While the market continues to reward companies with exposure to the booming AI data center infrastructure spending, a deeper analysis reveals significant long-term value in companies positioned for the subsequent phase: AI inference. This shift, where trained AI models run applications, is expected to drive substantial growth for specific industrial players. Among these, ON Semiconductor (NASDAQ: ON) and Rockwell Automation (NYSE: ROK) stand out as two ‘hidden’ stocks with promising prospects, according to analysis published by Lee Samaha for The Motley Fool on June 29, 2026.
Hidden Potential in AI Inference
These two companies are identified as ideal investment considerations for long-sighted investors for three primary reasons. First, their current AI exposure remains relatively low, contributing to their ‘hidden’ status among many investors. This is partly reflected in their lagging share-price performance relative to other highly visible AI data-center plays in the industrial sector, such as Vertiv, Comfort Systems, and GE Vernova. Second, despite this initially small exposure, their AI-related revenue is experiencing rapid growth and is projected to become a significant contributor to profitability within a few years. Third, both ON Semiconductor and Rockwell Automation are strategically positioned to benefit from the assured long-term growth in inference spending, a phase that will naturally follow the medium-term heavy investment in AI data center build-outs, albeit through different mechanisms.
ON Semiconductor’s Power Play in AI Data Centers
ON Semiconductor, a prominent power and sensing chip company, is primarily recognized for its strong presence in the automotive sector, particularly electric vehicles (EVs), advanced driver assistance systems, and EV charging, as well as industrial markets like factory automation and energy infrastructure. However, the company is also a crucial Nvidia partner and a key supplier of power chips essential for the next generation of AI data centers. CEO Hassane El-Khoury defines the company’s AI data center revenue as encompassing everything ‘within the walls of the data center,’ a definition he suggests might be conservative given its involvement in ‘microgrid and the energy storage’ markets. In 2025, ON Semiconductor’s AI data center revenue reached approximately $250 million, constituting about 4.2% of its total $6 billion revenue.
Looking ahead, El-Khoury anticipates this figure to double in 2026, projecting $500 million. When juxtaposed with the Wall Street consensus of $6.48 billion in overall revenue for 2026, this would elevate AI’s share to 7.7% of the company’s total revenue. Notably, the projected $250 million growth in ON’s AI data center revenue for 2026 significantly outpaces the $228 million growth expected from the rest of its revenue streams. While auto and industrial end markets are anticipated to inflect in 2026, management confirms that AI data center revenue, reported within the ‘other’ end market, is set to ‘grow as a percentage of the pie’ in the future. This growth trajectory is further supported by the increasing demand for power in edge inference applications across diverse environments, including enterprises, manufacturing, EVs, and life sciences, extending beyond traditional data centers.
Rockwell Automation’s Edge in Industrial Inference
Rockwell Automation, a leader in industrial automation, exemplifies a company strategically embedding inference models directly into its technology, empowering customers to deploy these models across their operational landscapes. Renowned for its industrial automation hardware, controllers, and software, Rockwell’s solutions are applied across a broad spectrum of industries and end markets, from energy and mining to life sciences, food and beverage, automotive, and semiconductors. The company’s partnership with Nvidia is pivotal, facilitating the integration of Nvidia’s applications into Rockwell’s software. This collaboration enables industrial and manufacturing clients to construct ‘digital twins’ of their physical operations. By simulating performance in a virtual environment, these digital twins allow companies to identify and implement significant operational improvements. The embedding of AI within Rockwell’s solutions is expected to substantially enhance the value proposition of its automation offerings through AI inference, thereby optimizing the efficiency and effectiveness of automated processes. Rockwell Automation is thus positioned to directly benefit from the burgeoning growth of AI inference in industrial settings.
The investment landscape for AI-exposed stocks is abundant, yet the critical consideration remains valuation, particularly after the initial phase of substantial investment in AI data centers. ON Semiconductor and Rockwell Automation offer a compelling narrative for long-term investors, as both are poised to capitalize on the sustained spending on AI inference. ON Semiconductor is set to benefit from the direct provision of power chips for inference, while Rockwell Automation will see gains from the integration and growth of inference capabilities within its industrial automation solutions. This strategic alignment with the evolving AI expenditure cycle positions them as attractive options beyond the immediate data center build-out boom.
