AI infrastructure is enjoying a multi-year boom: four stocks to watch

February 13, 2026

The AI ​​infrastructure boom, driven by massive global and domestic investments in data centers, cloud computing and compute-intensive AI workloads, is becoming a multi-year theme in India.

This includes large-scale deployments of data centers, power/cooling systems, networking equipment and computing services, all essential to AI adoption.

The “AI infrastructure boom” is no longer just a global trend; it has landed firmly in India.

With the Union Budget 2026-2027 introducing tax exemptions for AI data centers and the India Semiconductor Mission 2.0 receiving new allocations, the focus has shifted from software services to the physical ‘picking and shoveling’ of the AI ​​era.

To capitalize on this multi-year boom, investors are looking at four key layers of the infrastructure stack…

1. The data center and the cloud backbone

Data centers are the ‘factories’ of the AI ​​era. Indian companies are moving from simple server enclosures to high-density AI-enabled facilities.

2. Energy and thermal management (cooling)

AI chips run incredibly hot, much hotter than traditional servers. Companies that supply the electricity and cooling for these chips are critical enablers.

3. Semiconductor design and hardware

While India is still building its first manufacturing plants (“fabs”), it is already a global leader in chip design and testing.

4. Connectivity and networking

AI requires massive amounts of data to move between servers instantaneously. Fiber optic and network hardware are the ‘highways’ for this data.

Now let’s take a look at four such companies that should ride the boom in the AI ​​infrastructure space.

#1 KRN heat exchanger and cooling

First on our list is the stock KRN heat exchanger and cooling.

The company is an example of a pick and shovel play for the AI ​​boom. While they don’t build AI models, they do provide the crucial cooling infrastructure.

The company will move from traditional HVAC (heating, ventilation and air conditioning) to high-performance data center cooling, which is the “hidden bottleneck” of the AI ​​expansion.

KRN Heat Exchanger and Refrigeration specializes in the production of fin and tube heat exchangers for the HVAC&R industry.

How the AI ​​boom is driving growth at KRN Heat Exchanger and Refrigeration

According to management, by the end of the third quarter of FY26, nearly 15% of the company’s revenue was generated solely from data centers.

Over the past two months, KRN Heat Exchanger and Refrigeration has witnessed a steady influx of significant orders, with some large orders coming exclusively from data centers.

Management expects data centers to contribute significantly to the company’s overall growth over the next three to four years.

The company recently released its Q3 FY26 numbers. Throughout the quarter and nine-month period, the company made steady progress in its core businesses, driven by consistent execution and improved order visibility. Demand from both domestic and export customers remained healthy.

KRN Heat Exchanger and Refrigeration reported revenues of Rs 1,532 mln versus Rs 1,115 mln YoY, showing an increase of 27%.

Net profit also rose to Rs 227 mln versus Rs 137 mln YoY. The company saw gross profit margins improve to 20.5% versus 14.2% as the company kept costs under control.

During the quarter and nine-month period, demand was strong in India and key export markets including the UAE, US, Canada and Europe.

Looking ahead, management says it is confident of maintaining this momentum. With a stable order pipeline, growing export activities and continued emphasis on operational efficiency, they believe the company is well positioned to grow steadily and strengthen its revenue base in the coming periods.

In the last five trading sessions, shares of KRN Heat Exchanger and Refrigeration have risen from Rs 669 to Rs 734.

The stock touched its 52-week high of Rs 1,009.9 on March 5, 2025 and a 52-week low of Rs 589.75 on January 27, 2026.

To learn more, see KRN’s Heat Exchanger and Cooling fact sheet and the latest quarterly results.

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