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Forgent Power (FPS) Soars 7.4% on Market Debut as Firm Rides AI Boom

We recently published 10 Stocks Withstanding Market Turbulence. Forgent Power Solutions Inc. (NYSE:FPS) was one of the best performers on Thursday.

Forgent Power jumped by 7.41 percent in its first day as a publicly listed company as investors snapped up shares amid an overall optimism for the artificial intelligence sector.

During the session, the stock opened at $26, or 3.7 percent lower than its initial public offering (IPO) price of $27 before gaining ground to finish the day higher at $29 apiece.

Pixabay/Public Domain

The company successfully raised $1.5 billion in fresh funds from the sale of 56 million shares, consisting of more than 39.4 million from its parent firm, controlled by Neos Partners LP, and another 16.5 million offered by the newly listed firm itself.

In addition, the selling stockholders and Forgent Power Solutions Inc. (NYSE:FPS) granted its underwriters a 30-day option to purchase an additional 8.4 million shares at the IPO price.

Forgent Power Solutions Inc. (NYSE:FPS) said that it will not receive any proceeds from the share sale from its selling stockholders, while the proceeds it will receive will be used to redeem interests in an operating subsidiary held by certain existing equity owners controlled by Neos Partners LP.

The operating subsidiary will bear or reimburse the company for all of the expenses of the offering.

Forgent Power Solutions Inc. (NYSE:FPS) is engaged in the design and production of electrical distribution equipment for data centers, power grid and energy-intensive industrial facilities. It specializes in manufacturing custom products that are “engineered-to-order” for technically demanding applications.

While we acknowledge the risk and potential of FPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FPS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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