Oliver | MMMT Wealth
Founder of MMMT Wealth, CPA, Technical/Fundamental Analysis
Investment in the power grid is being underestimated: annual grid investment is expected to run about $600B through 2030. The best smart-grid plays are Itron in energy resource management, MYR Group in transmission and distribution lines, GE Vernova in grid equipment and Eaton in power management, and none of them looks overvalued. x.comÂ
Grid suppliers are winning the next AI bottleneck, because power must reach data centers through transformers, substations, switchgear and transmission the grid lacks. Transformer lead times stretched from 24 months in 2019 to five years, per HSBC, and PJM got 220 GW of generation applications by April 2026 versus 2.1 GW connected in 2025. The White House designated switchgear and substations defense-essential. Forgent, Eaton, Powell, Hubbell, nVent, Quanta, MYR, AMSC, GE Vernova and Itron fit. … Show more
Quanta Services and Eaton sit in the underpriced part of the AI power trade, the infrastructure between the generator and the rack. Vistra and GE Vernova are already consensus, and the constraint chain keeps moving: grid interconnect queues and transmission permitting are the real bottleneck before a single megawatt reaches a data center. x.comÂ
GE Vernova is highly expensive, and infrastructure booms always look unstoppable until they stop; a cyclical boom-bust stock should not need a three-years-out view to reach a 20 P/E. Gordon Johnson's $470 price target is right in theory. Barring a crash, it is probably among the safer expensive stocks through year end as fund managers pad top holdings, but the cycle will pass, as similar ones did before the financial crisis. x.comÂ
Durable demand makes these eight companies attractive at forward earnings multiples below their historical medians. Vistra has long power deals; ASML expects demand above capacity in 2027-28; GE Vernova's turbines are sold out through 2028. Eaton expects data-center deliveries from 2028. Waste Management leads garbage collection; American Tower has $23B in scheduled rent, Linde $64B in commitments, and BWX Technologies an $8.4B backlog backed by Navy demand. GE Vernova's multiple is still high. … Show more
The Magnificent Seven look better than grid and electrical equipment stocks, which carry some of the most egregiously high valuations. That group spans power equipment such as GE Vernova and ABB, switchgear from Powell and Eaton, cooling and panels from Vertiv and nVent, plus modular nuclear, fuel cells and batteries. A failed breakout on Eaton's weekly chart would be a big blow to the AI trade. x.com x.comÂ
GE Vernova and Siemens Energy are far too expensive relative to the value of power generation assets, and something has to give. x.com x.comÂ
Energy infrastructure looks like the next memory trade, as the AI race shifts from software to energy. China produces about three times as much energy as the US, and Musk and Jensen Huang said every 5GW of new energy adds about 1% to US GDP. AI needs power, cooling and infrastructure, so the companies enabling the buildout, from Vistra, Constellation and GE Vernova to Bloom Energy, Vertiv, BWXT, Cameco, Enphase and Tesla, are worth accumulating on weakness. x.com x.comÂ
Nexans' huge leverage to European grid spending makes its shares look too cheap for a company of its quality. The stock trades at roughly 13x consensus 2027 earnings and sold off with data-center infrastructure stocks despite AI accounting for under 5% of revenue. Management guides to positive single-digit growth into 2027, with large-project tendering picking up in the second half of 2027 through 2028. x.com x.comÂ
AI data centers' power needs support a portfolio spanning onsite generation, nuclear, grid hardware and fuel. Oklo offers onsite nuclear and Bloom fuel cells that bypass the grid; Constellation has nuclear baseload under a 20-year Microsoft PPA and Vistra a 20-year Meta deal. GE Vernova supplies grid hardware, Vertiv cooling and power systems, Eos long-duration storage and NextEra a renewable pipeline, while Centrus supplies HALEU for modular reactors and Energy Fuels domestic uranium. x.comÂ
Power equipment, not land, is the binding constraint on new data centers, favoring GE Vernova, Eaton, Quanta, Vertiv, Powell and Constellation. New heavy-duty gas turbine orders take about three years, with GE Vernova holding roughly 10 GW of slots across 2029 and 2030. Large power transformers exceed 160 weeks versus about 50 in 2021, and PJM projects online in 2025 averaged over seven years from queue to operation. Acreage can be released with a signature; turbines cannot. x.comÂ
