Once a niche tech theme, artificial intelligence (AI) is now a defining global investment trend as tech giants and sovereign nations race to massively expand computing power, data centre footprints, and chip manufacturing capacity.
But recent market volatility forced many AI supply-chain-related companies to undergo brutal recalibrations in valuation multiples.
Not every such company will benefit equally from the AI theme. Still, for quality enablers – those with competitive moats, pricing power, recurring revenues, and balance sheet resilience – market volatility simply means greater upside opportunities for fundamental-focused investors.
These three SGX-listed stocks could make the cut as such quality enablers.
Keppel DC REIT (SGX: AJBU): Powering High-Density AI Workloads
The exponential growth of AI workloads into the megawatt (MW)-per-rack scale calls for a complete overhaul of traditional data centres (DC), which were typically designed to handle only kilowatt (kW)-scale racks, benefiting Keppel DC REIT.
Keppel DC REIT is a key player in this fundamental shift of data centre infrastructure.
In the first nine months of 2026 (9M2026), the REIT’s gross revenue surged 13.3% year on year (YoY) to S$365.3 million, driving net property income up comparably by 13.1% to S$316.8 million.
Positive rental reversions and escalations, alongside accretive acquisitions, contributed to the strong operating performance.
All told, Keppel DC REIT’s 9M2026 distribution per unit (DPU) was raised by 11.7% YoY to S$0.08571 – that’s an annualised distribution yield of 5.2% at a unit price of S$2.20.
As Asia’s first pure-play data centre REIT, Keppel DC REIT has S$7.6 billion in assets under management (AUM), spanning 27 DCs across 10 countries, with a 93.4% occupancy rate and a long 6.6-year weighted average lease expiry (WALE).
With a leverage ratio of 36.2% and an average debt cost of 2.6% for 9M2026, the REIT’s distributions are backed by a strong balance sheet.
With the recently-completed S$1.37 billion acquisitions of Tokyo Data Centres 4 and 5 generating immediate 2.0% DPU accretion, Keppel DC REIT’s growth remains unabated.
UMS Integration Limited (SGX: 558): Unmatched Precision Tooling for Front-End Semiconductor Giants
Global semiconductor equipment sales are projected to reach US$229.5 billion in 2028, benefiting precision-engineering semiconductor partners such as UMS.
Long known for its high-profile partnership with Applied Materials (NASDAQ: AMAT), UMS has onboarded a second major global semiconductor equipment customer, believed to be Lam Research. This transforms UMS into a dual-engine growth story.
In the first half of 2026 (1H2026), UMS’s revenue rose 25% YoY to S$156.5 million, while net profit surged 66% to S$33.4 million, powered by its high 54.2% gross material margin in the second quarter of 2026 (2Q2026).
Amid renewed interest rate hikes, UMS recently raised S$140.8 million via a private placement to fund its factory expansion in Penang, rather than taking on more debt.
This prudent financing allows the company to operate with a net cash position of S$29.3 million and no interest-bearing bank borrowings as of 30 June 2026.
For investors, UMS is a targeted bet on globally rising chip equipment spending.
AEM Holdings Ltd (SGX: AWX): High-Power Thermal Control and System-Level Testing for Next-Generation AI Chips
As semiconductor architectures shift to nodes of 3nm and lower, testing AI chiplets is becoming exponentially more complex than before.
This complexity calls for a robust System-Level Testing (SLT) solution to detect potential failures due to thermal stress.
AEM addresses this with its high-parallel SLT systems, which feature a proprietary PiXL dynamic thermal regulation engine, and achieve precise, reliable, active thermal control.
AEM’s 1H2026 revenue was up 29.9% YoY to S$247.2 million, while net profit jumped 875.6% to S$30.8 million, driven by top-line growth of 52.5% from its Test Cell Solutions segment.
With an order backlog that exceeded S$400 million for its AMPS platform, management remains optimistic about AEM’s growth momentum, having upgraded its FY2026 revenue guidance to a range of S$630 million to S$680 million from S$550 million to S$600 million previously.
Furthermore, AEM’s partnership with ASE Technology Holding Co. Ltd (NYSE: ASX) – the world’s largest outsourced semiconductor assembly and test (OSAT) provider – enables AEM to deliver its disruptive test solutions for the rising AI and High-Performance Computing (HPC) markets through ASE’s world-class manufacturing scale.
As investors are increasingly concerned with US tech titans’ mounting leverage, AEM sets itself apart with a strong balance sheet, supported by S$56.6 million in net cash and a low 0.05x debt-to-equity ratio.
Get Smart: Navigating the AI Cycle with Fundamental Strength
Market corrections provide investors with an opportunity to discern whether the pullbacks are justified by declining fundamentals or simply driven by short-term sentiment.
While Singapore may not have homegrown AI chip designers, the tiny city-state holds its own with companies that play key supporting roles for US-based, mover-and-shaker AI enablers.
Keppel DC’s income is defensible as high-density compute continues to be in short supply.
While UMS captures the expanding front-end equipment spending, AEM benefits as thermal testing becomes almost non-negotiable for mission-critical chip deployments.
Both UMS and AEM also operate with an enviable net cash position and low debt.
The headlines feel worse than the market itself.
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Disclosure: Larry L. owns units of Keppel DC REIT.
