Power Solutions (PSIX) International Set for Valuation Growth on Data Center Demand and Infrastructure Shifts

Power Solutions International Inc. (NASDAQ:PSIX) is one of the best NASDAQ stocks to buy in 2026. On December 5, Freedom Capital initiated coverage of Power Solutions with a Buy rating and an $87 price target. The firm believes that the company is positioned to benefit from two significant market shifts: the skyrocketing demand for data center power systems and the extensive, long-term updates being made to US infrastructure. The company is capable of creating a reliable strategy for valuation growth.

Earlier on December 1, Jefferies initiated coverage of Power Solutions with a Buy rating and a $101.51 price target. The firm anticipates that AI-related spending will remain elevated for an extended period and highlighted Power Solutions as a vital contributor to the diesel generator supply chain, especially as international competitors face capacity constraints. Consequently, Jefferies believes that the stock is positioned for a significant valuation re-rating.

Power Solutions (PSIX) International Set for Valuation Growth on Data Center Demand and Infrastructure Shifts

In Q3 2025, Power Solutions International Inc. (NASDAQ:PSIX) achieved its highest sales in history, reaching $203.8 million, which was a 62% increase over Q3 2024. This growth translated into a net income of $27.6 million, which was up 59%, and a diluted EPS of $1.20, representing a $0.45 increase over the previous year’s $0.75. The surge in revenue was fueled by an $85.3 million increase in the power systems end market, particularly within the data center and oil and gas sectors.

Power Solutions International Inc. (NASDAQ:PSIX) designs, engineers, manufactures, markets, and sells engines and power systems in the US, North America, the Pacific Rim, Europe, and internationally.

While we acknowledge the potential of PSIX 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 PSIX and that has 100x 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.