The ongoing AI boom has made energy stocks one of the hottest corners of investing. Once-boring utility companies are soaring as tech giants look to feed their ravenous data centers, while three of the top 10 best performing stocks in the S&P 500 this year are wholesale power providers with nuclear businesses. Meanwhile, all this demand for energy is lifting another set of companies: firms that help build and maintain North America’s electrical grids, including our three picks listed farther below.
Consult any energy sector report, and you’ll discover that the country’s grid infrastructure requires a major facelift. This means portfolio managers are keeping a close eye on manufacturers that build essential equipment like transformers and switchgear—or provide services like cooling solutions for the server racks in data centers.
