Recently, I took stock of the leading server stocks and found that the 2026 race in this sector is truly fascinating. As AI infrastructure continues to expand, the entire server industry chain is going through structural opportunities.

Simply put, the server industry can be divided into three layers: complete machine assembly plants, infrastructure providers, and key component manufacturers. Each layer has its own leading players worth paying attention to.

Let’s start with complete machine assembly. Foxconn, the world’s largest contract manufacturer, is deeply tied to NVIDIA, and they are the core supplier of cabinet systems such as GB200. Quanta, with its strongest R&D capabilities, serves Google, AWS, and Meta, and leads in the integration of high-performance AI server systems. Wistron is even more interesting: 100% of its business is in data centers, focusing on ultra-scale cloud service providers, and it is highly profitable in liquid-cooled cabinet integration. On the U.S. stock side, Celestica’s differentiated strengths lie in 800G switches and Google TPU manufacturing, while Supermicro is a pioneer in modular servers with an early layout for liquid cooling solutions.

In the infrastructure layer, Vertiv is a global leader in thermal management. When the power consumption of AI cabinets exceeds 100kW, their cooling distribution units become essential. In Taiwan, Chilicon and Shuanghong supply 3D heat spreader plates and liquid cooling plates for GPUs, directly benefiting from upgraded thermal dissipation needs. Eaton is also crucial in power management.

In key components, TAI-LIGHT’s high-speed copper foil substrates dominate the NVIDIA supply chain. Kinpo has extremely high technical barriers in high-layer PCB technology. Qincheng’s server chassis can support ultra-heavy GPU modules.

The five stocks I’m paying special attention to are: Celestica, Vertiv, Quanta, Wistron, and Foxconn. Celestica’s revenue over the past three quarters was $3.19 billion, up 28% year over year; non-GAAP EPS rose 52% year over year. The Wall Street average target price is $374.50, implying a potential upside of 22%. Vertiv’s third-quarter net sales were $2.676 billion, up 29% year over year, with an order backlog of $9.5 billion. The average analyst target price is $206.07, implying a potential upside of 27%.

Quanta’s third-quarter revenue was about NT$500 billion, up more than 20% year over year; quarterly net profit was NT$15 billion, and full-year EPS reached 17.37. Morgan Stanley maintains an “Outperform” rating with a target price of 330. Wistron’s 2025 consolidated revenue was NT$950.6 billion, up 163% year over year; full-year EPS is as high as 275.06, and order visibility extends to 2027. Foxconn’s global market share in AI servers exceeds 40%. Its 2025 revenue is forecast to surpass NT$8.1 trillion. EPS for the first three quarters was 10.38, and the Wall Street average target price is 306, implying a potential upside of 29%.

But it’s important to be clear: the risks are not small. These leading server stocks have already accumulated huge gains; many still trade at elevated P/E ratios, and market concentration is extremely high. If signs of an AI bubble bursting appear, or if investors shift from growth to profit validation, it can easily trigger a significant pullback.

In addition, shortening depreciation cycles and rising electricity costs may weigh on some companies’ reported profits. The rise of non-x86 architectures and self-developed ASIC chips could also change the traditional server market share. Also worth continued monitoring are the localization progress of AI chips on the Chinese mainland, each country’s data sovereignty policies, the impact of trade frictions on the supply chain, and the tariff and cost pressures brought by policy changes in the United States.

In short, leading server stocks do have opportunities, but entering now requires caution. It’s recommended to focus on companies with liquid cooling technology, high-density computing solutions, and deep collaboration with chip giants, while closely monitoring the market’s shift from speculation to actual business value creation. Through this process, stock price volatility should become more stable, and the bubble should gradually deflate.