economy

February 24, 2026

This AI Derivative Play Is One of the Hottest Stocks of the Year. Goldman Sees Even More to Go

The bank believes it gave a boost to the company following its earnings report that delivered strong guidance for 2026.

This AI Derivative Play Is One of the Hottest Stocks of the Year. Goldman Sees Even More to Go

TL;DR

  • Goldman Sachs raised Quanta Services' price target to $685, a 38% increase, and maintained a buy rating.
  • Quanta Services has surged 111% in the past year, benefiting from the AI data center buildout increasing demand for power.
  • The company reported a fourth-quarter earnings and revenue beat and provided strong 2026 guidance, exceeding consensus estimates.
  • Goldman believes Quanta's strategy will drive compound earnings growth through the decade, leveraging existing businesses and new growth avenues from acquisitions.
  • A joint venture with Zachry Group to develop gas power generation facilities is identified as a new growth source.
  • Goldman expects some margin improvement over time due to labor efficiencies but does not anticipate material increases from pricing.

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