A trading opportunity is emerging in this AI infrastructure play, charts show

CNBC Top News ·

A trading opportunity is emerging in this AI infrastructure play, charts show

Over the past few weeks, we have focused on companies powering the next great infrastructure boom. First, it was Generac , which sits at the intersection of power reliability and the explosive energy …

Over the past few weeks, we have focused on companies powering the next great infrastructure boom. First, it was Generac , which sits at the intersection of power reliability and the explosive energy needs created by artificial intelligence data centers. Then it was Caterpillar , whose heavy machinery and record backlog highlighted the physical demands of rebuilding America's infrastructure. Technically, both charts were great risk/reward plays. Caterpillar's chart stretched beautifully from the bottom left to the top right of the page — your classic uptrend. Generac is a textbook reversal from a long consolidating base with much upside to get back to old highs. Both setups treated us well, so why not swim in those waters again? As I look for themes over the second half of the year, nothing is changing my mind on the continued build and infrastructure story. Again, as we turn to the charts and search for great risk/reward setups, I keep coming back to midcap industrial growth. These companies may not grab the same headlines as the mega-cap AI names, but they are becoming critical players in the picks-and-shovels trade and are technically sound as well. This week's search brings us to MasTec . It's a key builder of transmission lines, electrical grids, fiber networks, and energy infrastructure. …

Original source: CNBC Top News

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AI · CNBC · United States · Caterpillar