A shift in investor considering has been hitting the “Magnificent Seven” massive tech shares lately, as traders wonder if they’re overspending on synthetic intelligence (AI) infrastructure buildouts. A few of that cash is flowing into names that may profit from all of the heavy tech firm spending. That features energy suppliers, knowledge heart house owners, and HVAC service suppliers, together with set up and upkeep.
Argan (NYSE: AGX) is a kind of names benefiting from the fast progress in AI. Shares of the economic firm soared 16.4% this week, based on knowledge supplied by S&P International Market Intelligence.
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Argan provides engineering, building, and related commissioning, upkeep, and consulting providers to the facility and industrial building industries. The demand for its providers has surged as knowledge facilities are being quickly constructed, driving elevated energy necessities.
Whereas income for the primary 9 months of 2025 rose 6.4% yr over yr to about $682 million, the corporate reported a file backlog of $3 billion. Some traders have been monitoring its rising enterprise, and the inventory has soared 177% within the final yr.
For traders who assume it could be too late to reap extra good points, they could be proper, no less than for an additional yr or so. Argan’s ahead price-to-earnings (P/E) ratio is now about 43, double its three-year common. Traders ought to hold it on their radar, nonetheless, as firms assess how a lot return they’ll get from the huge knowledge heart progress. If returns on these investments are substantial, tech firms will want a lot extra assist with what Argan offers.
Before you purchase inventory in Argan, take into account this:
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