(Bloomberg) -- While the reaction to Nvidia Corp.’s results showed that Wall Street remains laser-focused on artificial intelligence, investors are increasingly looking beyond the usual suspects to find the next AI winners.

There is growing recognition that expanding AI infrastructure won’t simply benefit chipmakers like Nvidia or server companies like Super Micro Computers Inc., but will have implications for a variety of sectors. 

Makers of electrical components such as Amphenol Corp. have rallied, while real estate investment trusts that focus on data centers are expected to see increasing demand as AI usage grows and more workloads shift to the cloud. Notably, the energy required to run AI is expected to result in upside for utilities and other companies connected to the power grid.

“I never believed that it would affect electricity prices this much, but people are talking multi-gigawatt expansions here,” said Brian Frank, president of Frank Capital Partners. “It’s bleeding into my energy and utility stocks.”

AI is “the growth engine right now of everything,” including beyond tech.

According to strategists at Goldman Sachs Group Inc., hedge funds have increased their exposure to a broader set of potential AI winners, including in the infrastructure and utility sub-industries, while trimming exposure to the Magnificent Seven. Companies that have seen jumps in popularity include Littelfuse Inc., which makes circuit-protection devices, AES Corp., an electric utility, and technology supply-chain services company TD Synnex Corp.

Read More: Hedge Funds Trim Big Tech Exposure in Hunt for Other AI Winners

“Money’s not leaving the market. It’s just being reshuffled,” said Louis Navellier, chief investment officer at Navellier & Associates, noting strength in electricity grid and cloud-related firms. 

A Goldman basket related to growing demand for power has soared 40% this year, and is up 0.8% on Friday, while one for AI-exposed hardware stocks is up 27%, including a 0.7% gain on Friday. The Bloomberg Magnificent 7 Total Return Index has gained 24% and the Nasdaq 100 Index has risen 11%.

Bank of America says the AI trade is “not just about Nvidia anymore,” and it predicts a “virtuous cycle” related to AI investments. “AI benefits are broadening out to power, commodities and utilities,” it wrote. “Fundamentals are broadening out and so should the market.”

Among arguably lower-profile AI stocks, Amphenol has risen 40% this year, hitting records and splitting its stock. AES has risen 30% off an April low, while TD Synnex is on track for its biggest monthly gain since November 2022. Power producer Vistra Corp. is up 150% as investors expect AI will fuel demand for electricity. AXT Inc., a maker of compound semiconductor substrates, is up 35% this year following a pair of post-earning rallies.

“There’s a lot that’s required for AI, and if you’re specializing in one of the components, then being niche can be impactful,” said Pedro Palandrani, director of thematic research at Global X.

Gains have been less pronounced in data center REITs. Digital Realty Trust Inc. is up 5.8% this year while Equinix Inc. is down 4.2%. 

AI has been a central driver of equity gains, with big tech leading the charge. Nvidia in particular is seen as the poster child for the technology, up more than 90% this year. The firm gave its latest blowout forecast on Wednesday, a sign of enduring demand.

Other megacap AI plays — notably Meta Platforms Inc., Microsoft Corp., and Alphabet Inc. — have also posted double-digit returns this year. However, the tailwind for those stocks is widely known, which could suggest greater upside potential among smaller or more obscure names.

“Megacaps are the starting point for AI, but if you’re just in them you’re missing the real growth opportunity,” said Rene Reyna, head of thematic ETF strategy for Invesco. “When you think of AI implementation, there’s a meaningful segment of the market beyond the megacaps playing a major role and generating strong revenue. It cuts across arguably every industry.”

Tech Chart of the Day

While Intel Corp. was bigger than Nvidia as recently as 2020, the fortunes of the two chipmakers have diverged dramatically. Nvidia’s market capitalization tops $2.5 trillion, compared with Intel’s at $128 billion. The gap between the two is so large that Nvidia’s 9.3% rally on Thursday added almost $218 billion to its market cap, bigger than Intel’s total valuation.

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Earnings Due Friday

• No major earnings expected

(Updates to market open.)

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