Beyond the Chips: Why This Power Play Could Ride the AI Data Center Boom Higher

Artificial intelligence continues to take off, and hyperscalers are spending boatloads of money over the next several years to build out data centers that house these powerful algorithms. According to Goldman Sachs, hyperscalers such as Microsoft, Alphabet, Amazon, and Meta Platforms will spend $500 billion on capital expenditures this year.This massive amount of spending must go somewhere, and one theme that can be intriguing for investors is investing in pick-and-shovel stocks that stand to profit from the data center buildout, which is creating robust demand for their products or services. One industrial stock to pay close attention to is Quanta Services (NYSE: PWR). Here's why.Quanta provides infrastructure solutions for power and energy and is a key partner for utility, renewable energy, and technology companies worldwide. The company operates in two reporting segments. Its electric infrastructure solutions segment is its primary revenue generator, and it focuses on modernizing the grid, constructing substations, and high-voltage transmission. In its other segment, it provides underground utility and infrastructure solutions for gas, water, and specialty pipelines.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool