Electrical Infrastructure Stocks Surge as Data Center Demand Soars

Electrical infrastructure stocks like Powell Industries and IES Holdings have been on a tear, leading Forbes’ ranking of mid-sized companies. Right behind are names like Abercrombie & Fitch, Dutch Bros, Sweetgreen and Shake Shack.

he growing appreciation of artificial intelligence and anything related to it has been one of the main themes of 2024 for investors, highlighted by Nvidia rising to over $3 trillion in market capitalization, to become the world’s second most valuable company, but the semiconductor designer is far from the only company benefitting from the AI boom. Powell Industries, provides large-scale electrical infrastructure like power control rooms to service job sites. The majority of its $1 billion in annual revenue comes from oil and gas and petrochemical customers, but it has rapidly grown in its “commercial and other industrial markets” segment, which includes data centers, nearly tripling in a two-year span from $57 million in its 2022 fiscal year to $150 million in sales in its 2024 fiscal year ending in September. Companies building AI applications typically require complex and extensive computer systems housed in data centers. “Sales to data center customers have generally been smaller in scale and focused on individual products—however, as data centers grow in both physical size and computing power, the electrical energy demanded by these facilities will only grow in scale,” chairman and CEO Brett Cope said on its second-quarter earnings call. Powell’s stock is up 185% this year and more than 600% since the start of 2023, mirroring Nvidia’s rise, and its peers have been similar beneficiaries. IES Holdings, which generates close to half of its $2.9 billion in annual sales from electrical installations for residential housing, is also a growing player in powering data centers and slots in at No. 2 on our lis

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Electrical infrastructure stocks: Downside risks if Trump repeals EV tax creditElectrical infrastructure stocks: Downside risks if Trump repeals EV tax credit
Source: Investingcom - 🏆 450. / 53 Read more »

Small-Cap Stocks Surge to Record Highs, Drawing Investor InterestSmall-cap stocks have seen their best performance in years, with the S&P Small-Cap 600 Index reaching record highs and gaining almost 11% in November. ETF experts predict this resurgence could attract more investors back to the sector.
Source: NBCDFW - 🏆 288. / 63 Read more »

Small-Cap Stocks Surge: First Record High in Three Years Signals Investor ComebackSmall-cap stocks are experiencing a resurgence, hitting a record high for the first time in three years. The Core S&P Small-Cap ETF, up nearly 11% in November, is leading the charge, indicating a potential shift in investor interest back towards small-cap funds.
Source: NBCPhiladelphia - 🏆 569. / 51 Read more »

Stocks Week Ahead: Extreme Optimism in Markets Could Meet a Volatility SurgeMarket Overview Analysis by Michael Kramer covering: Euro US Dollar, British Pound US Dollar, US Dollar Japanese Yen, US Dollar Swiss Franc. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Sports betting stocks score in November as DraftKings, Flutter surgeDraftKings and Flutter Entertainment stocks have gained more than 20% over the past month.
Source: FXStreetNews - 🏆 14. / 72 Read more »

Gold Stocks and Gold – Surge in Silver Signals End of RallyCommodities Analysis by Sunshine Profits (Przemyslaw Radomski, CFA) covering: Gold Spot US Dollar, Silver Spot US Dollar, Gold Futures, Copper Futures. Read Sunshine Profits (Przemyslaw Radomski, CFA)'s latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »