infrastructure giant with a $40B backlog

AI is hungry. It needs power, lots of it. But the US power grid is old. It wasn’t built for data centers that drink electricity like water. That’s the bottleneck. Quanta Services (PWR) is the uncorker. They don’t build the AI chips. They don’t run the servers. They build the stuff that powers the stuff. Transmission lines. Substations. Underground cables. If electrons need to move from point A to point B, Quanta builds the road. Why them? Scale. The grid is fragmented. Most repair crews are local mom-and-pops. Quanta is massive. They have the labor force. They have the equipment. They can deploy an army of linemen anywhere in the country. Utilities are panicking. They need to upgrade now. They are boosting spending by 25-30% over the next three years. They can’t do it alone. They call Quanta. The proof is in the backlog. They have nearly \~$40B in signed contracts. That’s not “maybe” money. That’s “we are doing this” money. The numbers (Q3 2025)... Market cap: \~$64B Revenue: $7.6B (up 17.5% vs last year) Adjusted EPS: $3.33 52-week high: \~$469 52-week low: \~$227 The risks... It’s not cheap. You’re paying a premium for that growth. If the AI hype cools, the stock does too. Weather delays projects. Regulations slow things down. Bottom line... The AI boom is real. But it hits a wall without power. Quanta is the sledgehammer breaking down that wall. As long as data centers need juice, Quanta has work to do. Anyone else keeping an eye on this one and why? Dan from Money Machine Newsletter