AI hardware stocks are booming more than AI companies.

Investors are shifting their money to them as they think that they are less risky considering they also have traditional revenue sources and are ‘shovels’ in an AI gold rush.

We take a look at AI hardware stocks that provide chips and other hardware products for the AI and data centre industries.

Interested in more stock analyses and opportunities? We have these just for you below

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InvestKaki Team 🤜🤛

Moving on, here are the news that shocked the world…

U.S.-Iran Deal $SPX ( ▲ 0.84% ): The ceasefire is still in effect but both sides have traded blows. The U.S. attacked several Iranian sites while Iran attacked U.S. ships [Read More]

AMD $AMD ( ▲ 11.44% ): AMD is soaring. Revenue and profits are both up by 38% and 96% respectively on booming AI data centre demand [Read More]

Palantir $PLTR ( ▲ 0.55% ): Palantir’s financial results was strong. Revenue grew by a whopping 85% driven by military and commercial demand. However, investors were a bit disappointed with its commercial segment [Read More]

Berkshire Hathaway $BRK.B ( ▲ 0.18% ): After Warren Buffett’s retirement, Greg Abel’s first press conference yielded a doubling in profits for 1Q 2026. The old investment philosophies will be maintained [Read More]

Disney $DIS ( ▼ 0.59% ): Disney topped expectations. Revenue was up by 7%, but profits declined by 30% due to a one-off tax benefit in 1Q 2025. Its streaming services have almost doubled but its profits are dragged down by its linear television and sports segments [Read More]

Here are the news covering the Asia market…

CK Hutchinson $CKHUY ( ▲ 1.47% ): CK Hutchinson, the Hong Kong conglomerate sold its 49% stake in Vodafone, UK’s biggest telecommunications player, for US$5.8 billion to ‘build up its war chest’ [Read More]

UOB: UOB’s results were within expectations. Net profit was up by 2% q-o-q, but down by 8% y-o-y. Net interest margin narrowed, slightly reducing profitability. [Read More]

OCBC: OCBC has agreed to purchase HSBC’s Indonesian retail banking and wealth management arm, IWPB Indonesia, for a premium of around $480 million [Read More]

OCBC Earnings: Meanwhile, its earnings for 1Q 2026 beat estimates. Profits were up by 5% as wealth management continue to shine. Net interest income however, fell as overall interest rates were lower. [Read More]

Parkway Life REIT: Gross revenue declined by 2.1% due to foreign currency losses and lower rental income from its Japanese portfolio. One of its main tenant is also undergoing liquidation. [Read More]

Starhub: Starhub’s profits have declined by 81% to SG$5.9 million as all three segments of mobile, broadband and entertainment experienced a drop [Read More]

Global defense budgets are expanding, but the allocation has changed. A growing share of spending is going toward AI-enabled systems, satellite networks, and advanced aerospace, not the platforms that dominated the last generation of procurement. We identified five companies at the center of this reallocation in a single research brief. Inside, you'll find the investment case for each, the contracts driving revenue, and the risks worth understanding before you commit capital. If you want exposure to defense sector growth beyond the traditional mega-caps, this report is a practical starting point. Free, concise, and built for investors who want to move ahead of the crowd.

Read the report

U.S. and Iran long-term deal?

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AMD makes and sells semiconductors to three segments - data centres, client & gaming, and embedded.

Why we like this: Its recent 1Q 2026 results have been very strong, which made us look more into the company.

If you are familiar with AMD, you would know that the company is very plugged into the AI sector. Basically, they provide all the hardware to AI companies for computing power to run their AI models.

We are also positive on AMD’s guidance for the quarter ahead. AMD is guiding for US$11.2 billion for 2Q 2026 with a projected 46% growth.

AMD is currently trading at high valuations. Price-to-earnings ratio is at 139 times compared to peers’ average of 39 times.

Intel Corporation makes and sells semiconductors and other electrical and electronics equipment and components.

Why we like this: The Intel turnaround is here. And we like that the company is now being supported by the U.S. government with its 10% stake.

What about the turnaround? In the past five years, Intel has basically not taken advantage of the AI boom, and has let Nvidia zoom past it. It also needed to deal with its bloated cost structure in its manufacturing/foundry division.

Its 1Q 2026 results indicate that revenue has grown by 7.2% to US$13.6 billion. However, it is still incurring losses and has decided to incur restructuring charges of US$4.1 billion for this quarter. This resulted in a net loss of US$3.7 billion.

We are instead, looking towards its collaboration with AMD to form the x86 ecosystem advisory group.

Analog Devices designs, manufactures and sells integrated circuits and software.

Why we like this: 2Q 2026 results are not out yet but we can kind of guess that it will be strong based on its 1Q 2026 results.

This higher growth was driven mainly by its communication (+63%) and industrial (38%) segments. More specifically, they have been seeing higher demand from its AI clients.

We think of Analog Devices as being the shovel for the AI industry. It provides high-performance protection solutions for high energy usage in data centres, and also solutions for power control.

Both revenue and profits are projected to grow by 11.5% and 20.3% respectively for 2026.

Corning provides optical communication, display, specialty materials, automotive and life science services and products.

Why we like this: We like its involvement in the optical communication space, where it produces optical fibers essential for transmitting data in the data centre industry. It’s not glamorous, but they provide the basic infrastructure and equipment.

In 1Q 2026, optical communication sales were up by 33%, driven by demand for GenAI products and large hyperscaler contracts with Meta.

Hence, investors are optimistic on Corning’s hardware value positioning. Valuations is expensive at 86 price-to-earnings ratio but there are still legs to run with a potential upside of +7.3%.

Caterpillar sells and leases construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel electric automotives.

Why we like this: You will be wondering what is Caterpillar is doing here. But you will be surprised to know that Caterpillar’s energy solutions and assets are important for the AI data centre industry.

Power and electricity is a scarce resources now for power-hungry data centres. Caterpillar provides quick-start diesel and natural gas generators for them, and also provides fuel efficiency services. They resolve a main problem of power shortages from power utility companies by providing temporary energy solutions.

Revenue and profits are projected to grow by 6% and 16.5% respectively for 2026.

And that’s a wrap!

Cheers,
James Yeo~