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High-end semiconductors and large language models (LLMs) dominate the discussion when it comes to artificial intelligence (AI).
Advanced chips are arguably the most important resource for developing AI, and LLMs are the main way people interact with AI today. However, developing AI requires many different industries to work together, from energy to construction to engineering.
AI may be built on cutting-edge chips and headline-grabbing models, but it runs on something far less glamorous: concrete, copper, turbines, transformers, and redundant power. Every new rack of GPUs needs a building to house it, cooling to keep it stable, and electricity that can’t blink—even for a second.
That’s why a different class of winners is emerging from the AI boom: the companies that build data centers, keep them online, and expand the grid to feed their rising load. Among this group, three “pick-and-shovel” stocks are positioned to benefit: EMCOR Group, Cummins, and GE Vernova. Even after strong runs, Wall Street analysts still see meaningful upside in each name.
1. EMCOR Group: Data Center Buildouts Are Pushing Contract Backlogs Higher
EMCOR is one of the largest specialty contractors in the United States, providing electrical and mechanical construction services.
The stock has performed very well in 2025, delivering a total return of approximately 38%.
With one quarter left in 2025, analysts see EMCOR’s revenue rising 15%. This would be its second-fastest annual revenue growth in the last 10 years, bested only by 2024’s 16% growth.
Data centers have been a big part of EMCOR’s story. Last quarter, the company said that data center demand led remaining performance obligations (RPOs) in its Network and Communications end market to a record $4.3 billion. This figure has nearly doubled compared to a year ago.
Currently, the consensus price target on EMCOR sits near $693, implying around 11% upside in shares. However, two price targets updated after the company’s latest earnings release on Oct. 30 are considerably more bullish. DA Davidson and Robert W. Baird’s Oct. 31 targets average out to nearly $757, suggesting shares could rise by 21%.
2. Cummins: Backup Power Demand Is Offsetting a Softer Truck Cycle
Despite many knowing Cummins for the heavy-duty engines it builds for diesel trucks, the company has eggs in many other baskets as well.
Cummins reported a 38% drop in its heavy-duty truck component sales last quarter, yet the stock has delivered a total return of over 51% in 2025. This comes as the company’s power systems segment is picking up the slack. This segment saw revenue growth of 18%, with North American power generation equipment sales rose by 27%, driven by data center demand.
Cummins sells extremely powerful backup generators to data centers, allowing them to continue operating should they lose access to their main power source. These generators are critical, as losing power means that cloud-based applications can become unavailable which can disrupt a company’s operations and the operations of its customers.
The MarketBeat consensus price target of $493 implies a roughly 5% downside for CMI. However, the tables turn when looking at price targets updated after the company’s latest earnings release on Nov. 7. Among them, the average target is around $578, implying 11% upside.
3. Analysts Eye +20% Upside in GEV After Outlook Update
GE Vernova, which serves data center demand through its power and electrification segments, has delivered a total return of 103% in 2025.
The company is a direct play on the rising electricity demand that AI workloads can create. Its power and electrification businesses cover the full chain from generation (including gas turbines) to delivery (including transformers and broader grid equipment).
Last quarter, orders increased by 55%, alongside a total backlog of over $135 billion. By 2028, GE Vernova expects its backlog to grow to $200 billion, with both its gas power equipment and electrification backlog doubling. The company also plays in the small modular nuclear reactor space and sees potential to generate orders from these products in the coming years.
The MarketBeat consensus price target of $691 implies less than 4% upside potential. However, GEV issued a substantial update to its long-term outlook on Dec. 9. Price targets released after that date average out to around $817, suggesting strong upside potential of 22%.
3 Ways to Own the Physical Infrastructure Behind AI
EMCOR, Cummins, and GE Vernova illustrate a useful way to think about AI exposure: not just software and chips, but the real-world infrastructure required to build, power, and connect compute at scale.
The trade-off is that these are still cyclical businesses. Data center capex can slow, project timing can slip, and power-grid bottlenecks can shift demand between quarters. Still, with backlogs, order momentum, and analyst targets that remain constructive even after strong runs, these three names sit squarely in the “picks and shovels” lane of the AI buildout.