Buy 2 High-Flying AI Construction Giants for Solid Short-Term Upside

The artificial intelligence (AI) frenzy remains intact as the AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. Here, we have narrowed our search to two Zacks top-ranked AI-powered construction giants that have posted solid second-quarter 2026 earnings results and guidance. These stocks have flourished year to date, yet they have solid upside potential for the short term. 

The stocks are: Quanta Services Inc. PWR and Comfort Systems USA Inc. FIX. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our two picks year to date.

Image Source: Zacks Investment Research

Quanta Services Inc.

Quanta Services is well-positioned to capitalize on robust infrastructure spending across utility, power generation, technology and load center markets. The ongoing expansion of AI data centers, grid modernization, renewable generation and advanced manufacturing is driving customers to undertake larger, multiyear infrastructure programs.

Surging AI-related power demand and expanding utility investments are driving data center project opportunities, making data centers a central pillar of PWR’s long-term growth strategy. The company is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation. 

PWR expects to invest $500-$700 million over the next several years in power transformer manufacturing facilities and related strategy, which is intended to double transformer manufacturing capacity.

Long-Term Prospects

PWR is well-positioned to capitalize on robust infrastructure spending across utility, power generation, technology and load center markets. Management believes that the company is still in the early stages of the current demand cycle, with larger utility-generation and technology/load center programs expected to be built over the coming years.

These favorable trends helped drive total backlog to a record $53.4 billion as of June 30, 2026, up 49% year over year from $35.8 billion in June 2025. The increase was broad-based, with Electric Infrastructure Solutions backlog rising year over year to $43.8 billion from $30.3 billion, while Underground and Infrastructure Solutions backlog climbed to $9.7 billion from $5.6 billion.

Strong Guidance

Quanta raised full-year 2026 expectations. Management forecasts consolidated revenues of $39.3-$39.7 billion (compared with the prior expectations of $34.7-$35.2 billion) and adjusted EPS of $16.45-$16.95 (compared with the earlier projection of $13.55-$14.25). Adjusted EBITDA is projected in the range of $4.09-$4.21 billion, up from the earlier expectation of $3.49-$3.65 billion.

Solid Estimate Revisions

Quanta has an expected revenue and earnings growth rate of 38.4% and 52.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 16.8% over the last 30 days. 

PWR has an expected revenue and earnings growth rate of 14.9% and 15.8%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 15.4% over the last 30 days. 

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Impressive Price Upside Potential

The short-term average price target of brokerage firms represents an increase of 26.7% from the last closing price of $639.34. The brokerage target price is currently in the range of $690-$976. This indicates a maximum upside of 52.7% and no downside. 

Comfort Systems USA Inc.

Comfort Systems operates primarily in the commercial and industrial heating, ventilation and air conditioning (HVAC) markets. The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for specialized HVAC solutions from FIX. 

Cooling systems for these facilities should deliver precise and reliable performance, prompting investments in advanced technologies such as liquid cooling and modular units. This segment is becoming a significant growth driver for FIX, offering high-margin growth and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche. 

Growing Backlog

Comfort Systems highlighted continued strength in AI-powered data center construction, while industrial customers remained the primary growth engine. Backlog as of June 30, 2026, totaled $14.06 billion, increasing 12.9% from $12.45 billion at March 31, 2026, and jumping 73.2% from $8.12 billion reported a year ago. 

On a same-store basis, backlog climbed to $13.70 billion from $8.12 billion in the year-ago period. FIX guided 2026 same-store revenue growth in the mid- to high-30% range, alongside capital spending of about 5% of revenues.

Strong Guidance

Management expects faster same-store growth for 2026 and additional modular capacity by late summer 2027. FIX expects same-store revenue growth in the mid- to high-30% range. 

Solid Estimate Revisions

Comfort Systems has an expected revenue and earnings growth rate of 38.3% and 58.8%, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.6% over the last 30 days. 

FIX has an expected revenue and earnings growth rate of 20% and 26.1%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 9.2% over the last 30 days. 

Image Source: Zacks Investment Research

Excellent Price Upside Potential

The short-term average price target of brokerage firms represents an increase of 29.3% from the last closing price of $1,655.61. The brokerage target price is currently in the range of $1,910-$2,400. This indicates a maximum upside of 45% and no downside. 

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

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This article originally published on Zacks Investment Research (zacks.com).

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