We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 AI Power Stocks to Buy Now for Growth, Value and Breakout Potential
Key Takeaways
MYRG is a Zacks Rank #1 (Strong Buy) electrical construction contractor riding AI growth and more.
Quanta builds transmission lines, distribution networks, and other critical infrastructure.
Powell manufactures equipment and systems that mange, control, and distribute electrical energy.
Investors should consider buying best-in-class AI energy/power stocks in September and holding them for long-term upside.
The three stocks we dive into today—MYR Group, Quanta Services, and Powell Industries—are churning out massive AI-boosted earnings and revenue growth as hyperscalers, Wall Street, and the U.S. government race to expand energy generation and the grid that was in dire need of investment before the energy-hungry AI arms race.
There won’t be an AI-driven economy that the hyperscalers, Wall Street, and the U.S. government are betting on without an all-hands-on-deck expansion of the energy and utilities sectors, since generative AI like ChatGPT uses 10X more energy than a traditional Google search.
The next decade will require more new energy generation than any period in U.S. history as big tech spends trillions of dollars on AI data centers that guzzle as much power as mid-sized cities.
Today we break down three of the best stocks to buy and hold in the broader AI-boosted energy industry that boast impressive fundamentals and are trading ~20% to ~45% below their all-time highs.
Best Buys on Wall Street: AI-Boost Energy and Electricity Infrastructure Stocks
AI spending is fueling Wall Street and real-world economic growth, meaning investors must continue to buy and hold AI stocks.
Yet, buying technology stocks that are surefire long-term AI winners outside of a handful of stocks like Nvidia and Taiwan Semiconductor is no easy task considering how rapidly the technologies and their use cases are changing.
What appears certain is that the AI spending spree is heating up. Despite AI bubble fears, $750 billion in new AI-centric capex spending initiatives were announced in August alone, highlighted by Nvidia’s $500 billion effort alongside Wall Street titans. This money is set to flow into chips, data centers, vital rare earths, and perhaps most critically, energy generation and the grid.
The AI arms race, combined with electrification and the reshoring of critical manufacturing such as semiconductor fabrication, is projected to increase U.S. electricity demand 50% or more by 2050—some reports see 100% growth over the next 25 years.
Quanta Services: Best AI Energy Stock to Buy Now and Hold Forever?
First off, energy infrastructure powerhouse Quanta Services, Inc. (PWR - Free Report) doubled its revenue and its GAAP (and adjusted) earnings from 2021 to 2025.
More importantly in the forward-looking world of Wall Street, PWR’s management said it’s on a “clear path to more than doubling” its adjusted EPS again by 2030 vs. its 2025 levels.
Image Source: Zacks Investment Research
The specialty contractor designs, builds, and maintains transmission lines, substations, distribution networks, generation interconnects, and other critical energy infrastructure across North America.
Quanta closed Q2 with a record backlog of $53.4 billion as it helps physically build critical utility and energy infrastructure. PWR’s upbeat post-Q2 EPS revisions (+17% improvement for 2026 and +15% for 2027) earn Quanta a Zacks Rank #1 (Strong Buy).
PWR is expected to grow its revenue by 38% in 2026 and 15% in 2027 to climb from $28.5 billion in FY25 to $45.3 billion in 2027. Our most recent Zacks estimates call for the electric-grid infrastructure firm to grow its adjusted earnings by 52% this year and another 16% next year, putting it well on its way to doubling its EPS between 2025 and 2030.
Image Source: Zacks Investment Research
The energy infrastructure stock has climbed 45% in 2026 as part of a ~2,400% run in the last decade. This market and industry-crushing run includes PWR’s ~20% fall from its May peaks as investors took profits after a massive rally.
Its average Zacks price target implies ~30% upside from its current price, and PWR found technical support at its 200-day moving average in late July.
