Research and Markets reported that the global Infrastructure Sector Market size was estimated at $2.89 trillion in 2025, and is now expected to reach $3.92 trillion by 2030, given that it grows at a CAGR of 6.27% during the forecast period between 2025 and 2030. The COVID-19 pandemic severely impacted national economies and the financial health of governments, businesses, and individuals. Infrastructure saw lower usage rates, which led to shortfalls in financing and maintenance, as financial resources were diverted to urgent healthcare and supply chain needs. The pandemic caused both a demand and supply shock, but the global infrastructure construction output still expanded in 2020.
In a McKinsey and Company report titled “The Infrastructure Moment,” published on September 9, the necessity for a mindset shift in how governments, investors, and industry operators approach infrastructure was highlighted. McKinsey projected that an investment of $106 trillion is needed through 2040 to meet the global demand for infrastructure. Of the seven infrastructure verticals mentioned in the report, Transportation & logistics take the largest share at $36 trillion, followed by energy & power at $23 trillion. The remaining investment goes to digital infrastructure, social infrastructure, waste & water infrastructure, agriculture, and defense. Regionally, the investment needs are uneven, with Asia alone accounting for more than two-thirds, or $70 trillion. The Americas are projected to require ~$16 trillion, and Europe ~$13 trillion.
That being said, we’re here with a list of the 12 best infrastructure stocks to buy with huge upside.
Our Methodology
We sifted through different stock screeners and financial media reports to compile a list of the top infrastructure stocks. We then selected the 12 stocks that had an upside potential of over 20%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q2 2025, which was sourced from Insider Monkey’s database.
Note: All data was sourced on October 17.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12 Best Infrastructure Stocks to Buy with Huge Upside
12. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders: 47
Average Upside Potential as of October 17: 20.88%
Nucor Corporation (NYSE:NUE) is one of the best infrastructure stocks to buy with huge upside. On October 17, Ameresco Inc. (NYSE:AMRC) announced the successful development and commercial operation of a large-scale Battery Energy Storage System/BESS for Nucor in Kingman, Arizona. Nucor is undergoing a major expansion at its Kingman bar mill, which includes installing a new electric arc furnace to boost the facility’s annual production capacity to 600,000 tons.
The expansion led to the need for a solution to support operational reliability and manage energy demand. The BESS, with a capacity of 50MW/200 MWh, is a key component of this expansion. It achieved commercial operation in October 2025.
The BESS is the largest behind-the-meter/BTM project in Arizona and is ranked as the fourth largest BTM installation in the entire US. Construction on the Ameresco-owned battery system, featuring 58 Tesla Megapack 2XL units, began in December 2024.
Nucor Corporation (NYSE:NUE) manufactures and sells steel and steel products. The company operates in 3 segments: Steel Mills, Steel Products, and Raw Materials.
Ameresco Inc. (NYSE:AMRC) provides energy solutions in the US, Canada, and Europe. It operates through North America Regions, US Federal, Renewable Fuels, Europe, and All Other segments.
11. Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD)
Number of Hedge Fund Holders: 22
Average Upside Potential as of October 17: 25.00%
Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) is one of the best infrastructure stocks to buy with huge upside. On October 1, Great Lakes Dredge & Dock Corporation announced the receipt of seven new work awards totaling over $130 million, with the full value totaling ~$134 million. All seven projects were won and awarded in Q3 2025.
These awards expand the company’s 2025 dredging backlog, which reinforces revenue visibility through the rest of the year and well into 2026. The company’s President and CEO, Lasse Petterson, confirmed that the company’s operations remain unaffected by the current government shutdown, as all projects in the backlog are fully funded.
The largest of the awards is a $27.9 million maintenance project for the Mississippi River, Baton Rouge to the Gulf, Head of Passes Project in Louisiana. This federally funded work for the US Army Corps of Engineers/USACE, New Orleans District, involves dredging existing river maintenance material and placing it nearby to contribute to marsh development. Work on this project, which also has an unexercised option for additional work, is expected to start in Q4 2025.
Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) provides dredging services in the US. The company offers capital dredging that consists of port expansion projects, coastal restoration & land reclamations, trench digging for pipelines, tunnels, and cables. It also offers other dredging related to the construction of breakwaters, jetties, canals, and other marine structures.
10. Granite Construction Incorporated (NYSE:GVA)
Number of Hedge Fund Holders: 43
Average Upside Potential as of October 17: 25.08%
Granite Construction Incorporated (NYSE:GVA) is one of the best infrastructure stocks to buy with huge upside. On October 6, Granite announced that its subsidiary, Centennial Aggregate Inc., had completed the acquisition of Cinderlite Trucking Corporation. Cinderlite is a prominent construction material, landscape supply, and transportation company based in Carson City, Nevada.
The acquisition is aligned with Granite’s home market strategy in the active northern Nevada construction landscape and is complementary to Granite’s existing operations in the region.
The acquisition of Cinderlite significantly strengthens Granite’s vertically integrated home market position. The transaction adds substantial material reserves to Granite, including ~100 million tons of aggregate resources and an annual production volume of ~975,000 tons.
Granite Construction Incorporated (NYSE:GVA) operates as an infrastructure contractor in the US. It has two segments: Construction and Materials.
9. American Tower (NYSE:AMT)
Number of Hedge Fund Holders: 70
Average Upside Potential as of October 17: 25.89%
American Tower (NYSE:AMT) is one of the best infrastructure stocks to buy with huge upside. On October 6, CoreSite, which is an American Tower company that offers interconnected data center solutions, celebrated a major construction milestone for its new DE3 data center in Denver. The development expands the company’s existing Denver market footprint, which currently includes two facilities downtown: DE1 at 910 15th Street, which is the recently purchased Denver Gas and Electric Building and is one of the most interconnected buildings in the Rocky Mountain Region, and DE2 at 639 E. 18th Ave.
The DE3 data center is the first purpose-built colocation data center to be constructed in Denver in the last two decades. It will be a 180,000-square-foot facility built to meet the demand for high-density, high-performance compute environments that power AI, cloud, and other mission-critical workloads.
The facility will be linked to the existing DE1 and DE2 data centers via high-count dark fiber. Once the Denver data center campus expansion is completed, it will deliver approximately 600,000 square feet with 60 critical megawatts of power. The DE3 data center is targeted for availability in 2026.
American Tower (NYSE:AMT) is one of the largest global REITs and is an independent owner, operator, and developer of multitenant communications real estate with a portfolio of ~150,000 communications sites and an interconnected footprint of US data center facilities.
8. PG&E Corporation (NYSE:PCG)
Number of Hedge Fund Holders: 77
Average Upside Potential as of October 17: 27.16%
PG&E Corporation (NYSE:PCG) is one of the best infrastructure stocks to buy with huge upside. On October 3, Pacific Gas and Electric Company, which is a subsidiary of PG&E Corporation, announced that it had reached a significant milestone by constructing and energizing 1,000 miles of powerlines underground in high fire risk areas.
This undergrounding effort is identified as the largest ever undertaken by a utility to reduce wildfire risk. In the specific locations where these lines now provide electricity, the undergrounding process effectively eliminates nearly all wildfire risk. The distance of 1,000 miles is greater than the driving distance from the Oregon-California border to the California-Mexico border, which is 932 miles.
Since 2023, the company’s total hardening efforts, which also include installing stronger overhead poles and wires and line removals, have permanently removed 8.4% of wildfire ignition risk from its entire system. PG&E anticipates that by the end of 2026, a total of 1,600 miles of powerlines will be underground, which is expected to contribute to a total system-wide risk reduction of 18%.
PG&E Corporation (NYSE:PCG), through its subsidiary, Pacific Gas and Electric Company, sells and delivers electricity and natural gas to customers in northern and central California, the US.
