1 Hot Industrial Stock Riding the AI Infrastructure Boom
This is an ideal picks-and-shovels stock to play the ongoing interest in all things artificial intelligence.
Overview
Mechanical and electrical contracting services company Comfort Systems USA (NYSE: FIX) is a major winner from surging artificial intelligence (AI) data center investment. A high proportion of a data center's cost is in mechanical, electrical, and plumbing (MEP) systems, not least to ensure adequate cooling for heat-intensive IT racks. That's led to booming demand for the company's services and an incredible 1,160% return for investors over the last three years.
The increase comes down to surging orders driving backlog and revenue growth, along with margin expansion. The growth in its backlog (shown below) leads to highly predictable revenue growth in the future.
Data source: Comfort Systems presentations. Chart by the author.
Details
Source
Originally published at www.fool.com.