Once Quanta breaks out above its 50-day and its pre-May breakout levels, it could be ready to charge back up toward its peaks and beyond. Its strong earnings growth outlook, mixed with its healthy pullback, has PWR trading at a 40% discount to its highs at 36.9X forward 12-month earnings.
Image Source: Zacks Investment Research
PWR is also expanding its free cash flow, and its sturdy balance sheet helped it announce a new $1 billion stock repurchase program in late May.
All in, investors should consider buying Quanta as an AI energy stock ready to capture more of what its management views as a total addressable market of $2.4 trillion through 2030.
Buy Electrical Infrastructure Stock POWL for 85% Upside and AI-Boosted Growth
Powell Industries, Inc. (POWL - Free Report) manufactures custom-engineered equipment and systems that manage, control, and distribute electrical energy.
Put differently, POWL builds the specialized electrical “plumbing,” such as power control room substations, electrical houses, medium-voltage circuit breakers, and much more. Its electrical equipment takes high-voltage power and safely distributes it across power generation facilities, large data centers, and beyond.
Image Source: Zacks Investment Research
POWL doubled its revenue between 2022 and 2025. It also expanded its GAAP earnings by a mind-blowing ~1,200% from $0.38 to $4.95 a share during that same period.
Powell grew its backlog by 69% YoY to $2.4 billion during its third quarter of fiscal 2026. Its growth was highlighted by its previously announced “megadata center order with a value in excess of $400 million,” and two additional megaorders.
Image Source: Zacks Investment Research
The electrical infrastructure firm is projected to expand its EPS by 8% this year and 28% next year on 8% and 22% revenue growth, respectively.
Powell’s free cash flow expansion showcases its thriving business. On top of that, its stellar balance sheet is highlighted by $634 million in cash and short-term investments against near-zero debt and $651 million in total liabilities—vs. $1.4 billion in total assets.
POWL stock has surged ~2,000% in the past five years, including its ~45% drop from its May highs. The stock pulled back after it grew far too overheated. But its long-term outlook shows why investors should remain bullish, especially after its healthy selloff.
Image Source: Zacks Investment Research
Powell offers ~85% upside if it ever returns to its all-time highs, and its average Zacks price target implies 72% upside. It is attempting to find support at its 50-week moving average, while trading at some of its most oversold RSI levels in the past 10 years.
The downturn, mixed with its strong earnings outlook, has it trading nearly in line with its industry and at a ~55% discount to its highs at 26.5X forward earnings.
Best Under-the-Radar AI-Boosted Infrastructure Stocks to Buy Now: MYRG
MYR Group Inc. (MYRG - Free Report) builds, maintains, and repairs high-voltage power lines, substations, and a wide range of other vital electrical infrastructure that keep the grid running and growing.
The electrical construction contractor is riding long-term industry trends across grid hardening and expansion, electrification, nuclear energy and renewable integration, the rapid build-out of power-hungry data centers, and beyond.
Image Source: Zacks Investment Research
The specialty electrical contractor more than doubled its revenue between 2018 and 2023 and roughly tripled its adjusted earnings. MYRG posted strong growth again in 2025 after setbacks in 2024. MYR Group reported a beat-and-raise quarter at the end of July, with its backlog up 20% YoY.
MYRG is projected to grow its adjusted earnings by 61% in 2026 and 13% in 2027 on 22% and 13%, respective sales expansion. Its recent wave of upward earnings revisions land the stock a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The electric construction stock surged ~1,500% over the last 15 years, crushing the Utilities sector and the S&P 500. The stock climbed nearly 60% in the past 12 months vs. the S&P 500’s 17%.
Yet, investors can buy MYRG down ~43% from its highs and around where it was in March. MYRG’s average Zacks price target implies 50% upside, and it would have to climb around 80% to return to its all-time highs.
Image Source: Zacks Investment Research
MYR Group stock is trying to land support near its 50-week moving average as it sits at deeply oversold RSI levels. Its selloff, mixed with its strong earnings growth outlook, has it trading almost directly in line with its 10-year median at 21.2X forward earnings and miles below its recent highs of 46.2X.
