5 Great AI Infrastructure Stocks to Buy on a Dip
The dip in the AI sector has come even as these companies have all reported improving earnings momentum recently.
Recent declines in AI infrastructure stocks present an opportunity for savvy investors to capitalize on long-term growth potential. GE Vernova, Vertiv, ON Semiconductor, Comfort Systems USA, and SPX Technologies are all showing signs of improvement despite recent stock price declines.
GE Vernova's core business in gas power turbines provides long-term, high-margin service revenue for AI data centers, supporting increased electricity demand. The company's backlog has surged past $200 billion, indicating strong future revenue growth. On the other hand, Vertiv's power and cooling solutions are integral to AI data center spending, with management increasing revenue and earnings guidance on every earnings call this year.
ON Semiconductor, an Nvidia partner, develops architecture for next-generation 800V HVDC data centers and has seen a rapid increase in its revenue estimate for the data center end market. Comfort Systems USA benefits from the growth in technology end markets and contracting services in data centers, as customers commit earlier and for larger scopes due to scarce capacity.
Lastly, SPX Technologies supplies cooling towers for data centers, benefiting from increasing scrutiny on data center water reuse mandates. Combined, these companies present a compelling case for investment in the AI infrastructure sector, with strong revenue growth and positive outlooks.
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