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Quanta Services, Inc. (NYSE:PWR) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer called the company an “obvious winner when you want to build out the electric grid,” as he stated:
I’m going to go down, literally go down the S&P’s top gainers today. I’m doing a little bit of order that changes just so we can get the narrative right, but let’s see if they’re representative of anything other than the data center, even if they’re involved in it. So let’s start with Quanta Services, PWR. This stock soared nearly 16% today. That’s a big gain. It’s an installer of power lines and infrastructures of all kinds. Quanta’s been a decent company for a long time. It’s been worth owning, but it’s been roaring because it’s the obvious winner when you want to build out the electric grid.
Management explains this very clearly right at the beginning of this incredibly stunning positive conference call they had today, “Utilities are being asked to double in size. Technology customers are demanding speed at scale they haven’t dealt with before.” See, this is a whole new way our country’s doing business. A rally that includes Quanta tells you that the data centers about a lot more than just the semiconductors and disk drives. Data centers are like giant mouths that must be fed with constant activity and never-ending electricity.
We know there are many ways for the utilities to produce more energy, the most frequent being converting natural gas to a GE turbine that’s connected to the grid. Quanta builds that. They can also build the other end where the grids connect to the data center. Quanta does this with American labor.
A stock market data. Photo by AlphaTradeZone on Pexels
Quanta Services, Inc. (NYSE:PWR) provides engineering, construction, and maintenance for energy and communication systems, including electrical grids, renewable power plants, and natural gas pipelines.
While we acknowledge the potential of PWR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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