While investors have been fixated on semiconductors and the Magnificent Seven, a quiet group of stocks has been doing something those names haven’t: beating earnings, attracting institutional money, and pulling back enough to provide a new entry point.
The company NVIDIA NASDAQ: NVDA while other Mag 7s rose less than 1% for the year. Meanwhile, the companies that actually build the infrastructure that makes AI work—power plants, data centers, and power grid expansion—have been putting up real numbers. Marc Chaikin of Chaikin Analytics says this is where investors should be looking right now, and he has three names to make the case.
Where AI Money Really Goes
The chip story has its moment. NVIDIA, Advanced Micro Devices NASDAQ: AMDand Micron Technology NASDAQ: MU– those messages were true and well written. Then the hardware layer caught on: Dell Technologies NYSE: DELL and Hewlett Packard Enterprise NYSE: HPE both earnings posted a blowout as demand for data center servers increased. Those stocks doubled in a matter of weeks.
Chaikin’s view is that the biggest advantages of chips and servers have already been realized. The next layer of commerce is the infrastructure that supports and powers it all—and that story is still in its infancy.
Building a data center requires two things above all else: building technology and electricity. Three of the stocks on his list stay that way.
Argan: Small Cap, Special Game
Argan Today
- 52 week interval
- $193.82
▼
$779.00
- Dividend Yield
- 0.33%
- The P/E ratio
- 53.32
- Target Value
- $470.40
Argan, Inc. NYSE: AGX is a construction and engineering firm specializing in the development of electrical equipment—an area that puts it squarely on the path to data center expansion.
With an estimated $1 billion in revenue, it’s the smallest name on the list, but Chaikin says that’s part of the appeal. Retail investors haven’t caught on yet, which means there could be another buying wave yet to come.
The stock rose on its most recent earnings report before pulling back. Chaikin sees that pullback as a setup—strong fundamentals, a multi-year runway, and upside value.
MasTec: Mid-Cap with the Trifecta of Bullish Signals
MasTec, Inc. NYSE: MTZ operates on a very large scale—about $15 billion—providing infrastructure solutions for all power, pipeline, and telecommunications projects. It’s not a household name in AI discussions, but its recent gains tell a different story.
MasTec Today
- 52 week interval
- $159.23
▼
$441.43
- The P/E ratio
- 61.44
- Target Value
- $459.28
Against an average of 98 cents per share, MasTec reported earnings of $1.39, beating 41 cents and raising full-year guidance.
Chaikin points to what he calls the trifecta: a consistent pattern of positive earnings surprises in each of the last six quarters, analysts raising their ratings in response, and subsequent ratings upgrades.
That combination—the incredible salaries of reviewed food price analysts—is exactly what his Power Gauge ranking system is designed to target. MasTec has it.
The stock is also down about 20% in the past month, which Chaikin sees as another opportunity to buy the dip instead of chasing the spike.
Quanta Services: The Biggest Play with the Longest Route
The company Quanta Services, Inc. NYSE: PWR the name of the pin in the list. With about $30 billion in revenue and a $100 billion market cap, it’s a much bigger company than the first two, and Chaikin says it may have the longest cycle.
Quanta Services Today
Quanta Services
- 52 week interval
- $349.06
▼
$788.75
- Dividend Yield
- 0.07%
- The P/E ratio
- 91.61
- Target Value
- $733.87
Quanta does not build data centers. Increase the capacity of the electrical grid that data centers depend on. That distinction is important, because the issue of grid optimization goes beyond AI. The US electricity infrastructure is aging, vulnerable to extreme weather, and increasingly inadequate for a growing economy.
Quanta has been doing this work for decades and will continue to do so no matter what happens with AI spending cycles.
The track record of earnings reflects that strength. Quanta has posted positive earnings surprises in 18 of the past 20 quarters.
Most recently, it beat estimates by 35%, reporting $2.68 against the consensus of $2.04. The stock rose 15% on the report, and has since pulled back, giving it a nice discount from its all-time high.
Pattern Retail Investors Remain Absent
The general thread is straightforward: strong earnings, institutional ownership, and the recent downturn that Chaikin reads as buying opportunities rather than warning signs. These are not guessing games. Companies with actual revenue, actual contracts, and construction exposure expected to continue for another three to five years.
The retail investor hasn’t covered names like these yet. That’s not a reason to ignore them—it may be the very reason to pay attention.
Before you consider Quanta Services, you’ll want to hear this.
MarketBeat tracks Wall Street’s top and most effective research analysts and the stocks they recommend to their clients every day. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Quanta Services wasn’t on the list.
Although Quanta Services currently has an Average Buy rating among analysts, top analysts believe these five stocks are the best.
View Five Stocks Here
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