Six Old Economy Stocks Join $100 Billion Club on AI Boom

Six established companies, previously considered "sleepy" or underperformers, have achieved market capitalizations exceeding $100 billion, driven significantly by the artificial intelligence (AI) boom. These "AI Centurions" have experienced dramatic stock performance increases, often from a much lower starting valuation, by supplying essential equipment and services to the rapidly expanding AI data center infrastructure. The analysis, which began around mid-July 2023, when hyperscalers started major AI data center expansions, identified companies that not only crossed the $100 billion market cap threshold but also achieved annualized returns of at least 100%.

General Electric's (GE) former power unit, GE Vernova, serves as a prime example. Spun off from GE in April 2024, it began with a market cap of $39 billion and surged to $288 billion by July 21. This significant growth is largely attributed to the AI explosion, which has created immense demand for its products and services. Similarly, Seagate Technology and Western Digital, both established players in data storage solutions, have seen their valuations skyrocket. Prior to the AI surge, these companies, along with Vertiv, which provides critical infrastructure for data centers, had registered tepid growth and weak profitability, with Seagate and Western Digital experiencing relatively flat share prices over the preceding decade.

Beyond GE Vernova, Seagate Technology, and Vertiv, the analysis identified three other notable companies that have joined the $100 billion market cap club. These include Western Digital's recent spinoff, SanDisk. The timeframe for evaluating some of these companies is shorter than the three-year benchmark. GE Vernova's spin-off occurred in April 2024, and SanDisk separated from Western Digital in February 2023. These companies, once considered "old economy" stalwarts, have effectively reset their trajectories onto a high-powered path by capitalizing on the groundbreaking advancements and infrastructure demands of the AI era. Their resurgence highlights a broader trend of traditional industrial and technology companies finding new avenues for growth and valuation appreciation through their role in enabling the AI revolution.

The common thread among these companies is their critical role in supporting the infrastructure required for AI development and deployment. This includes providing high-capacity storage solutions, robust power and cooling systems for data centers, and other essential hardware components. As hyperscalers and enterprises continue to invest heavily in AI capabilities, the demand for these foundational elements has surged, leading to the remarkable financial performance of these formerly overlooked businesses. The AI Centurions demonstrate that innovation and adaptation within established industries can lead to extraordinary market success.