In this article, we will discuss the 7 Best Electrical Equipment Stocks to Buy.
The infrastructure powering the global economy’s next chapter, from grid modernization to industrial automation, runs through electrical equipment. Electrical equipment stocks are drawing sustained capital from utilities, industrial conglomerates, and infrastructure-focused funds, positioning ahead of what could be the largest wave of grid investment in decades. Unlike speculative growth trades, this is not a story of unproven technology. It’s a foundational industrial theme where decades-old manufacturing expertise is being reshaped by electrification, automation, and renewable integration, rewarding companies that can scale production to meet surging demand.
Data from Market Research Future estimated the electrical equipment and services market at USD 1,849.74 billion in 2024, projected to grow to USD 2,803.33 billion by 2035, exhibiting a CAGR of 3.85% during the forecast period, a steadier, more mature growth curve reflecting the sector’s massive installed base. In another analysis by Fortune Business Insights, the global electrical equipment market size is projected to grow from $1,822.88 billion in 2026 to $4,151.57 billion by 2034, at a CAGR of 10.80% during the forecast period, a considerably steeper trajectory driven by accelerating demand for smart grid technology and industrial automation. Industry coverage points to escalating momentum from grid modernization mandates and renewable energy buildouts as utilities and governments race to secure reliable, resilient power infrastructure.
Electrical equipment has necessity and inevitability, a foundational requirement for every industrial, commercial, and residential system that no other category can substitute for. For investors seeking durable exposure to the physical backbone of electrification and industrial modernization, electrical equipment stocks may be one of the more dependable long-term themes in the market today.
With this context in mind, here are the best electrical equipment stocks to buy.
Our Methodology
We used stock screeners to identify the electrical equipment stocks with a short percentage of shares outstanding, less than 4%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in descending order of their short percentage of shares outstanding.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
7 Best Electrical Equipment Stocks to Buy
7. GE Vernova Inc. (NYSE:GEV)
Short Percentage of Shares Outstanding: 3.92%
On June 16, Bernstein initiated coverage of GE Vernova Inc. (NYSE:GEV) with an Outperform rating and a $1,206 price target. The firm believes the company is uniquely positioned to benefit from powerful global trends, including energy security, electrification, decarbonization, and economic development. Bernstein expects GE Vernova to evolve into a comprehensive provider of power generation, grid infrastructure, and electrification solutions, enabling it to play a central role in meeting growing worldwide electricity demand. The analyst noted that increasing investment in power infrastructure should provide a significant long-term growth runway for the company.
Earlier, on June 11, Jefferies lowered its price target on GE Vernova Inc. (NYSE:GEV) to $1,210 from $1,350 while maintaining a Buy rating. Although the firm acknowledged investor concerns surrounding behind-the-meter power solutions and their potential impact on traditional grid investments, it argued that these concerns are overstated relative to available market data. Jefferies expects the company’s second-quarter order activity and commentary regarding future demand to reinforce confidence in the long-term strength of the gas turbine market. The firm believes GE Vernova remains well-positioned to maintain its market leadership through the next decade despite recent share price volatility.
GE Vernova Inc. (NYSE:GEV) is headquartered in Cambridge, Massachusetts, and became an independent publicly traded company in 2024 following its separation from General Electric. The company operates across the Power, Wind, and Electrification segments, providing equipment and services that generate, transfer, convert, and store electricity for utilities, industrial customers, and infrastructure projects around the world.
GE Vernova’s leadership across critical energy markets, strong exposure to electrification and grid modernization trends, and continued analyst confidence support an attractive long-term investment outlook as global power demand accelerates.
6. Vicor Corporation (NASDAQ:VICR)
Short Percentage of Shares Outstanding: 3.26%
On June 22, Craig-Hallum raised its price target on Vicor Corporation (NASDAQ:VICR) to $450 from $400 while maintaining a Buy rating on the shares. The firm cited a highly encouraging annual shareholder meeting, which reinforced its confidence in the company’s long-term growth prospects. According to Craig-Hallum, the opportunity ahead for Vicor extends beyond even its recently increased financial targets, reflecting growing optimism regarding demand for the company’s advanced power solutions. The analyst believes Vicor remains well-positioned to capitalize on the increasing power requirements of next-generation computing systems, artificial intelligence infrastructure, and other high-performance electronic applications.
Earlier, on May 26, Chief Executive Officer Dr. Patrizio Vinciarelli commented on industry developments, noting that enforcement of intellectual property rights is strengthening through exclusion orders that prevent the importation of systems incorporating infringing technologies. He emphasized that Vicor Corporation (NASDAQ:VICR)’s licensing framework allows original equipment manufacturers and hyperscale customers to access the company’s patented power innovations through multiple supply sources while preserving the value of its intellectual property portfolio. Management believes this approach enhances supply chain flexibility for customers while reinforcing Vicor’s competitive advantages in advanced power conversion technologies.
Founded in 1981 and headquartered in Andover, Massachusetts, Vicor Corporation (NASDAQ:VICR) designs and manufactures high-density modular power components and systems that efficiently convert, regulate, and manage electricity. Its patented technologies are used across data centers, aerospace, defense, industrial, and automotive applications, where reliable and efficient power delivery is critical to system performance.
Vicor’s strong intellectual property position, growing exposure to AI-driven infrastructure spending, and favorable analyst outlook support its potential to benefit from rising demand for advanced power management solutions across multiple high-growth industries.
While we acknowledge the potential of VICR as an investment, 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 VICR and that has 100x upside potential, check out our report about the cheapest AI stock.
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