7. Willdan Group Inc. (NASDAQ:WLDN)
Number of Hedge Fund Holders: 25
Average Upside Potential as of October 17: 27.33%
Willdan Group Inc. (NASDAQ:WLDN) is one of the best infrastructure stocks to buy with huge upside. On October 6, Willdan Group announced that it had been selected by National Grid to deliver energy efficiency services to small businesses in Massachusetts. The new two-year agreement marks Willdan’s entry into National Grid’s Massachusetts market, expanding the company’s footprint across the Northeast.
Under the contract, Willdan will implement a small business direct install program for both urban and suburban counties in Eastern Massachusetts. The program aims to provide meaningful energy efficiency solutions, helping local business owners improve safety and comfort while simultaneously lowering their monthly energy costs.
Mike Bieber, the company’s CEO, noted that the new contract extends the reach of the company’s services and reinforces its commitment to delivering measurable energy savings and supporting the energy transition in Massachusetts.
Willdan Group Inc. (NASDAQ:WLDN), together with its subsidiaries, provides professional, technical, and consulting services primarily in the US. It has two segments: Energy and Engineering & Consulting.
6. Southland Holdings Inc. (NYSE:SLND)
Number of Hedge Fund Holders: 10
Average Upside Potential as of October 17: 29.87%
Southland Holdings Inc. (NYSE:SLND) is one of the best infrastructure stocks to buy with huge upside. On September 30, Southland Holdings announced that it had been awarded two new projects with a combined total value of ~$130 million. The company will include these two projects in its Q3 2025 backlog.
The awarded work consists of two distinct projects secured by different Southland subsidiaries. The first project is a bridge rehabilitation for a private client in the Pacific Northwest, which was awarded through its Transportation segment subsidiary, American Bridge Company.
The second project is a water resource initiative located in the City of Austin, Texas, secured through its Civil segment subsidiary, Oscar Renda Contracting.
Southland Holdings Inc. (NYSE:SLND) engages in the specialty infrastructure construction business in North America. The company operates through two segments: Civil and Transportation.
5. ONEOK Inc. (NYSE:OKE)
Number of Hedge Fund Holders: 44
Average Upside Potential as of October 17: 33.68%
ONEOK Inc. (NYSE:OKE) is one of the best infrastructure stocks to buy with huge upside. On October 9, Barclays analyst Theresa Chen lowered the firm’s price target on Oneok to $78 from $83 and kept an Equal Weight rating on the shares. Barclays believes that the company’s Q3 2025 financial report will be a critical indicator of its progress on synergy targets and earnings growth capabilities.
The company’s price target was also lowered earlier on Septmber 18 by BofA to $100 from $109, with a Buy rating on the shares. This sentiment was announced as a part of the firm’s broader update on its price targets for Integrated, Refining, and Midstream stocks. The firm expected a shift in investor focus for midstream companies after a two-year period during which the industry was incentivized to grow.
ONEOK Inc. (NYSE:OKE) is a midstream service provider of gathering, processing, fractionation, transportation, storage, and marine export services in the US. It operates in 4 segments: Natural Gas Gathering & Processing, Natural Gas Liquids, Natural Gas Pipelines, and Refined Products & Crude.
4. Owens Corning (NYSE:OC)
Number of Hedge Fund Holders: 48
Average Upside Potential as of October 17: 37.06%
Owens Corning (NYSE:OC) is one of the best infrastructure stocks to buy with huge upside. On October 9, Truist lowered the price target on Owens Corning to $135 from $165, while maintaining a Hold rating on the shares. This sentiment was announced as a part of the firm’s broader update on its models to reflect roofing volume weakness in recent months.
Truist stated that the lack of strong storm activity and weaker new construction will drive the downside. Additionally, the firm cited its growing sense that winter months will see inventory reductions in the channel, which will eventually hurt production. The firm also expects weak pricing to occur as the industry readjusts to proper levels to start the 2026 season.
