Top 3 AI Data Center Stocks to Buy Now | Infrastructure Power Cooling

When we think of AI, we tend to picture it as software in the cloud. But every answer these models spit out has to be run somewhere in the real physical world. Of course, I'm talking about all those giant data centers that demand enormous power supplies and generate exorbitant amounts of heat. Right now, the money being spent to build the new data centers is like off the charts, right? Beyond the servers and beyond the leading edge semiconductor chips is a wide array of service providers enjoying spectacular growth. We are talking about everything needed to build a data center like concrete, steel, energy supply, cooling and more. These guys win no matter whether it's Nvidia or AMD chips and the servers. And these guys win whether you tap into chat GBT, Gemini or Claude to get your answers. So today we are going to focus on three stocks that are greatly benefiting from the massive AI data center buildout. And yes, I saved the best one for last. So keep watching all the way till the end. So let's start with the allimportant cooling layer. given the enormous amount of heat generated from all the servers working 24/7 in these data centers. Now, the company I like in that space is SPX technologies with the symbol of SPX. Before we get into that stock, a quick introduction. My name is Steve Wrightmeister, but everyone calls me Righty. Now, I'm a partner at Wall Streetzen.com, where our quant rating system pinpoints stocks with the highest likelihood to beat the market. And if you believe stock breakdowns like this are useful to you, then do me a quick favor and tap that like button. It tells me to record more videos like this in the future. Let's get back to the bullc case for SPX. Because when you pack a building full of the most powerful AI chips on the planet, you generate an unbelievable amount of heat. This isn't a situation where you just install a few more oscillating fans, right? You need serious industrial cooling like cooling towers, fluid coolers, the heavy equipment that pulls heat out of data center before it fries a fortune's worth in servers and hardware. That is exactly what ASPX builds through its leading edge brand called Marley. And this is not some sleepy side business anymore. Management keeps raising how much the data center cooling capacity they can ship because the orders are coming in faster. They can build them out. And here is the very appealing uh investment setup. Even as demand for gear has gone through the roof, right? The stock has actually pulled back about 25% from the all-time highs, giving us a great entry point. So you have a company right in the middle of the AI boom leading to 10 straight earnings beats suddenly on fireale. And that's a good start to the conversation and here comes the rest. Wall Street is extremely bullish with all seven covering analysts in the buy or strong by camp. Even more telling than those recommendations is the excitement shown in the hearty price targets with the average analyst calling for nearly 50% upside in shares in the coming year. One of those analysts is Jamie Cook of True Securities. Now he ranks in the top 4% of all analysts we track based upon his actual stock picking track record. He has the street hike target uh calling for 70% more gains for these shares in the year ahead. Yes, most analyst recommendations are kind of a dime a dozen, but again Jamie Cook is in the top 4% of his peers given truly extraordinary stock picking prowess. So it pays to pay attention to what he is saying about these shares. Now let me show you what our center rings quant says about S&P. Now remember our model scores every stock on 115 different factors. We're talking about everything from growth to value to momentum and a whole lot more. Then it boils it down into an intuitive letter grade of A through F. Indeed, the higher the grade, the higher the expected returns for those shares. S&P earns a respectable overall Zen rating of B. This is a buy recommendation, and it's good to know that our B-rated uh picks as a group have nearly double the returns of the S&P 500 going back the past two decades. This rating comes from scoring in the top 10% of all stocks based upon that full 115 factory view. Now, if you want to see where a stock really shines brightest, the Zen rings also let you dig deeper with seven underlying component grades. Now, let's take a look at those uh top grades for S&P starting with growth, which is in the top 19% of stocks analyzed. Right? This is not just about earnings growth, but revenue, cash flow, uh IBIDA, and more. Then we have sentiment in the top 14% of all stocks, which tells you the smart money crowd is already leaning into these shares. Financial strength is equally strong, also in the top 14% of all stocks. And the standout grade is for the AI factor which scores in the top 11% of all stocks. Now let's be clear that is not about how much artificial intelligence the company's involved with. Rather it's our usage of AI to detect patterns in the data to point to future