3 Non-Tech Stocks Still Winning Big on AI

Key Points

• Investors seeking AI exposure without direct tech-sector risk can consider Powell Industries, AAON, and EMCOR Group, all benefiting from data center demand.
• Powell Industries and AAON have posted strong backlog growth and revenue gains, but their share prices have already risen sharply, raising valuation concerns.
• EMCOR Group shows steady revenue and earnings growth with a more modest year-to-date gain, and analysts see further upside potential ahead.

The AI-driven tech boom continues, but for investors worried about potential overexposure, it can be challenging to avoid some of the biggest names in technology. Even those seeking out overlooked tech investment targets may want greater diversification into other sectors. After all, energy, industrials, and other segments of the market are also performing quite well.

It's absolutely possible to build exposure to AI trends without leaning too heavily toward tech names. Companies providing data center services and equipment, including construction work, have been thriving despite not being part of the tech sector. The firms below all have the potential to continue to benefit as AI demand remains strong, but will not lead to additional direct exposure to tech.

Massive Demand Increase for Powell, But Valuation May Be a Concern

Powell Industries Inc. NASDAQ: POWL designs and builds customized power control and distribution products in addition to a range of other automation, metering, and data acquisition systems. While the firm has traditionally served customers in the energy, mining, and utilities sectors, it has increasingly focused on data center clients.

Business seems to be accelerating, based on two significant projects the firm won in Q2 2026, each worth more than $75 million, and a post-quarter data center award exceeding $400 million.

This should help to drive revenue growth into the future—the firm's $297 million in Q2 revenue was solid but up only about 6% year over year (YOY), so there is ample room for improvement.

Gross margin fell modestly on a YOY basis, but backlog is massive at $1.8 billion (up 33% YOY). $490 million in new orders in the last quarter indicates just how much demand there is for Powell's products, and it is expanding capacity in a sustainable, self-funded way that has not yet required dilution for shareholders.

The issue for investors may be whether the recent rally in POWL shares has room to run—the stock has already returned about 120% year to date (YTD), and with a price-to-earnings (P/E) ratio of 45, it is not exactly cheap. Analysts still favor it overall, though, with four Buys and three Hold ratings.

A Fast-Growing HVAC Firm Works to Build Capacity and Improve Margins

Cooling is a major engineering challenge for data centers, which must maintain appropriate temperatures in order to avoid hardware malfunctions. Industrial HVAC firms like AAON Inc. NASDAQ: AAON have emerged as a pivotal part of the data center industry as a result.

AAON's recent financials demonstrate how important it has become to data center builders and operators: in Q1 2026, the firm saw record quarterly net sales of nearly $497 million, up 54% YOY, as well as a backlog of $2.1 billion. This is more than double the backlog from just one year prior, underscoring the momentum in data center demand for HVAC products and services.

As a result, AAON has updated its full-year outlook for 2026 and now anticipates about 40% to 45% in sales growth. Gross margin was a bit less stable in the early part of the year—it fell by 170 basis points YOY to 25.1%—but management sees it improving to a range of 27% to 28% by the end of 2026 as AAON works to build internal capacity. In the meantime, capital expenditures (CapEx) will remain high, after about $53 million in Q1 alone.

Like Powell, AAON has risen rapidly this year, climbing by about 48% YTD. Analysts still see it as a Buy, however, with four Buy ratings and two Holds, despite minimal upside potential.

Steady Growth From EMCOR, With Room Left to Run

While both of the companies above specialize in certain products or services vital to data center upkeep, EMCOR Group Inc. NYSE: EME is a broader electrical/mechanical contractor involved in data center construction. Its services range from HVAC to electrical installation, fire protection, automation, and more.

The company has managed to meet rising demand for its services—it experienced almost 20% YOY revenue growth to $4.63 billion for the first quarter of the year—while maintaining operating income of $404 million and improving diluted earnings per share (EPS) by about 30% YOY as well.

Even as its mechanical construction margins have become somewhat compressed, with operating margin falling to 10.9% from 11.9% a year earlier, this is likely due more to ongoing variability and pass-through work than an inability to scale.

EMCOR heads into the second half of the year with strong performance obligations and optimistic management, which sees full-year revenues reaching an impressive $18.5 billion to $19.3 billion alongside EPS ranging from $28.25 to $29.75.

Shares of EME are up 27% YTD, a more modest gain than the other companies on this list, and still have another 12% in upside potential according to analysts. Nine Buy ratings and two Holds suggest that Wall Street remains optimistic about EMCOR's abilities to navigate a high-demand environment going forward.