Business

Louis Navellier says avoid IPO FOMO with five hidden AI plays

By Louis Navellier TheStreet

Updated June 9, 2026 1:12 PM

During this week of trading, with the heated anticipation of the SpaceX initial public offering (IPO), it's particularly important for investors to remember the Facebook IPO.

Investors were clamoring. It was the biggest event on Wall Street in decades. The stock was priced at $38. By August, it closed at about $17.50, a loss of more than 50%.

So much for FOMO.

I see the same unbridled frenzy for SpaceX and, for that matter, Anthropic. Those who don't learn from the lessons of the past.

The fact is, IPOs are a bad bet, even when a good company is going public.

There is uncertainty about how the company will trade, report results, how analysts' ratings will change, the guidance the company reports, and whether or not they tend to beat or meet it.

Things will ultimately settle down, and that's when smart investors can evaluate the company on its merits, not its possibilities.

For now, it's time for investors to turn their attention to companies that have a proven track record, not only in their results, but in terms of what analysts and investors can reasonably rely on.

Here are five "pick and shovel" companies that will profit from the AI boom, not by building large language or agentic models, but by helping mega tech to build the infrastructure they need to change the world and how we live and work.

The picks and shovels of the AI boom

Here are five AI infrastructure stocks on my radar that stand to gain from the AI boom.

Quanta Services

This company is essentially rewiring America for AI.

As AI data centers continue to consume more electricity, utilities need major transmission and grid upgrades, and Quanta Services (PWR) is one of the leading companies helping to make that happen. This is a solid AI infrastructure stock.

For the most recently reported quarter for the three months ended March 31, Quanta increased earnings per share by 51% following 13% growth last year, and sales are forecast to grow 27.2%, while earnings are forecast to grow 33.4%.

They have positive analyst revisions and a very good earnings surprise history.

Comfort Systems

Cooling has become one of the biggest bottlenecks in the entire AI buildout. Data centers require a lot of air conditioning. That's what Comfort Systems (FIX) provides; their job is to cool the data centers.

For the most recently reported quarter for the three months ended March 31, Comfort Systems increased earnings per share by 121% following 98% growth last year.

This is textbook momentum.

The company's sales are forecast to increase 36.8%, while its earnings are forecast to increase 59.6%. They have positive analyst revisions and a very good earnings surprise history.

nVent Electric

nVent provides critical electrical and power management solutions. It is a British company, but nVent also sells its equipment in America. The data center boom is global.

nVent (NVT) experienced a sales decline year over year in their most recent quarter; however, sales are forecast to grow 30.2%, and their earnings are forecast to grow 34.7%.

They have positive analyst revisions and a good earnings surprise history. It's checking all my boxes, which is why I'm recommending it.

MasTec Inc.

MasTec (MTZ) is a large-scale contractor of energy, utility, and communications infrastructure.

For the most recently reported quarter ended March 31, MasTec increased earnings per share by 492% following 66% growth last year.

Their sales are forecast to be up by 21.4%, while earnings are supposed to be up 49.3%. They have positive analyst revisions and a strong earnings outlook, with good surprises.

The interesting thing about MasTec is that if America decides to help Cuba with its power grid problem, I suspect MasTec might get the contracts.

Sterling Infrastructure

The company is benefiting from all the data center construction, providing e-infrastructure, transportation, and building solutions.

For the most recently reported quarter ended March 31, Sterling (STRL) increased earnings per share by 141% following 13% growth last year.

This company has 60.4% forecasted sales growth, 97.3% forecasted earnings growth, and a very strong earnings surprise history. It has a high quantitative score in my Stock Grader, which indicates high institutional buying pressure.

It is essentially a high-alpha stock moving independent of the market. It is one of my new recommendations that we have in our portfolio.

The bottom line: The AI boom is far from over

The correction in AI-related stocks is merely profit-taking and a healthy rotation into other stocks, so money is not leaving the stock market, which is broadening out.

Investors should not just look at the biggest AI names but should also look at the companies building the infrastructure that makes AI possible.

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This story was originally published June 9, 2026 at 1:03 PM.