share price outperformance. Or to put it even more simply it is a great timeliness indicator. The one yellow flag worth pointing out with the company is that they have greatly increased spending to add more capacity which is squeezing profit margins in the short run. But that sets them up for a much stronger profits in the years ahead. Again, we are talking about a stock smack dab in the middle of the AI boom enjoying robust growth now and set up for even more growth down the road. Wall Street is on board and so is the Zenra quant model. all that and we get to buy shares now after a 25% discount. That is a strong start to our stock list today, but things get even more exciting from here. Now, before we continue, I want to personally invite you to my next live training session this coming Monday. The focus is on uh the current market outlook and my favorite stocks to buy. Indeed, these live sessions are totally free, but you do need to register and you can do that now to join me this coming Monday. Just go to wall streetzen.com/live. We just talked about cooling, but that is just one piece of the AI puzzle. Let's remember that the modern AI data center is basically a giant power- hungry electrical system. Something has to move all that power through the building safely, protected and manage the heat right at the rack level. This is where our next stock comes in with Nent electric with a symbol of NVT. Now, they take care of the electrical connection and protection gear, the uh power distribution and the liquid cooling hardware that sits inside the Zeta Center facilities. All these AI chips are getting denser. They run hotter and pull more power. As a result, simple wiring and a few more fans just isn't keeping up with things anymore. Every new rack pushes more spend towards exactly the gear Invent makes. So, as the biggest names in AI keep spending, and they are spending a lot, a big slice of that spend flows straight to Invent. Now, especially uh since Nvidia has named them as one of their preferred partners. This leads to a strong growth story. Not just recently, but going back the past 5 years, they've enjoyed 20% a year revenue growth, and that has translated into even more robust growth on the earnings bottom line. We're talking about 70% a year, five times faster than industry average. Now, indeed, other investors have noticed with shares on the rise, what's what AI stock isn't these days. But let's talk about why shares should continue to outperform as we move forward. Now, before I dig into the rest of the bullcase for Invent, I do have a quick ask for you, and that's to ask you to hit that subscribe button and ring that notification bell. These actions are the best ways to ensure you don't miss any of my future stock picking videos. As we get back to Invent, we find that some of Wall Street's best and brightest are firmly on board these shares. Now, once again, all covering analysts are issuing either a buy or a strong buy recommendations. Not a single sell or even a hold in the group. These analysts are also issuing fair value targets pointing to ample share price uh gains in the year ahead. Now the Zen ratings echoes this bold case for these shares. In this case, we are stepping up to an elite a grade from the Zen range. These top rated stocks have nearly tripled the S&P 500 going back the past 20 plus years. That grade comes from scoring the top 5% of all stocks pointing to a truly stellar fundamental profile. The component grades we talked about earlier help spell out the unique strengths of this stock. That starts with sentiment in the top 15% of all stocks. Again, that's our smart money indicator. Growth scores in the top 12% which foreshadows more growth and more earnings beats ahead. Then we have a top 10% showing for financial strength. Env is not a hidden gem and shares of RA made a nice run over the past couple years, but their growth prospects remain strong. That is why both Wall Street analysts and the Zen rings vital are pounding the table on the stock. Now you add it together and you can appreciate why inven outperform in the months and years ahead. Okay, now we've talked about the power and the cooling. Now let's look at the bigger picture. Somebody has to physically build the guts of the AI data center itself. Indeed, that special skill is in high demand and thus I truly did save the best stock for last. Now before we get to that stock, just one quick thing. If you want to stay one step ahead of the pack, then join me live every Monday. That's when I share my updated market outlook and trading plan to outperform. It's also going to unveil my trade of the week based upon our proven Zen rings quant model in my greater than 40 years of investing experience. Now, it's a free event, but you do need to register. Just go to wall streetzen.com/live or you'll find a link down in the description below or scan the QR code that's coming up on your screen. Even if you can't join live this Monday, you should still sign up. That's because we send a replay to all registrants so you can watch when it's more