‘AI Plays in Disguise’ – Analyst Highlights Quanta Services (PWR) as a Promising AI Power Stock

Chad Dillard, analyst at Bernstein, recently highlighted Quanta Services (NYSE:PWR) as a promising AI power stock during a CNBC program. He described the company as an 800-pound gorilla in high-voltage transmission lines. Dillard's comments were made in response to a question about AI plays beyond the major names most people know.

He emphasized the importance of addressing bottlenecks such as power and labor in the energy sector. Dillard pointed out that Quanta Services can benefit from the growing demand for AI-related power, as it is one of the few companies capable of building and upgrading grid infrastructure. The company's recent revenue growth of about 40% year-over-year and increased guidance for the current fiscal year are positive indicators for investors.

Quanta Services has also made several strategic acquisitions, including Phalcon, Enerfab, Percheron, and PSD, which are expected to add roughly 3 to 4% to its revenue in 2026. These deals will provide the company with more control over bottlenecks that slow down projects. However, the valuation of Quanta Services is currently high, with a forward price-to-earnings ratio of around 41.6, roughly double the sector median.

The company's forward EV/EBITDA ratio is also significantly higher than its sector median. While Quanta Services presents an interesting investment opportunity, other AI stocks may offer greater potential for higher returns within a shorter time frame.