PelicanTrader
Portfolio Manager at Equity Empire, Former Hedge Fund Manager
Forgent Power Solutions, SOLV Energy and Eos Energy can capture federal grid spending after the President invoked the Defense Production Act to declare grid infrastructure critical to national defense. AI data centers have made electricity, not chips, the bottleneck. Forgent makes the transformers, switchgear and substations the order names; SOLV builds new power facilities; Eos makes domestic zinc batteries for long-duration storage, as the order flags foreign supply reliance. x.comÂ
Forgent Power Solutions, Eos Energy and SOLV Energy are undiscovered small caps ideally positioned for President Trump's grid investment plan after the White House declared grid infrastructure essential to national defense and invoked the Defense Production Act. Forgent makes transformers, switchgear and prefabricated power solutions for data centers and grids; Eos makes long-duration zinc battery storage; SOLV builds utility-scale solar, battery storage and high-voltage infrastructure. x.com x.com 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
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
Eos Energy warrants caution near term because it is funding its Frontier Power USA stake with a second equity raise. A registered direct offering with warrants adds to the planned rights offering, growing the share count from both sides with the stock near $6, far below its $19.86 high. The strategic case holds: Frontier moves project capital off balance sheet, and revenue rose 445% to $57 million. The question is whether a $24.3 billion pipeline converts faster than dilution. 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
AI's electricity shortfall creates a massive opportunity for companies solving the power bottleneck. Morgan Stanley estimates a 32 GW US data-center power shortfall by 2028. Constellation Energy and Vistra are nuclear names, Bloom Energy in fuel cells, GE Vernova in power generation and Eaton in grid infrastructure. x.comÂ
Forgent Power Solutions wins on speed and customization for hyperscalers who can't wait years for power equipment, while larger rivals like GE Vernova, Siemens and Hitachi win on scale and backlog. Per zerohedge, data center builders wait 2.5 years for power transformers and 3 years for step-ups. Forgent sells full powertrain solutions that cut field labor and speed installs; backlog hit a record $1.98B, up 157%, with revenue up 103%, bookings up 308% and data centers about 42% of revenue. x.comÂ
Forgent Power Solutions addresses AI's biggest bottleneck, which is power rather than compute, by building the transformers, switchgear and power distribution every AI data center needs. Its bookings grew 308%, a trend worth watching. x.comÂ
Forgent Power Solutions is the highest-upside energy infrastructure stock, a picks-and-shovels play on expanding and upgrading the electrical grid that could be worth $60+ versus about $38 today. @TrackNetWorth counters that grid connection delays will cap the upside before it reaches that target. x.com x.comÂ
Data center and power plays are very undervalued because demand is set to outpace supply by a wide margin. TrendForce expects a 170GW gap by 2030, and a widening gap means massive pricing power gains for Nebius, Cipher, TeraWulf, Hut 8 and Keel Infrastructure that are not priced in. x.comÂ
Forgent Power Solutions' demand is surging, with backlog reaching $3.0 billion, up 256% year over year. Revenue rose 94% to $462 million, and bookings of $1,503 million gave a 3.3x book-to-bill ratio. x.comÂ
