The AI infrastructure trade has broadened well beyond hyperscalers and GPU designers. Institutional money is moving into the layer beneath: box builders, interconnect chips and precision sensors. Three names stand out heading into July, each with fresh Q1 2026 numbers that argue the setup is stronger than current prices reflect.
Celestica (CLS): The Hyperscaler Supply Chain Sleeper
Celestica (NYSE:CLS | CLS Price Prediction) has become the quiet backbone of hyperscaler networking. Q1 revenue hit $4.05 billion, up 52.8% year over year, with adjusted EPS of $2.16 versus the $2.08 consensus. That marks the fourth consecutive EPS beat.
The Connectivity & Cloud Solutions segment carried the quarter with $3.24 billion in revenue, up 76% year over year, while Hardware Platform Solutions grew 63%. Adjusted operating margin expanded to 8.0%, a new company milestone. Management raised 2026 outlook to $19.0 billion in revenue and $10.15 in adjusted EPS, meaningful step-ups from prior $17.0 billion and $8.75 targets.
CEO Rob Mionis was direct on trend durability: “We continue to see accelerating growth from our CCS customer base… Our outlook for 2027 also continues to strengthen from just 90 days ago.” A new Co-packaged Optics Ethernet switch program with a hyperscaler is set to ramp in 2027.
On July 22, shares traded around $335.92, up 11.08% year to date and more than 114% over the past year. Analyst consensus target sits at $444.11, with 20 of 21 covering analysts rated Buy or Strong Buy. At 33x forward earnings, the multiple is defensible against a raised guide.
The risk: Customer concentration is elevated, with three customers representing 36%, 15%, and 12% of Q4 revenue. A CapEx ramp to approximately $1 billion in 2026 introduces execution risk if hyperscaler orders slip.
Vishay Precision Group (VPG): The Overlooked Sensor Play
At a market cap near $1.64 billion, Vishay Precision Group (NYSE:VPG) is the classic under-the-radar name here. Only two analysts cover it, both rated Buy, with a target of $94.67.
Q1 fiscal 2026 reset expectations. Revenue reached $84.35 million, beating consensus of $77.08 million by 9.43%, up 17.6% year over year. Adjusted non-GAAP diluted EPS came in at 7 cents versus a 0-cent consensus. Bookings matter more: $102.08 million, up 25.5% sequentially, the third-highest quarterly level in company history, with a consolidated book-to-bill of 1.21 and Sensors book-to-bill of 1.36.
The AI angle is real. Sensors bookings jumped 29.0% sequentially on demand from semiconductor equipment, data centers, avionics, and military/space. Humanoid robotics orders reached $1.0 million in Q1, and full-year 2025 growth initiative bookings landed at $37.8 million versus a $30 million target. CEO Ziv Shoshani noted “all three segments reported book-to-bill ratios well in excess of 1.0.”
Shares traded around $110.62 on July 22, up nearly 182% year to date and around 297% over the past year. That gain explains why the descriptor here is “overlooked” rather than “cheap.”
The risk: Valuation is stretched. Forward P/E sits at 135x, well above small-cap sensor peers. Q1 operating cash flow turned negative at -$596,000, and analysts flagged unusual items in reported profits. Israel-based operations add geopolitical exposure.
Astera Labs (ALAB): AI Connectivity With Room to Run
Astera Labs (NASDAQ:ALAB) is the most heavily covered name here. This pick reflects an under-appreciated growth runway relative to current 2026 estimates.
Q1 fiscal 2026 revenue hit a record $308.36 million, up 93.4% year over year and 14% sequentially. Non-GAAP diluted EPS came in at $0.61 versus $0.54 consensus, a 13.47% beat, extending the streak to four consecutive EPS beats. GAAP gross margin expanded to 76.3%. Full-year 2025 revenue landed at $852.5 million, up 115% year over year.
CEO Jitendra Mohan tied acceleration to product mix: “Revenue growing by 14% sequentially and 93% year-over-year to a record level of $308.4 million, driven by robust demand for our PCIe 6 portfolio.” The newly launched Scorpio X-Series 320-lane Smart Fabric Switch targets a $20 billion merchant scale-up market by 2030. Q2 2026 guidance calls for $355 million to $365 million in revenue and $0.68 to $0.70 in non-GAAP EPS.
Shares traded around $327.32 on July 22, up more than 82% year to date and nearly 180% over the past year. Analysts responded to Q4 results by raising 2026 revenue forecasts roughly 13% to approximately $1.3 billion.
The risk: Valuation is the entire debate. Trailing P/E is 296x and forward P/E is 147x. Q2 gross margin is guided to compress to roughly 73% from 76.3% as new switch products ramp, and stock-based compensation runs at $48.9 million per quarter. A beta of 3.671 means volatility works both ways.
What to Watch Next
Each reports Q2 results in coming weeks. The throughline is the same: hyperscaler CapEx is still expanding, and money is flowing into the infrastructure layer beneath the GPU. Celestica offers scale and cash flow, Vishay Precision Group offers small-cap torque on humanoid robotics and sensor demand, and Astera Labs offers pure-play exposure to PCIe 6 and scale-up fabric switching. Position sizing should reflect where each sits on the risk curve.
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