convenient. Now, just pause the video for a moment to sign up. I'll be patient and wait for you and I look forward to seeing you there on Monday. Now we get to the third and final stock is somebody actually has to build the data center facilities. Then that brings us to the uniquely bullish case for IEES holdings, the symbol of IEC. I'm going to steal a little thunder from further into my telling of the IEES story. And that is to tell you it is the number one ranked stock out of 43 attractive companies in its industry according to Zen Ring's model. And yet amazingly almost no one on Wall Street is talking about them. That tells me this is a hidden gem opportunity. Now, taking it from the top, IEES is a specialty contractor that encompasses the uh crew of engineers and electricians that actually show up on the site. This is the crew that builds the electrical guts of a data center from the ground up. They design the systems. They run the wire. They install the gear and make sure the whole thing powers up correctly. This is the ultimate picks and shovels play for the AI gold rush. In fact, it just got a lot more interesting because IEES just announced a deal to buy a structural steel and construction business. This type of vertical integration means they are grabbing a bigger piece of every data center project. Indeed, is more appealing to work with less vendors on any project. This is a very smart move on their part. The growth story for IEES comes through most clearly through the lens of their most recent earnings report. Not only did earnings blow past three expectations, but more importantly, it point to robust 70% year-over-year earnings growth. And here's where the investment opportunity gets the most interesting. Right now, only one Wall Street analyst is actually covering the stock. In my book, that's good news because with robust growth like this, more analysts will add coverage further down the line. And each new buy recommendation will act as a catalyst to push shares higher, all to the benefit of early movers into the shares, which might be you and me. When Wall Street is asleep at the wheel, that is when our Zen range quant becomes all the more valuable. That's because we can still do that same deep dive analysis of 115 fundamental, technical, and AI factors to find the stocks most likely to outperform. And indeed, IEES scores that elite A rating. And as mentioned earlier, it's also the number one rated stock in the entire industry, topping a field of 43 impressive companies. The top rated stock in a top rated industry is a great start to any investing conversation. Then we can layer on top the seven component grades to help spell out the unique strengths of this company. We'll kick that off with momentum, which scores in the top 21% of all stocks analyzed. Uh then we have growth, even better in the top 13%. That bodess well for more growth and more earning speeds ahead. Sentiment steps all the way up to the top 2%. Again, that's our smart money indicator. And the standout grade is for financials in the top 1% of all stocks. And let me tell you, that is a tough feat for a capital intensive business like theirs. Thus, all the more impressive to to be scoring this high. Now the one thing I should mention is that shares are not truly cheap after an impressive run uh over the last couple years. But here again we are 4 years into a bull market. So a growth story like this is not going to go unnoticed by investors. This is a case of buy high and sell higher especially if their recent vertical integration pays off with even more growth ahead. Gladly the Zen ring shines a light on a truly strong fundamental profile which greatly increases the odds the stock continues to outperform the market as we move forward. That is why IEES closes out our list of three AI data center stocks today. So there is your physical AI buildout top to bottom. The companies that are providing the power, the cooling, and the one that's building it all from the ground up. Three different layers of one enormous AI growth trend that is still showing no signs of slowing down. And here is the thing about a boom like this. It doesn't wait around for anyone. So if you appreciate the opportunity, then best to take action sooner rather than later. Thus, it's a good time to remind you that the Zen ratings are updated daily on wall streetzen.com. So, it's a very good habit to check those latest ratings on our quote pages before making any buy, hold, sell decisions. Be sure to bookmark wall streetzen.com for all your future stock research needs. Now, I want to hear from you. Which of these three stocks is your favorite and why? Or is there another uh AI build on you think I should cover in any of my future videos? Drop it all in the comment section below and let's talk it out as an investment community. And if you want to explore another great investing opportunity, then I suggest checking out the video that's popping up your screen right now. In that one, we share four AI robotic stocks that you should be on your investing radar starting right now.