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Shoals Technologies Group, Inc. (SHLS) Partners with ON.energy for AI Data Center Opportunities Backed by Record Backlog

Shoals Technologies Group, Inc. (NASDAQ:SHLS) is one of the best solar stocks to buy now. On February 26, Shoals Technologies Group, Inc. (NASDAQ:SHLS) announced a strategic collaboration with ON.energy for the deployment of multiple gigawatts of critical power systems into the AI data center market.

The two are joining forces at a time when AI and cloud workloads are increasingly accelerating data center growth and raising the bar for power reliability. Shoals is well-positioned to support growth by scaling its production capacity through an expansion into a 638,000-square-foot manufacturing campus in Portland.

“As AI and cloud computing drive unprecedented growth in energy demand, data centers are under pressure to secure long-term, reliable power, rapidly and at scale,” Brandon Moss, CEO of Shoals, stated.

The push for opportunities in the AI and data center market comes on the heels of an exceptional 2025, during which the company achieved a record backlog and awarded orders totaling $747.6 million. The company achieved a 39% increase in fourth quarter revenue to $148.3 million, driven by an increase in sales volumes from higher demand for products to meet the utility scale in solar projects. Gross profit in the quarter increased to $46.9 million. Net income in the quarter increased to $8.1 million from $7.8 million the same quarter.

Full-year revenue was up 19% to $475.3 million, while net income increased to $33.6 million from $24.1 million in 2024.

Shoals Technologies Group (NASDAQ:SHLS) is a leading provider of electrical balance-of-system solutions for solar energy projects, specializing in components such as cable assemblies, combiners, and disconnects that connect solar panels to the grid. Their products increase installation efficiency and reliability for utility-scale solar and battery storage projects.

While we acknowledge the potential of SHLS 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 SHLS and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 10 Best Blue Chip Stocks to Buy for the Long Term.

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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:

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