The Best Construction Stock for Data Center Infrastructure

Quanta Services, Inc. (NYSE:PWR) is a leading provider of infrastructure solutions for a variety of industries, including utility, power generation, communications, pipeline, manufacturing, and energy-related sectors. The company has recently received positive attention from analysts following its strong Q1 results and increased guidance.

On May 4, 2026, TD Cowen analyst Marc Bianchi raised the firm’s price target on Quanta Services, Inc. to $775 from $570 and maintained a Buy rating. The analyst cited the company’s strong Q1 results and higher guidance as reasons for the optimistic outlook. Bianchi noted that the updated guidance still appears conservative, indicating further potential upside for the stock.

Similarly, on May 1, 2026, Stifel analyst Brian Brophy also raised the firm’s price target on Quanta Services, Inc. to $784 from $654 and maintained a Buy rating. Brophy highlighted the company’s Q1 results, which exceeded expectations, and pointed to Quanta’s announcement of expanding its square footage capacity across manufacturing, fabrication, and logistics. This expansion could potentially lead to major hyperscaler awards related to modularized data center construction using off-site fabrication, with additional awards expected in the future.

Quanta Services, Inc. reported adjusted EPS of $2.68 for Q1, surpassing the consensus estimate of $2.03, while revenue rose to $7.87 billion compared to expectations of $6.99 billion. President and CEO Duke Austin attributed the company’s strong performance to double-digit growth in revenue, adjusted EBITDA, and adjusted EPS, with a record backlog of $48.5 billion. Austin emphasized that Quanta’s revenue growth and margin performance exceeded expectations across all operating segments, supported by the company’s solutions-based operating model and skilled workforce.

In light of its strong performance, Quanta Services, Inc. raised its FY26 adjusted EPS outlook to $13.55-$14.25 from $12.65-$13.35, with increased revenue and adjusted EBITDA guidance as well. The company now expects FY26 revenue to range from $34.7 billion to $35.2 billion, compared to previous estimates of $33.25 billion to $33.75 billion.

While Quanta Services, Inc. presents a compelling investment opportunity, investors may also want to consider other AI stocks with greater upside potential and less downside risk. For those seeking undervalued AI stocks that could benefit from current market trends, exploring alternative investment options may be beneficial.

Overall, Quanta Services, Inc. continues to demonstrate strong performance and growth potential in the infrastructure solutions market. Investors should closely monitor the company’s developments and consider their investment strategy in light of the latest industry trends and opportunities.