A shift in investor thinking has been hitting the “Magnificent Seven” big tech stocks recently, as investors wonder whether they are overspending on artificial intelligence (AI) infrastructure buildouts. Some of that money is flowing into names that will benefit from all the heavy tech company spending. That includes power providers, data center owners, and HVAC service providers, including installation and maintenance.
Argan (NYSE: AGX) is one of those names benefiting from the rapid growth in AI. Shares of the industrial company soared 16.4% this week, according to data provided by S&P Global Market Intelligence.
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Argan offers engineering, construction, and associated commissioning, maintenance, and consulting services to the power and industrial construction industries. The demand for its services has surged as data centers are being rapidly built, driving increased power requirements.
While revenue for the first nine months of 2025 rose 6.4% year over year to about $682 million, the company reported a record backlog of $3 billion. Some investors have been tracking its growing business, and the stock has soared 177% in the last year.
For investors who think it may be too late to harvest more gains, they may be right, at least for another year or so. Argan’s forward price-to-earnings (P/E) ratio is now about 43, double its three-year average. Investors should keep it on their radar, however, as companies assess how much return they can get from the massive data center growth. If returns on those investments are substantial, tech companies will need plenty more help with what Argan provides.
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