Quanta Services, Inc. (PWR): A Bull Case Theory

We came across a bullish thesis on Quanta Services, Inc. on Paradox’s Substack by PARADOX INTELLIGENCE. In this article, we will summarize the bulls’ thesis on PWR. Quanta Services, Inc.'s share was trading at $427.80 as of October 6th. PWR’s trailing and forward P/E were 65.25 and 33.44 respectively according to Yahoo Finance.

Quanta Services, Inc. (PWR) stands as a leading infrastructure contractor directly positioned to benefit from the accelerating build-out of transmission and substation networks driven by surging data center interconnection demand. With a record backlog of $35.8 billion and growing exposure to grid modernization, electrification, and digital infrastructure projects, the company is a key enabler of the power capacity expansion needed to support hyperscaler data centers.

Recent policy focus on accelerating energy and connectivity infrastructure deployment has created a favorable environment for Quanta, allowing for faster project approvals and execution timelines. Reflecting strong industry demand, the company raised its 2025 revenue guidance to $27.4–$27.9 billion, underpinned by consistent double-digit growth, as demonstrated by its Q2 2025 revenue of $6.8 billion.

Although specific hyperscaler clients are not disclosed, Quanta’s deep involvement in the infrastructure underpinning these large-scale projects highlights its critical role in enabling the next wave of digital and power infrastructure. Despite this robust outlook, the company faces certain challenges, including a tight skilled labor market, volatility in commodity input costs, and execution risks inherent to complex, large-scale construction projects.

Additionally, while permitting reforms have shortened approval cycles, potential litigation or regulatory delays remain a factor to monitor. Nevertheless, with its diversified service base, operational scale, and strong financial momentum, Quanta Services is well positioned to capture incremental demand from the intersection of data center expansion, grid hardening, and energy transition initiatives—offering investors a compelling exposure to the backbone of the digital and electrified economy.

Previously we covered a bullish thesis on Quanta Services, Inc. (PWR) by Bulls On Parade in May 2025, which highlighted the company’s role in AI-era infrastructure through grid modernization, substation construction, and renewable integration. The stock has appreciated approximately 46% since our coverage as demand for data center power surged. The thesis still stands as Quanta maintains strong backlog and execution. PARADOX INTELLIGENCE shares a similar view but emphasizes policy-driven acceleration and hyperscaler project volumes.

Quanta Services, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held PWR at the end of the second quarter which was 75 in the previous quarter. While we acknowledge the potential of PWR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.