It’s virtually unavoidable that investors have taken notice of technology stocks — especially those tied to artificial intelligence. You may already hold a few of these names.
However, savvy investors recognize that headlines often reflect past performance. To truly capitalize on emerging opportunities, you must identify the next wave of growth before it garners widespread attention.
Missed Nvidia in 2009? A Similar Signal Is Flashing Again. In 2009, a “Double Down” signal flagged a little‑known chipmaker that later became Nvidia; now a comparable signal appears for a firm roughly 1/100th Nvidia’s size.
In pursuit of above‑average returns, a handful of industrial stocks appear poised for strong performance. Below is a closer look at two of the sector’s most compelling candidates.
Vertiv Holdings
Evaluating Vertiv Holdings’ (NYSE: VRT) product portfolio may seem unexciting; it focuses on large‑scale power supplies, high‑capacity HVAC systems, and facility‑monitoring technologies.
Examining its primary customers reveals a clear growth driver: data‑center operators requiring efficient electricity use and advanced heat‑management solutions for AI accelerators—needs that were not fully anticipated during the industry’s early stages.
The company’s Q1 revenue rose 30% year‑over‑year to $2.65 billion, reflecting CEO Giordano Albertazzi’s observation that “customers are increasingly prioritizing optimized design, rapid deployment, and operational efficiency when building data‑center infrastructure.” Management expects comparable sales growth for the remainder of the year.
The broader opportunity is substantial. The data‑center cooling market is projected to grow at roughly 12% annually through 2035, while power‑management revenue is expected to expand at about 7% per year. Vertiv is positioned to benefit through partnerships such as its collaboration with Nvidia on 800‑volt direct‑current platforms, as well as its liquid‑cooling technology that can cut cooling‑energy consumption by up to 80% by directly contacting AI processing chips.
Fluor
Fluor (NYSE: FLR) operates in construction, but not of residential homes; it designs and builds semiconductor fabs, chemical plants, nuclear power stations, airport infrastructure, and similar large‑scale projects.
While lucrative, this business involves complex, long‑term contracts that can span years from planning to execution, exposing the company to cost‑overrun risks. A pivotal 2023 event highlighted these challenges and has intermittently pressured the stock.
Since then, Fluor has shifted a larger portion of its $25.7 billion backlog—now 82%—to reimbursable contracts, up from 63% at the end of 2022. This transition should stabilize earnings and benefit shareholders.
Although projected 2023 revenue of just under $15.9 billion represents only modest growth, analysts anticipate 7.5% sales expansion next year, with per‑share profits expected to increase by 27%.
The anticipated acceleration stems from several high‑margin projects slated to commence in the second half of 2026 and 2027, including the limited‑notice‑to‑proceed on LNG Canada Phase 2 and TeraWulf’s expansive data‑center campus, as noted by Standard & Poor’s. If moved to execution phase, these awards could convert into multiyear megaprojects that would fuel revenue growth over the ensuing years.
These developments could convert into multiyear megaprojects that drive revenue growth over the ensuing years. The long‑term upside is not yet reflected in the share price, making Fluor a candidate for long‑term, buy‑and‑hold investors.
