCB technology is extremely challenging, and Qinye supplies chassis capable of supporting heavy GPUs.

Regarding specific server stocks worth focusing on, I think these five are the most promising: Hon Hai, Quanta, Wistron, Vertiv, and Celestica. Hon Hai’s vertical integration is unbeatable, Quanta’s R&D advantage is clear, Wistron’s business purity is the highest, and Vertiv and Celestica have differentiated competitiveness in their respective fields.

However, these leading stocks are not cheap now, and their gains have already accumulated significantly. Investors’ focus is shifting from revenue growth to profitability and ROI, which could lead to divergence. If signs of an AI bubble burst appear, or if investors shift from growth to profit validation, a sharp correction could occur.

Looking ahead to 2026, key 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, the localization of AI chips in China, and changes in data sovereignty policies across countries. Additionally, US regulatory environment, rising electricity costs, and trade frictions will impact supply chains and corporate margins.

In summary, server stocks are indeed worth watching, but entering now requires more caution. During the market’s de-speculation process, only companies that truly create business value will go further.