Jim Cramer reiterated a buy rating on Quanta Services Inc. (NYSE: PWR), positioning the company as an essential player in the artificial intelligence infrastructure buildout. The stock rose nearly 16 percent today.
Cramer called Quanta Services the "obvious winner when you want to build out the electric grid." The company installs power lines and related infrastructure—a business Cramer said is now "roaring" due to AI demand, after being "decent" for years.
During a recent conference call, Quanta management outlined the scale of current demand. Utilities face requests to double capacity, while technology customers demand rare speed and scale. Data centers require constant power and never-ending electricity supply.
Quanta Services provides engineering, construction and maintenance for energy and communication systems, including electrical grids, renewable power plants and natural gas pipelines. It builds connections between grids and data centers using American labor.
The market has bifurcated into data center stocks and everything else, Cramer said. The S&P 500's recent all-time high reflects a manufacturing mosaic spanning power infrastructure, cooling systems, networking gear and real estate—not just technology. Quanta fits this broader infrastructure demand.
Cramer also recommended Planet Labs (PL) as a buy. The stock previously rose on speculative fervor, then declined, but "has done going down" and posted gains today.
For Duke Energy (DUK), Cramer suggested buying at current depressed levels. He indicated preference to enter at a 4 percent dividend yield.
Duke Energy's yield competes with the 5-year Treasury at 5 percent, Cramer noted, calling the Treasury "the best piece of paper out there right now." That yield competition has weighed on the utility stock.
Despite election-related uncertainty, Cramer maintains conviction that a significant infrastructure buildout will continue. He expects increased construction activity once the election cycle concludes.
