The artificial intelligence sector has experienced significant volatility in 2026, with many high-flying stocks pulling back sharply from previous peaks. Despite these corrections, three companies—Vertiv (VRT), Applied Optoelectronics (AAOI), and Innodata (INOD)—are trading well below their annual highs while maintaining strong fundamental momentum. This market weakness may present compelling opportunities for investors looking to gain exposure to the rapidly expanding AI ecosystem.
Vertiv (VRT): Powering the Digital Infrastructure Boom
Vertiv plays a critical role in enabling modern data centers by providing essential digital infrastructure, including power management, thermal management, liquid cooling, and other specialized equipment. As AI workloads continue to drive unprecedented power densities, the demand for Vertiv’s solutions has never been more crucial.
The company’s recent financial performance underscores its robust growth trajectory. In the latest quarter, sales climbed 24% year-over-year to $3.27 billion, while adjusted earnings per share (EPS) surged by 60%. Encouraged by strong market demand, management raised its full-year outlook, now projecting organic sales growth of 30% to 32% in 2026. Although VRT shares have cooled significantly from their recent highs, the long-term outlook remains highly constructive as AI-driven data center investment continues to accelerate.
Applied Optoelectronics (AAOI): High-Speed Connectivity for the AI Era
Applied Optoelectronics specializes in high-speed optical networking products essential for data center interconnects, directly benefiting from the ongoing boom in AI infrastructure buildout. The company’s latest quarterly results revealed spectacular growth, with revenue soaring 86% year-over-year to a record $191.9 million. This marked the fifth consecutive quarter of record revenue, driven by a more than 140% jump in data center sales and a sequential doubling of 800G product volumes.
Looking ahead, management expects demand for its advanced 800G and 1.6T optical products to consistently outstrip production capacity through at least mid-2027. While the stock has experienced a sharp pullback from its 2026 peak, this pullback offers an interesting entry point for investors comfortable with the stock’s elevated volatility profile.
Innodata (INOD): Enabling the AI Development Lifecycle
Innodata provides a distinct avenue for AI exposure, specializing in data engineering and AI services that support model development, training, and evaluation. The company’s latest financial release highlights impressive execution, delivering record quarterly revenue of $92.1 million—a 58% year-over-year increase—alongside a 92% surge in adjusted EBITDA. Furthermore, ongoing customer diversification has successfully mitigated key concentration risks associated with the business.
Despite a significant pullback in its share price, management’s highly bullish guidance remains intact, projecting at least 40% revenue growth for the full year 2026. The combination of rapid operational execution and a depressed stock valuation makes Innodata a standout candidate in the AI services space.
The Bottom Line
Vertiv, Applied Optoelectronics, and Innodata have all undergone healthy pullbacks from their 2026 peaks, despite continuing to deliver strong operational and financial performance. Each company offers unique exposure to different segments of the AI buildout, from essential power and cooling infrastructure to high-speed optical networking and data services. While these resets do not eliminate inherent sector risks, they have significantly improved the risk-reward profile for long-term investors seeking to capitalize on the long-term growth of artificial intelligence.
