Every day the market is open I have a routine that includes looking at tens of different data points, news providers, and charts.
One of the data sets I always come back to is a list of stocks breaking out to new highs.
This list gives me a clear look at what’s really happening beneath the surface of the major indices. And over time, you start to see patterns form.
Not in a day. Not even in a week.
But over months.
That’s when entire sectors quietly begin to move - often before the headlines catch up.
And one trend I spotted a few months ago that remains firmly intact today is the breakout in the “picks and shovels” companies powering the AI megatrend.
The Capital Wave Behind the Move
Before we even get to the names… it’s important to understand why this is happening right now.
Because the biggest companies in the world are spending at levels we’ve never seen before.
The hyperscalers - the companies building out AI infrastructure - are ramping capital expenditures at an unprecedented pace. Recent estimates show that total spending from this group is on track to reach $725 billion by 2026.
Think about that for a second.
This isn’t incremental growth. It’s a tidal wave of capital being deployed into data centers, power systems, cooling, transmission, and physical infrastructure.
And none of that money goes to software alone. It flows directly into the companies that build, power, and maintain the system.
That’s exactly why we’re seeing this breakout.
The Names Quietly Leading
Today is a perfect example.
Let’s take a look at some of the names hitting new highs…
WESCO International $WCC ( ▲ 15.18% ) – A leading distributor of electrical and communications products, WESCO sits right in the middle of the supply chain - providing the critical components needed to build data centers, power systems, and industrial infrastructure.
Quanta Services $PWR ( ▲ 14.49% ) – Quanta is one of the most important companies you’ve probably never heard of - designing and building the transmission lines and grid infrastructure required to actually deliver electricity where it’s needed.
Sterling Infrastructure $STRL ( ▲ 10.16% ) – Sterling is leveraged to large-scale infrastructure projects, including site development for data centers and energy facilities - quietly benefiting from the physical expansion of the AI economy.
TeraWulf $WULF ( ▲ 9.14% ) – At first glance a crypto name, but in reality, a power-intensive data infrastructure play, TeraWulf is tapping into the same massive electricity demand driving AI and high-performance computing.
Powell Industries $POWL ( ▲ 8.04% ) – A key supplier of switchgear and electrical control systems, Powell is directly exposed to one of the tightest bottlenecks in the market - equipment needed to safely distribute and manage power.
MYR Group $MYRG ( ▲ 20.12% ) - MYR specializes in building and maintaining electrical transmission and distribution systems - meaning it benefits every time utilities are forced to upgrade and expand the grid.
Trane Technologies $TT ( ▲ 4.07% ) – Trane plays a critical role in cooling - an often overlooked but essential piece of the AI puzzle - as data centers require massive, energy-efficient climate control systems to operate at scale.
These are not the companies dominating headlines.
You won’t see them leading the nightly news.
But they are quietly outperforming the market - and more importantly, they are enabling the entire AI megatrend to function.
What Most Investors Are Missing
AI doesn’t run on code alone.
It runs on electricity.
It runs on infrastructure.
It runs on the physical world.
And the companies building that foundation are where capital is starting to flow.
If you’re not positioned in the picks and shovels of the biggest investment trend of a generation, you’re not just early—you’re behind.
I recently put together a video where I break down six of my favorite picks-and-shovels opportunities right now - including names most investors still haven’t discovered.
It’s worth your time. Because this trend isn’t slowing down—it’s just getting started.
Watch the full presentation here.
Here’s to the future,
Matt McCall
Founder, NXT Wave Research
