The AI Boom Has a Power Problem. These Industrial Stocks Are Cashing In.

It's no secret that the booming demand for artificial intelligence (AI) applications is straining AI data centers' and hyperscaler owners' abilities to secure long-term power. That applies to the existing data centers and those being built as part of a multiyear investment cycle. There are many ways to play this theme; let's take a brief look at a couple of them.

The chart below shows just how well the stocks have performed in 2026. It's no coincidence that they have outperformed, as AI investment commitments have continued to surprise on the upside. Consequently, the market had also priced in higher power demand.

NVT data by YCharts

GE Vernova

The startling turnaround in the fortunes of power-related companies is best seen in gas power turbine, electrification, and wind power company GE Vernova (NYSE: GEV). Once the problem child in the former General Electric's portfolio of companies, its exposure to the need for AI data centers to secure power (heavy-duty gas turbines) and electrification equipment to connect them to the grid led it to briefly surpass the market cap of the strongest business of the former GE, GE Aerospace, earlier this year.

From struggling to generate gas turbine order growth in 2015 to 2020, the company now has a $76 billion backlog (compared to $38 billion in overall sales in 2025) and is even able to sign slot reservation agreements (SRAs), whereby customers are willing to pay cash up front to secure slots for gas turbine equipment.

Image source: Getty Images.

Moreover, with every gas turbine that GE Vernova sells, it locks in higher-margin long-term service revenue. As such, higher equipment orders (the company's overall equipment orders rose 106% organically in the first quarter of 2026) will create significant long-term value for the company as its installed base grows.

nVent Electric

Alongside GE Vernova and Vertiv, nVent Electric (NYSE: NVT) was recently identified by Barclays analyst Julian Mitchell as a great way to play the next generation of AI data centers. The exposure to the new 800-volt direct current (VDC) adds to the electrical connection and protection company's existing exposure to the data center market.

Nvidia is developing the architecture for new data centers, which will result in far more graphics processing units (GPUs) in data centers. That's good news for nVent's liquid-cooling solutions, which it collaborates on with Nvidia. In addition, nVent's enclosures and connection solutions continue to grow. Management surprised the market in May by raising its 2026 organic sales growth outlook to 21%-23%, up from 10%-13%.

Image source: Getty Images.

Stocks to buy

Trading at 38 and 37 times 2026 earnings estimates, the two stocks aren't, superficially, good values. However, both companies significantly raised their 2026 earnings guidance on their last earnings calls, and given the accelerating momentum in AI spending, it wouldn't be surprising to see them do the same on the second-quarter earnings calls. As such, they remain good ways to play the need for power solutions in the AI investment boom.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Aerospace, GE Vernova, Nvidia, and Vertiv. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.