Smaller Indian companies linked to data centers and Artificial Intelligence infrastructure have become some of the biggest stock market winners in 2026, though India does not have many major AI software or semiconductor companies.$47 billion added by AI infrastructure firms in India, report finds (Unsplash/Repersentative) (Unsplash)These companies are benefiting from the huge amount of money being spent worldwide on building AI infrastructure such as data centers, as per a report by the Bloomberg.The biggest example is Sterlite Technologies Ltd., an optical-fiber company owned by the Vedanta Group. Sterlite Technologies' shares have jumped more than 530% in 2026, stated in the report by Bloomberg. The company received a $1.1 billion multi-year contract from a US-based hyperscaler in May 2026. Sterlite's rival HFCL Ltd. has seen its shares rise 191% this year, according to Bloomberg.AI stocks lead the rallyMTAR Technologies Ltd., which makes precision cooling and power components, has more than tripled in value this year. Bloomberg tracked 28 Indian companies connected to the data-center supply chain, including makers of transformers, switchgear, wires, cables and cooling equipment. Together, these 28 companies have added around $47 billion in market value in 2026. Their combined market value has increased nearly 50% this year.ALSO READ: Abhijeet Dipke's CJP gets new supporters ahead of big Delhi protest: Check namesInvestors in Mumbai have started calling this trend the "AI capex trade". R. Sivakumar, Chief Investment Officer at Axis Mutual Fund, told Bloomberg that India may not be leading the AI software race but could benefit from the spending on AI infrastructure. Sivakumar said investors should look at companies connected to data centers and the wider infrastructure supply chain.Big tech bets on IndiaGlobal technology giants are investing billions of dollars in India's AI and cloud infrastructure. Amazon plans to invest $12.7 billion in cloud infrastructure in India by 2030. Alphabet is investing around $15 billion in an AI infrastructure hub in Visakhapatnam. A joint venture involving Reliance Industries signed an $11 billion agreement in 2025 to build local data centers. AdaniConnex has partnerships with Google and Uber Technologies to help build data centers.ALSO READ: Captain proposal row: Retd Army officer HS Panag recalls how he handled such casesAnalysts at Nomura said the biggest opportunity is in companies that supply the equipment needed to build, power and cool data centers, notes Bloomberg from a previous report. Nomura described these suppliers as the "picks and shovels" of the AI boom. Nomura said some components now have delivery waiting periods of two to four years because demand is so high.This shortage has created a strong seller's market for equipment manufacturers. Nomura said many orders being won today will generate revenue between 2027 and 2029, as cited in the report by Bloomberg.India has been one of the weaker-performing stock markets globally because it lacks large AI-focused companies and semiconductor manufacturers. However, India's industrial companies are benefiting from the growing need to support global AI infrastructure. Companies such as Hitachi Energy India Ltd., ABB India Ltd. and Cummins India Ltd. are among the beneficiaries of this trend.Brokerage Angel One said investors increasingly believe AI is creating a long-term infrastructure investment cycle, not just a software opportunity. Angel One said this belief is driving the sharp rally in companies like Sterlite and MTAR. Angel One estimates global investment in hyperscale data centers could exceed $1.2 trillion between 2025 and 2027.ALSO READ: Shehbaz Sharif says Pakistan ‘forever grateful’ to Trump for India ceasefire, calls him ‘man of peace’AI stock rally faces valuation riskAngel One said the market is rewarding companies that are already showing AI-related earnings rather than those only talking about AI opportunities. Angel One warned that high valuations are becoming a risk because many stocks have already surged sharply. The brokerage said there is little room for mistakes or disappointing results at current prices.Sterlite Technologies is trading at around 70 times expected earnings for the next 12 months. By comparison, the NSE 500 index trades at about 19 times forward earnings. Despite concerns about valuations, analysts remain highly positive about the long-term opportunity.Nomura described data-center spending as the biggest industrial investment cycle in the world today. Nomura said the current data-center boom is larger than the global 4G wireless rollout, the LNG infrastructure expansion after 2008 and the shale boom of the early 2010s. The main takeaway is that while India may not have many global AI software champions, a large group of industrial and infrastructure companies are quietly making huge gains from the global race to build AI data centers.