View the Zacks #1 Rank List
Image: Bigstock
3 AI Power Stocks to Buy Now for Growth, Value and Breakout Potential
Key Takeaways
Investors should consider buying best-in-class AI energy/power stocks in September and holding them for long-term upside.
The three stocks we dive into today—MYR Group, Quanta Services, and Powell Industries—are churning out massive AI-boosted earnings and revenue growth as hyperscalers, Wall Street, and the U.S. government race to expand energy generation and the grid that was in dire need of investment before the energy-hungry AI arms race.
There won’t be an AI-driven economy that the hyperscalers, Wall Street, and the U.S. government are betting on without an all-hands-on-deck expansion of the energy and utilities sectors, since generative AI like ChatGPT uses 10X more energy than a traditional Google search.
The next decade will require more new energy generation than any period in U.S. history as big tech spends trillions of dollars on AI data centers that guzzle as much power as mid-sized cities.
Today we break down three of the best stocks to buy and hold in the broader AI-boosted energy industry that boast impressive fundamentals and are trading ~20% to ~45% below their all-time highs.
Best Buys on Wall Street: AI-Boost Energy and Electricity Infrastructure Stocks
AI spending is fueling Wall Street and real-world economic growth, meaning investors must continue to buy and hold AI stocks.
Yet, buying technology stocks that are surefire long-term AI winners outside of a handful of stocks like Nvidia and Taiwan Semiconductor is no easy task considering how rapidly the technologies and their use cases are changing.
What appears certain is that the AI spending spree is heating up. Despite AI bubble fears, $750 billion in new AI-centric capex spending initiatives were announced in August alone, highlighted by Nvidia’s $500 billion effort alongside Wall Street titans. This money is set to flow into chips, data centers, vital rare earths, and perhaps most critically, energy generation and the grid.
The AI arms race, combined with electrification and the reshoring of critical manufacturing such as semiconductor fabrication, is projected to increase U.S. electricity demand 50% or more by 2050—some reports see 100% growth over the next 25 years.
Quanta Services: Best AI Energy Stock to Buy Now and Hold Forever?
First off, energy infrastructure powerhouse Quanta Services, Inc. (PWR - Free Report) doubled its revenue and its GAAP (and adjusted) earnings from 2021 to 2025.
More importantly in the forward-looking world of Wall Street, PWR’s management said it’s on a “clear path to more than doubling” its adjusted EPS again by 2030 vs. its 2025 levels.
Image Source: Zacks Investment Research
The specialty contractor designs, builds, and maintains transmission lines, substations, distribution networks, generation interconnects, and other critical energy infrastructure across North America.
Quanta closed Q2 with a record backlog of $53.4 billion as it helps physically build critical utility and energy infrastructure. PWR’s upbeat post-Q2 EPS revisions (+17% improvement for 2026 and +15% for 2027) earn Quanta a Zacks Rank #1 (Strong Buy).
PWR is expected to grow its revenue by 38% in 2026 and 15% in 2027 to climb from $28.5 billion in FY25 to $45.3 billion in 2027. Our most recent Zacks estimates call for the electric-grid infrastructure firm to grow its adjusted earnings by 52% this year and another 16% next year, putting it well on its way to doubling its EPS between 2025 and 2030.
Image Source: Zacks Investment Research
The energy infrastructure stock has climbed 45% in 2026 as part of a ~2,400% run in the last decade. This market and industry-crushing run includes PWR’s ~20% fall from its May peaks as investors took profits after a massive rally.
Its average Zacks price target implies ~30% upside from its current price, and PWR found technical support at its 200-day moving average in late July.
Once Quanta breaks out above its 50-day and its pre-May breakout levels, it could be ready to charge back up toward its peaks and beyond. Its strong earnings growth outlook, mixed with its healthy pullback, has PWR trading at a 40% discount to its highs at 36.9X forward 12-month earnings.
