Wolfe Research Bullish on Quanta Services (PWR) Amid Accelerating Power Demand

Quanta Services, Inc. (NYSE:PWR) is one of the best AI energy stocks to buy now.

On January 19, 2026, Wolfe Research issued a constructive outlook for clean energy, noting that the sector entered 2026 with improving fundamentals following a volatile 2025. At the same time, the firm remains bullish on Quanta Services, Inc. (NYSE:PWR), citing a very manageable impact from President Donald Trump’s second term and less-than-expected impact from an execution order associated with clean-energy tax credits.

Meanwhile, the AI-driven data center buildout is drawing increased attention amid accelerating power demand, according to the investment firm. Furthermore, investors’ focus is shifting toward quality cash flows rather than speculative names after valuations received a boost from a strong second-half rally, the firm stated. Amid this backdrop, Wolfe Research cited Quanta Services, Inc. (NYSE:PWR) as its preferred pick, alongside Mastec, given both companies’ strong footprint across power, gas, and transmission markets. The two names were also favored due to a surge in corporate spending on data centers.

Wolfe Research’s update followed Seaport Research’s January 9, 2026, update, where the firm upgraded Quanta Services, Inc. (NYSE:PWR) from ‘Neutral’ to ‘Buy’, setting a $503 price target. While the analyst’s broader picture of the stock remains cautious, the company was the firm’s top large-cap pick for 2026. The firm remained confident in the sector’s outlook due to benefits from a tight U.S. skilled-labor market, power supercycle growth in the Electric Division, and acquisition synergies.

Quanta Services, Inc. (NYSE:PWR) delivers infrastructure solutions across electric power, renewable energy, and underground markets. The company supports utility and energy customers with construction, maintenance, and project services across transmission, distribution, and related systems.

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.

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