AI Data Center Suppliers Post Strong Growth as Stocks Slide
Five companies supplying equipment for AI data centers reported strong quarterly results as U.S. stocks moved lower on November 10, when the Bureau of Labor Statistics published October Consumer Price Index data. Their businesses span chip inspection, optical connectivity, manufacturing, cooling and backup power.
- October CPI rose 0.4 percent after a 0.6% increase in September.
- Onto Innovation reported third-quarter revenue of $410 million, up 88%.
- Coherent reported fiscal first-quarter revenue of $2.37 billion, up 50%.
- AAON raised its 2026 net sales growth outlook to 72%-75%.
- Generac said its data center product backlog reached approximately $4.5 billion.
Inflation data meets a weaker stock market
The Consumer Price Index for All Urban Consumers increased 0.4 percent on a seasonally adjusted basis in October, after rising 0.6 percent in September, according to the Bureau of Labor Statistics. The index for all items less food and energy rose 0.3 percent in October, matching its increases in September and August.
At 11:42 a.m. ET, the S&P 500 was down 57.20 points, or 0.76%, at 7,492.74. The Nasdaq Composite had fallen 269.19 points, or 1.07%, to 24,983.95, while the Dow Jones Industrial Average was down 357.50 points, or 0.68%, at 52,032.25.
The Bureau of Labor Statistics said it did not collect survey data for October 2025 because of a lapse in appropriations. As a result, it cannot publish 12-month percentage changes for October 2026 for indexes where October 2025 data are unavailable.
Results across the AI infrastructure chain
Onto Innovation reported third-quarter 2026 revenue of $410 million, up 88% compared with the third quarter of 2025. The company said Advanced Packaging and Specialty Devices achieved record revenue, driven primarily by its Dragonfly® G5 and Firefly® inspection systems. Onto expects fourth-quarter revenue of $430 million to $450 million. Its shares were up 1.41% at 11:42 a.m. ET.
Coherent reported fiscal first-quarter revenue of $2.37 billion, up 50% year over year, and said it expects fiscal 2027 pro forma revenue growth to exceed 60%. CEO Jim Anderson said, “As AI datacenters transition from copper to optical connectivity, Coherent's broad photonics platform and manufacturing scale position us to help customers meet rising needs for bandwidth and energy efficiency.” Coherent shares were down 3.34%.
Sanmina reported fourth-quarter revenue of $3.86 billion and fiscal-year revenue of $14.53 billion. It guided to fiscal 2027 revenue of $17.5 billion to $19.5 billion. The company said its fiscal 2026 revenue grew 79%, and its shares were up 3.12%.
Cooling and power demand add to the picture
AAON reported third-quarter net sales of $707.4 million, up 84.1%, while BASX-branded sales rose 218.3% to $397.2 million. Its backlog increased 40.5% year over year to $1.9 billion, and the company raised its 2026 net sales growth outlook to 72%-75%, from 55%-60% previously. AAON shares were up 22.41% at 11:42 a.m. ET.
The company also said it restated its first and second quarter 2026 financial statements after identifying errors through enhanced review and control procedures. It identified a material weakness in internal control over financial reporting and said remediation efforts are continuing.
Generac reported third-quarter net sales of $1.29 billion, up 16%, and Commercial & Industrial external net sales of $552 million, up approximately 28%. Its backlog for products to be sold to the data center market has grown to approximately $4.5 billion. Generac shares were down 3.30%.
Together, the reports show demand across several parts of AI data center construction, although the companies' share prices moved in different directions during the session. The figures and quotes were drawn from the companies' quarterly releases furnished to the Securities and Exchange Commission.
