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Welcome to Episode #465 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to check in on the AI infrastructure stocks after the recent pullback in the AI stocks.
Are they deals?
NVIDIA has now reported its third quarter earnings, and it beat and raised again. However, Wall Street is still worried about an AI bubble. Investors and traders have been selling the AI stocks over the last month.
Yet, many of the AI infrastructure companies have reported record quarters and have raised 2025 guidance.
Here are three AI infrastructure companies whose shares have pulled back.
Sterling is an engineering firm with three segments: E-Infrastructure, Transportation and Building Solutions. Sterling had record third quarter results and raised 2025 guidance.
On Nov 12, 2025, Sterling announced a new $400 million share buyback program. Only $81 million remained on the last program. The stock repurchases are to be made over 24 months.
Sterling is expected to grow earnings by 56.9% this year. Shares have fallen 14.8% over the last month. It now trades with a forward price-to-earnings (P/E) ratio of 34.9.
Is this a buying opportunity in Sterling Infrastructure?
Eaton Corp. is a power management company with a market cap of $134.3 billion. In the third quarter, the Electrical Sector and Electrical Americas data center orders were each up approximately 70%.
Earnings are expected to rise 11.9% this year. Shares of Eaton are down 13.1% over the last month. It now trades with a forward P/E of 28.6.
Eaton reaffirmed its 2025 outlook.
Should investors go shopping for Eaton on this pullback?
Vertiv is a services company that provides solutions in power, cooling and IT infrastructure for data centers, communication networks and commercial and industrial facilities. It has a market cap of $65.3 billion.
In the third quarter of 2025, organic orders were up 60%. Vertiv raised its 2025 guidance.
Shares of Vertiv have fallen 9.2% over the last month. It’s forward P/E has fallen to 41.5.
Vertiv is a Zacks Rank #1 (Strong Buy).
Is Vertiv a deal on this pullback?
What Else Should You Know About AI Infrastructure Stocks?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of STRL and VRT in her own personal portfolio and in Zacks Value Investor portfolio.]
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3 AI Infrastructure Stocks on Sale Right Now
Key Takeaways
Welcome to Episode #465 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to check in on the AI infrastructure stocks after the recent pullback in the AI stocks.
Are they deals?
NVIDIA has now reported its third quarter earnings, and it beat and raised again. However, Wall Street is still worried about an AI bubble. Investors and traders have been selling the AI stocks over the last month.
Yet, many of the AI infrastructure companies have reported record quarters and have raised 2025 guidance.
Here are three AI infrastructure companies whose shares have pulled back.
3 AI Infrastructure Stocks on Sale Right Now
1. Sterling Infrastructure, Inc. (STRL - Free Report)
Sterling is an engineering firm with three segments: E-Infrastructure, Transportation and Building Solutions. Sterling had record third quarter results and raised 2025 guidance.
On Nov 12, 2025, Sterling announced a new $400 million share buyback program. Only $81 million remained on the last program. The stock repurchases are to be made over 24 months.
Sterling is expected to grow earnings by 56.9% this year. Shares have fallen 14.8% over the last month. It now trades with a forward price-to-earnings (P/E) ratio of 34.9.
Is this a buying opportunity in Sterling Infrastructure?
2. Eaton Corp. (ETN - Free Report)
Eaton Corp. is a power management company with a market cap of $134.3 billion. In the third quarter, the Electrical Sector and Electrical Americas data center orders were each up approximately 70%.
Earnings are expected to rise 11.9% this year. Shares of Eaton are down 13.1% over the last month. It now trades with a forward P/E of 28.6.
Eaton reaffirmed its 2025 outlook.
Should investors go shopping for Eaton on this pullback?
3. Vertiv Holdings Co. (VRT - Free Report)
Vertiv is a services company that provides solutions in power, cooling and IT infrastructure for data centers, communication networks and commercial and industrial facilities. It has a market cap of $65.3 billion.
In the third quarter of 2025, organic orders were up 60%. Vertiv raised its 2025 guidance.
Shares of Vertiv have fallen 9.2% over the last month. It’s forward P/E has fallen to 41.5.
Vertiv is a Zacks Rank #1 (Strong Buy).
Is Vertiv a deal on this pullback?
What Else Should You Know About AI Infrastructure Stocks?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of STRL and VRT in her own personal portfolio and in Zacks Value Investor portfolio.]