Quanta Services' growth in renewable energy and data centers

What happened: Quanta Services (PWR) has emerged as a key player in data center infrastructure, earning a spot among the top 10 construction stocks for this sector. On May 4, 2026, TD Cowen analyst Marc Bianchi raised PWR's price target to $775, reflecting confidence in the company's growth prospects. Meanwhile, PWR's stock was trading at $577.95 on March 19, with trailing and forward P/E ratios of 84.99 and 43.86 respectively. Vertiv, another player, reported strong revenue and earnings growth in 2025, driven by accelerating AI infrastructure investments by hyperscalers.

Market impact: This narrative is driving growth in the data center and renewable energy sectors. Quanta Services' expanding role in data center construction is pushing up demand for its services, while Vertiv's strong performance is attracting investors seeking exposure to the high-growth AI infrastructure market. The bullish sentiment around these companies is also driving up their stock valuations.

What to watch next: Quanta Services' Q2 2026 earnings, scheduled for release on July 21, will provide insights into the company's progress in the data center and renewable energy sectors. Additionally, investors should monitor the AI infrastructure investments by hyperscalers, as this will directly impact Vertiv's growth trajectory. Lastly, any updates on PWR's stock valuation, given its recent price increase, will be crucial to watch.