Owens Corning (NYSE:OC) provides residential and commercial building products in the US, Europe, the Asia Pacific, and internationally. It operates through four segments: Roofing, Insulation, Doors, and Composites.
3. KBR Inc. (NYSE:KBR)
Number of Hedge Fund Holders: 51
Average Upside Potential as of October 17: 39.51%
KBR Inc. (NYSE:KBR) is one of the best infrastructure stocks to buy with huge upside. On October 16, KBR announced that it had been awarded a cost-plus-incentive-fee task order from the United States Space Force/USSF. The contract, named the Design Implementation for Collaborative Environment/DICE task order, has a ceiling value of $98.7 million and a performance period spanning 3 years.
The award builds upon KBR’s work under the previously secured Advanced Solutions for Collaborative Engineering and Digital Development/ASCEND2 contract. The primary focus of the DICE task order is to establish a state-of-the-art testing and training environment for the USSF, which will be located in Colorado Springs, Colorado.
To execute this, KBR is authorized to deploy its Integration Accelerator, a groundbreaking collaborative digital engineering ecosystem designed to accelerate capability deployment and enhance decision-making. Furthermore, KBR will utilize the ASCEND2 Indefinite Delivery, Indefinite Quantity/IDIQ contract vehicle to provide analytical and technical decision support.
KBR Inc. (NYSE:KBR) provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. It operates through Government Solutions and Sustainable Technology Solutions segments.
2. Kinetik Holdings Inc. (NYSE:KNTK)
Number of Hedge Fund Holders: 31
Average Upside Potential as of October 17: 45.91%
Kinetik Holdings Inc. (NYSE:KNTK) is one of the best infrastructure stocks to buy with huge upside. On October 15, Goldman Sachs lowered the firm’s price target on Kinetik Holdings to $46 from $47 and kept a Buy rating on the shares. This sentiment came ahead of the company Q3 2025 results, as Goldman Sachs is reducing its Q3 EBITDA estimate to $249 million from $259 million on higher operating expenditure, lower volume growth, and gas price headwinds.
Later on October 17, Scotiabank also lowered the firm’s price target on Kinetik Holdings to $51 from $53, with an Outperform rating on the shares. Scotiabank believes that the company endured a turbulent 2025 in operations and/or corporate level circumstances. Some impacts were beyond the company’s control, while the others were driven by divergence between business performance and consensus expectations.
Kinetik Holdings Inc. (NYSE:KNTK), through its subsidiaries, operates as a midstream company in the Texas Delaware Basin. It has two segments: Midstream Logistics and Pipeline Transportation.
1. Knife River Corporation (NYSE:KNF)
Number of Hedge Fund Holders: 24
Average Upside Potential as of October 17: 49.14%
Knife River Corporation (NYSE:KNF) is one of the best infrastructure stocks to buy with huge upside. On October 8, Wells Fargo initiated coverage of Knife River with an Equal Weight rating on the shares, while setting a $261 price target. Wells Fargo rolled out coverage of the US building materials sector and favored the early-cycle beneficiaries of interest rate cuts. The firm prefers exposure to cement, wallboard and home improvement.
However, Wells Fargo has a cautious view on construction through 2026 and expects a recovery in late 2026 into 2027, although home improvement could recover earlier according to the firm. Earlier on October 1, DA Davidson lowered the price target on Knife River to $95 from $105 and kept a Buy rating on the shares as the firm reduced its 2025-26 estimates to reflect weather-related challenges, including where Strata operates, and the consideration of potential lingering market pressure in Oregon. However, the firm sees the eventual stabilizing of Oregon market trends.
Knife River Corporation (NYSE:KNF), together with its subsidiaries, provides aggregates-led construction materials and contracting services in the US. It operates through Pacific, Northwest, Mountain, Central, and Energy Services segments.
While we acknowledge the potential of KNF to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KNF and that has 100x upside potential, check out our report about this cheapest AI stock.
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