Quick Read
Speaking on CNBC, JPMorgan Private Bank’s Stephen Parker pushed back against the idea that this year’s rally is being carried entirely by the largest Magnificent-7 companies: “I think we are seeing a broadening in market leadership. For a long time it was all about the Mag-7. This year the Mag-7 is barely up. And yet markets are continuing to push to new highs. And while tech continues to be a leader, we’re seeing other sectors like industrials and utilities taking the lead as well.”
Parker framed the rotation towards infrastructure providers: “You’ve seen a transition in market leadership around this AI story. For a number of years it was all about the hyperscalers. This year it’s transitioned to more about the infrastructure providers.”
Infrastructure Companies Are Crushing the Market
Quanta Services (NYSE:PWR) embodies Parker’s infrastructure thesis. Q2 adjusted EPS of $4.24 beat the $3.03 consensus by 39.93%, revenue reached $9.56 billion, up 41.1% year-over-year, and backlog hit a record $53.44 billion. CEO Duke Austin said Quanta is compounding “as our customers accelerate investment in the electric grid, power generation and mission-critical infrastructure that underpin the economy.” Shares are up 43.14% year to date.
GE Vernova (NYSE:GEV) posted Q2 orders of $24.2 billion, up 88% organically, with total backlog at $176 billion and data-center orders exceeding $5 billion year-to-date, more than double full-year 2025. CEO Scott Strazik called the electric power industry “in the early stages of a multi-decade growth opportunity” and expects at least 125 gigawatts of gas equipment under contract by year-end 2026. GEV is up 42.06% YTD.
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Eaton (NYSE:ETN) grew Q2 revenue 21.4% to $8.53 billion, with data-center sales up about 65%. Management sized US data-center backlog at 307 gigawatts, or 15 years of backlog at 2025 build rates. CEO Paulo Ruiz said “data centers remain a key growth driver” across broad end markets. Eaton shares have gained 29.53% YTD.