Image Source: Zacks Investment Research
PWR is also expanding its free cash flow, and its sturdy balance sheet helped it announce a new $1 billion stock repurchase program in late May.
All in, investors should consider buying Quanta as an AI energy stock ready to capture more of what its management views as a total addressable market of $2.4 trillion through 2030.
Buy Electrical Infrastructure Stock POWL for 85% Upside and AI-Boosted Growth
Powell Industries, Inc. (POWL - Free Report) manufactures custom-engineered equipment and systems that manage, control, and distribute electrical energy.
Put differently, POWL builds the specialized electrical “plumbing,” such as power control room substations, electrical houses, medium-voltage circuit breakers, and much more. Its electrical equipment takes high-voltage power and safely distributes it across power generation facilities, large data centers, and beyond.
Image Source: Zacks Investment Research
POWL doubled its revenue between 2022 and 2025. It also expanded its GAAP earnings by a mind-blowing ~1,200% from $0.38 to $4.95 a share during that same period.
Powell grew its backlog by 69% YoY to $2.4 billion during its third quarter of fiscal 2026. Its growth was highlighted by its previously announced “megadata center order with a value in excess of $400 million,” and two additional megaorders.
Image Source: Zacks Investment Research
The electrical infrastructure firm is projected to expand its EPS by 8% this year and 28% next year on 8% and 22% revenue growth, respectively.
Powell’s free cash flow expansion showcases its thriving business. On top of that, its stellar balance sheet is highlighted by $634 million in cash and short-term investments against near-zero debt and $651 million in total liabilities—vs. $1.4 billion in total assets.
POWL stock has surged ~2,000% in the past five years, including its ~45% drop from its May highs. The stock pulled back after it grew far too overheated. But its long-term outlook shows why investors should remain bullish, especially after its healthy selloff.
Image Source: Zacks Investment Research
Powell offers ~85% upside if it ever returns to its all-time highs, and its average Zacks price target implies 72% upside. It is attempting to find support at its 50-week moving average, while trading at some of its most oversold RSI levels in the past 10 years.
The downturn, mixed with its strong earnings outlook, has it trading nearly in line with its industry and at a ~55% discount to its highs at 26.5X forward earnings.
Best Under-the-Radar AI-Boosted Infrastructure Stocks to Buy Now: MYRG
MYR Group Inc. (MYRG - Free Report) builds, maintains, and repairs high-voltage power lines, substations, and a wide range of other vital electrical infrastructure that keep the grid running and growing.
The electrical construction contractor is riding long-term industry trends across grid hardening and expansion, electrification, nuclear energy and renewable integration, the rapid build-out of power-hungry data centers, and beyond.
Image Source: Zacks Investment Research
The specialty electrical contractor more than doubled its revenue between 2018 and 2023 and roughly tripled its adjusted earnings. MYRG posted strong growth again in 2025 after setbacks in 2024. MYR Group reported a beat-and-raise quarter at the end of July, with its backlog up 20% YoY.
MYRG is projected to grow its adjusted earnings by 61% in 2026 and 13% in 2027 on 22% and 13%, respective sales expansion. Its recent wave of upward earnings revisions land the stock a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The electric construction stock surged ~1,500% over the last 15 years, crushing the Utilities sector and the S&P 500. The stock climbed nearly 60% in the past 12 months vs. the S&P 500’s 17%.
Yet, investors can buy MYRG down ~43% from its highs and around where it was in March. MYRG’s average Zacks price target implies 50% upside, and it would have to climb around 80% to return to its all-time highs.
Image Source: Zacks Investment Research
MYR Group stock is trying to land support near its 50-week moving average as it sits at deeply oversold RSI levels. Its selloff, mixed with its strong earnings growth outlook, has it trading almost directly in line with its 10-year median at 21.2X forward earnings and miles below its recent highs of 46.2X.