Why Powell Industries Rallied Today
Shares of Powell Industries (NASDAQ: POWL) rallied on Tuesday, up as much as 15.6% on the day, before settling into an 11.1% gain by 1:47 p.m. EDT.
Powell produces a wide variety of power and electric generation and management systems for industrial sites, and has traditionally focused on the oil & gas and chemical markets. However, the AI data center build-out now requires sophisticated, high-power systems, which Powell specializes in.
The massive step-up in AI-related demand was evident in last night's earnings release and call, in which Powell disclosed that the company had received a "mega order" that was not only its largest in history, but also larger than last quarter's entire revenue by a fair amount.
Source Fool.com
