3 Power and Grid Stocks That Could Keep Growing Even if AI Spending Slows

Key Points

• Quanta Services, Eaton, and Hubbell benefit from AI-driven power and grid demand but also rely on diverse, non-AI business segments for growth.
• All three companies recently raised their full-year guidance, suggesting AI capital expenditures are translating into tangible orders and stronger backlogs.
• Despite raised outlooks, Eaton's stock has fallen sharply in the past month, showing that AI sector pullbacks can still affect these diversified industrial firms.

Companies like Quanta Services Inc. NYSE: PWR, Eaton Corp. PLC NYSE: ETN, and Hubbell Inc. NYSE: HUBB operate in the "power and grid" corner of the broader AI build-out as established industrial businesses with growth opportunities in multiple categories. While these firms have all been buoyed in recent quarters by AI, they do not rely exclusively on it—and this sets them apart from some of the more tech-centered plays in the AI space.

Each of these three firms has also recently raised guidance, potentially signaling that lofty AI capital expenditures (CapEx) are shifting toward tangible orders and improved visibility for firms that have been, up to this point, less prominent. While there remain physical and regulatory hurdles for companies working to ensure that data centers receive power, the strength of non-AI demand and their technology-agnostic approach help them win regardless of how the AI rollout unfolds.

Quanta's Growth Within AI Is Impressive, But Other Segments May Be Even More Important

Quanta is one of the largest electric power service providers in North America, with a market capitalization approaching $92 billion. Despite a dip alongside the broader AI industry in recent weeks, shares of PWR remain up about 44% year to date (YTD).

Helping to mitigate the impact of the sell-off is Quanta's latest earnings performance, which exceeded analyst expectations across revenue, adjusted EBITDA, adjusted earnings per share (EPS), and more. Free cash flow reached a quarterly record of $1.2 billion.

It's no surprise that AI-related demand is contributing to these results and helping to fuel backlog growth up to about $64 billion as of the end of Q3 2026, but Quanta's demand is accelerating across all segments. The company has pointed to utility, renewable, generation, and transmission as some of the many business lines that are seeing increased demand and revenue.

The fact that Quanta raised its 2026 outlook, now projecting revenue between $41.3 billion and $41.6 billion, is a reflection not only of the company's strength in the AI industry but of its broader successes. Investors might see this as a reason to bet on the company even if pure-play AI firms have behaved less predictably toward the end of the year.

Eaton's Cooling Business Continues to Grow, But Reliance on AI Is Still a Factor

Eaton's involvement in the AI infrastructure industry is in providing switchgear, power distribution equipment, and cooling services, among other things. As of Q3 2026, the company's record performance—including 28% year-over-year (YOY) revenue growth, segment margins of 25.3%, and adjusted earnings per share (EPS) 14 cents above predictions—was due both to the company's growing thermal business and to non-AI demand.

Eaton acquired Boyd Thermal in March 2026, and the strength of this new segment of Eaton's offerings has prompted the company to raise its 2026 outlook and highlight growth opportunities in 2027 as well. There may be significant potential for the company as it combines cooling capabilities with its pre-existing power infrastructure offerings.

This all bodes well for investors so long as AI demand continues, but, like Quanta, the bet becomes less risky given Eaton's strong electrical demand outside of the industry as well. Electrical orders climbed by 43% YOY on a rolling 12-month basis, with backlog up 46%; both figures reflect demand across AI and non-AI markets.

Still, AI is a critical part of Eaton's success, and the pullback across the industry has impacted ETN shares fairly heavily; they are down about 16% in the last month alone.

Hubbell Can Lean on Grid Modernization as AI Demand Grows

With connections to the AI industry through both its utilities business—including connectors, insulators, and other hardware components—and, more modestly, through its electrical solutions segment, Hubbell is working to build its capacity to meet data center demand. The company's backlog increased by more than $500 million year-to-date through Q3 2026, primarily from transmission and substation projects.

Like the other firms on this list, Hubbell raised its full-year outlook across metrics including sales growth and adjusted EPS. Critical to this growth is the acquisition of electrical component maker NSI earlier in 2026.

Hubbell's exposure to non-data center business is robust as well, including grid automation solutions. The company is likely to play a major role in general grid modernization projects across the country going forward, which should help to stabilize demand even if its AI business should falter. Still, given the rapid growth of AI-related sales within Hubbell's Electrical Solutions segment, slower data center spending could weigh on its growth trajectory.