Big tech companies like Meta, Amazon, and Palantir are investing heavily in AI, driving a surge in datacenter infrastructure. Goldman Sachs predicts a 165% increase in global datacenter electricity demand by 2030, making utility, infrastructure, and real estate ETFs attractive. AI-driven growth is expected to boost regulated utilities like NextEra and Duke Energy, as well as companies upgrading the electrical grid like Johnson Controls and ABB. Infrastructure-focused ETFs like PAVE and IYJ offer exposure to the concrete-intensive reality of AI clusters, while REITs like XLRE benefit from the demand for digital infrastructure. This presents a long-term investment opportunity for ETF investors.
Looking back on heavy transportation equipment stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Cummins (NYSE:CMI) and its peers.
Applied Digital’s first quarter results were met with a significant negative market reaction, as revenue fell short of Wall Street expectations despite year-on-year growth. Management attributed the underperformance primarily to technical issues during a shift to an on-demand model in its Cloud Services segment, which temporarily limited revenue generation. CEO Wes Cummins acknowledged these setbacks, noting the company “experienced some technical hurdles as we move from a single tenant to a multi-tenant configuration.” The issues have since been resolved, but the transition period weighed on results.
QuinStreet’s first quarter results reflected robust revenue growth, with management attributing performance to strong expansion in its financial services and home services verticals, particularly auto insurance. However, the market’s negative reaction centered on caution around future client spending and potential impacts from tariffs. CEO Doug Valenti noted, “The continued strong results are due to the combination of our big market opportunities, exceptional value proposition, and strong competitive advantages,” but also acknowledged that client ramp-ups have been more measured than anticipated, partly due to external uncertainties. Management’s remarks highlighted both the company’s operational progress and the external pressures shaping its outlook.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Applied Digital (NASDAQ:APLD) and the best and worst performers in the it services & other tech industry.
The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning.
Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
PubMatic’s first quarter results reflected resilience in the face of sector headwinds, as the company’s performance was shaped by both ongoing challenges and emerging opportunities within the programmatic advertising landscape. Management emphasized that, while revenue declined year over year, core business areas such as connected TV (CTV) and supply path optimization (SPO) experienced robust growth. CEO Rajeev Goel highlighted that “excluding the affected DSP and political spend, year-over-year revenue growth accelerated to 21%,” underscoring the strength in newer media channels and data-driven offerings. The company continues to adapt to shifting advertiser preferences and industry changes, helping to offset softness in certain display segments.
EverQuote’s first quarter results were met with a significant negative market reaction, despite revenue and profits exceeding Wall Street expectations. Management attributed the quarter’s performance to strong enterprise carrier spending and ongoing investments in AI-powered traffic management, which CEO Jayme Mendal said has enabled the company to “leverage a data advantage through the use of AI throughout our traffic and distribution systems.” The company also noted that its agency operations and core auto insurance vertical saw substantial growth, supported by improved referral quality and the rollout of Smart Campaigns for carriers.
Cummins' first quarter results reflected strong operational execution within its Power Systems segment, even as overall revenue declined compared to last year. Management attributed the outperformance to robust data center and aftermarket demand, particularly in North America and China, and continued progress on new product launches. CEO Jennifer Rumsey highlighted, “We delivered very strong results in the first quarter, led by record performance in our Power Systems segment.” The company also noted improved gross margins, driven by pricing actions and operational efficiencies, which more than offset the headwinds from softening North American truck markets and the recent Atmus divestiture.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
The agreements, each spanning roughly 15 years, will enable Applied Digital to deliver 250 megawatts of critical IT power to support CoreWeave’s AI and HPC systems at its data center complex in Ellendale, North Dakota.
Large-cap stocks usually command their industries because they have the scale to drive market trends.
The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
According to TheFly, the brokerage sees structurally higher Power Systems profitability and "derisked" Environmental Protection Agency 2027 expectations.
Cummins Inc (NYSE: CMI) upgraded to Buy by Goldman Sachs analyst Jerry Revich due to higher profitability in Power Systems and expanding data center sales.
The stocks featured in this article are seeing some big returns.
Over the past month, they’ve outpaced the market due to new product launches, positive news, or even a dedicated social media following.
Engine manufacturer Cummins (NYSE:CMI) reported Q1 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 2.7% year on year to $8.17 billion. Its non-GAAP profit of $5.96 per share was 21% above analysts’ consensus estimates.
