What Happened?
A number of stocks jumped in the morning session after surging capital spending for artificial intelligence infrastructure and defense bolstered demand across power systems, data center construction, and electrical grid buildouts, with gains amplified as the S&P 500 and Nasdaq Composite reached fresh all-time highs.
Capital allocations directed toward artificial intelligence facilities have intensified demand across the industrials sector, as massive computing clusters require extensive power upgrades and physical installations as reported by AP news. Companies providing electrical grid equipment, backup generation, and specialized data center construction are seeing accelerated project orders. Power supply constraints have become a focal challenge for tech infrastructure development, turning industrial suppliers into critical enablers of technology adoption.
Meanwhile, sustained government and corporate budgets for defense modernization provide an additional pillar of predictable revenue. Analysts note that these dual infrastructure drivers have helped insulate power systems and industrial equipment providers from broader macroeconomic cyclicality, reinforcing market momentum as investors anticipate continued multi-year order backlogs across the sector.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Aerospace company Curtiss-Wright (NYSE: CW) jumped 2.2%. Is now the time to buy Curtiss-Wright? Access our full analysis report here, it’s free.
- Building Materials company Tecnoglass (NYSE: TGLS) jumped 3.7%. Is now the time to buy Tecnoglass? Access our full analysis report here, it’s free.
- HVAC and Water Systems company AAON (NASDAQ: AAON) jumped 2.6%. Is now the time to buy AAON? Access our full analysis report here, it’s free.
- Construction and Maintenance Services company Primoris (NYSE: PRIM) jumped 8.2%. Is now the time to buy Primoris? Access our full analysis report here, it’s free.
- General Industrial Machinery company Albany (NYSE: AIN) jumped 2.2%. Is now the time to buy Albany? Access our full analysis report here, it’s free.
Zooming In On Primoris (PRIM)
Primoris’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 8.7% on the news that WTI oil fell 4.7% and Treasury yields declined on Iran-US peace progress. Construction and maintenance companies (MasTec, Quanta Services, MYR Group, EMCOR, Comfort Systems) execute the long-cycle infrastructure projects: power transmission, data center buildouts, electrical and mechanical work that underpin both the traditional economy and the AI infrastructure trade.
These companies operate on multi-year contracted backlogs that they convert to revenue as projects ship. Lower oil reduces their fuel costs (heavy equipment, transportation, hot mix asphalt for paving), while lower yields reduce financing costs for their customers (utilities, data center operators, REITs). The AI infrastructure buildout adds a third tailwind as companies like Quanta and MYR are heavily exposed to the electrical grid expansion that AI data centers demand.
Primoris is down 34.3% since the beginning of the year, and at $85.84 per share, it is trading 57.7% below its 52-week high of $202.92 from May 2026. Despite the year-to-date decline, investors who bought $1,000 worth of Primoris’s shares 5 years ago would now be looking at an investment worth $3,451.
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