One of the strengths of having worked as a professional trader is the ability to revisit companies that we are familiar with from the past and move quickly on opportunities.

Today we are publishing a special edition of HX Trader to take advantage of the artificial intelligence (AI) related sell-off that hit the stock market today.

The idea is one we traded successfully back in July and is helping to build out the power infrastructure to power AI.

Here is the idea…

The company is Houston, Texas-based infrastructure services company Quanta Services, Inc. (NYSE: PWR). They provide these services to the electric, industrial and communications industries.

A Vietnam veteran, John Colson, founded the company back in 1997. Today, it employs over 40,000 people and generates over $20 billion of annual revenue.

They are one of the leading companies for building electric and telecommunications infrastructure. This has historically been a good business, but it has seen a significant acceleration in the last few years due to government spending.

We are putting this out as a special report, so for the deeper dive, please see our original report here.

Since we published that report in early July, the company has continued to beat numbers and see rising earnings revisions.

Here is the table of how they have performed versus analyst estimates…

Here is the chart of the share price (black) along with the analysts’ estimates for earnings per share or “EPS” …

At the end of the chart, you can see the stock has sold off hard today.

About a week ago, a Chinese artificial intelligence (AI) start up called DeepSeek announced they used a new AI methodology that achieved some incredible results.

The simple version is they said they achieved similar results to the leading AI models at a fraction (1/20^th) of the cost.

This news has led to all stocks in the AI ecosystem getting hit hard, led by NVIDIA Corporation (NASDAQ: NVDA) which is down almost -20%. NVDA is particularly vulnerable given that NVDA’s revenue has gone from $27 billion annually to almost $200 billion in the past few years. This has left them very vulnerable to disappointing investors.

We wrote about this just last week in our free e-letter Truth & Trends. You can read that issue here.

PWR stock is down almost as much NVDA. Does this make any sense?

Not at all.

The fundamental reality is that the United States needs to buildout our power infrastructure regardless of the growth of AI power demand. Even without AI, our electric system is on the verge of a catastrophic collapse.

We think that the major hyperscalers – companies like Meta Platforms, Inc. (NASDAQ: META) and Alphabet Inc. (NASDAQ: GOOG) – will use this new model to build even more effective AI.

There is no scenario where we do not build a lot more power infrastructure in the US to meet our existing – and future – needs.

We want to own a company that will help accomplish that buildout, and that company is PWR.