Investors are advised to consider three AI-focused energy stocks—Quanta Services (PWR), Powell Industries (POWL), and MYR Group (MYRG)—for long-term growth as September approaches. These companies are positioned to benefit from a projected 50% increase in U.S. electricity demand by 2050, driven by the expanding energy requirements of AI technologies, which consume significantly more power than traditional applications.
Quanta Services reported a record backlog of $53.4 billion and is expected to grow its revenue from $28.5 billion in FY25 to $45.3 billion by 2027. Powell Industries has seen its revenue double between 2022 and 2025, with projections of ~1,200% growth in earnings. MYR Group has more than doubled its revenue between 2018 and 2023, aiming for 61% growth in earnings in 2026. Each company is currently valued at approximately 20% to 45% below their all-time highs, presenting appealing buying opportunities.
In August, $750 billion in new AI-capital expenditures were announced, underscoring the urgency for investment in energy generation and infrastructure. The rising demand emphasizes an essential shift in the energy sector, essential for sustaining the anticipated AI-driven economy.
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