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Jim Cramer on Quanta Services: “It’s Been Worth Owning”

Quanta Services, Inc. (NYSE:PWR) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer called the company an “obvious winner when you want to build out the electric grid,” as he stated:

I’m going to go down, literally go down the S&P’s top gainers today. I’m doing a little bit of order that changes just so we can get the narrative right, but let’s see if they’re representative of anything other than the data center, even if they’re involved in it. So let’s start with Quanta Services, PWR. This stock soared nearly 16% today. That’s a big gain. It’s an installer of power lines and infrastructures of all kinds. Quanta’s been a decent company for a long time. It’s been worth owning, but it’s been roaring because it’s the obvious winner when you want to build out the electric grid.

Management explains this very clearly right at the beginning of this incredibly stunning positive conference call they had today, “Utilities are being asked to double in size. Technology customers are demanding speed at scale they haven’t dealt with before.” See, this is a whole new way our country’s doing business. A rally that includes Quanta tells you that the data centers about a lot more than just the semiconductors and disk drives. Data centers are like giant mouths that must be fed with constant activity and never-ending electricity.

We know there are many ways for the utilities to produce more energy, the most frequent being converting natural gas to a GE turbine that’s connected to the grid. Quanta builds that. They can also build the other end where the grids connect to the data center. Quanta does this with American labor.

A stock market data. Photo by AlphaTradeZone on Pexels

Quanta Services, Inc. (NYSE:PWR) provides engineering, construction, and maintenance for energy and communication systems, including electrical grids, renewable power plants, and natural gas pipelines.

While we acknowledge the risk and potential of PWR 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 PWR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

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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.

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  • 175 Teslas
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  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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