AI Trade’s Next Leg Is All About Tech’s ‘Pick-and-Shovel’ Stocks

The artificial intelligence trade is moving, and investors seeking cutting-edge ways to play it are snapping up technology “pick-and-shovel” stocks as massive cloud service providers pour billions into new data centers.

Data storage companies dominated the S&P 500 Index in 2025, with Sandisk Corp. shares soaring almost 580% to make them the benchmark’s best performer, with Western Digital Corp. in second and Seagate Technology Holdings Plc in fourth. Meanwhile, AI-linked power providers and cable and fiber producers such as Amphenol Corp., Corning Inc., NRG Energy Inc. and GE Vernova Inc. were among the Top 25.

That’s a ...