Shares of AI infrastructure companies have faced a significant correction over the past week, following a period of rapid growth. This comes amid rising geopolitical tensions, particularly the recent escalation of the Iran War, which has introduced uncertainty into the broader markets. Oil prices have surged past $90 a barrel as traders react to potential disruptions, prompting many investors to reevaluate their portfolios. With stocks selling off, value investors may find attractive opportunities in this current climate.
The sell-off has particularly affected companies involved in AI infrastructure, which had posted strong earnings in the fourth quarter and have optimistic projections for 2026. This sector, which includes firms constructing data centers and providing essential components for AI technology, is witnessing heightened spending. Hyperscalers are expected to invest over $500 billion this year to build the necessary infrastructure for AI applications, positioning these companies as significant beneficiaries.
Despite the recent declines, many AI infrastructure stocks were trading at five-year highs before the correction, and valuations were considered stretched. The current dip has led to more attractive pricing for several companies, though it is essential to note that none of these stocks are perceived as “cheap.” Value investors are advised to assess whether the recent price reductions present a buying opportunity.
The AI Infrastructure Companies on Sale
Among the companies that warrant attention are Everus Construction Group, Sterling Infrastructure, and Flowserve Corp. Everus, involved in electrical and communication infrastructure, has seen its shares fall 9.1% over the past five days, bringing its forward price-to-earnings (P/E) ratio to 27. Despite this decline, the stock remains up 178% over the last year, and earnings are expected to grow by 5.3% in 2026, with a further 7% increase anticipated in 2027.
Sterling Infrastructure, which focuses on development services for e-commerce warehouses and data centers, has also experienced a pullback, with shares down 9.4% in the last week. The stock currently trades in the $300s and has gained 225% over the past year. With projected earnings growth of 25.8% in 2026 and an additional 15% in 2027, Sterling’s forward P/E ratio stands at 29, making it a candidate for value investment consideration.
Flowserve Corp., a provider of flow control solutions, has seen its shares decline by 12.4% in the last five sessions, despite being up 56% over the past year. Flowserve’s forward P/E ratio has dropped to 19.8, making it the cheapest among the three stocks discussed. The company anticipates earnings growth of 12.9% in 2026 and 13.6% in 2027, alongside a recent 5% increase in its dividend, which currently yields 1%.
These three companies exemplify the potential for value investing within the AI infrastructure sector. As uncertainty looms in the markets, the current environment may provide savvy investors the chance to acquire quality stocks at discounted prices. With continued investment in AI infrastructure expected, these firms may very well play pivotal roles in the industry’s evolution.
For further insights into these opportunities and the broader market context, listeners are encouraged to tune into this week’s Value Investor Podcast hosted by Tracey Ryniec, where she discusses stock picks and investment strategies amid current market conditions. Ryniec also holds shares in Sterling Infrastructure as part of her portfolio, further underscoring her confidence in the company’s potential for future growth.
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