Investors have been rewarding more than just tech companies for potential benefits from growing artificial intelligence (AI) infrastructure. Suppliers of the computer hardware, software, and connectivity equipment are obvious beneficiaries. Power and energy suppliers to data centers are also along for the ride.
This week, Nucor (NUE +0.21%) reminded investors that, as the leading steel and steel products company, it will also benefit from the boom in data center construction. Nucor reported strong Q3 results this week, helping shares jump nearly 9% for the week, according to data provided by S&P Global Market Intelligence.
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Supplying high-growth markets
Nucor exceeded estimates in the third quarter as it ramped up production from new growth investments. Shipments exceeded estimates from both its steel mills and steel products divisions. Net income of $603 million was about 140% higher than the comparable period last year.
NYSE: NUE
Key Data Points
Investors undoubtedly liked the results, but Nucor's future prospects also helped the stock jump this week. Nucor CEO Leon Topalian highlighted the company's ties to the high-growth data center market. He noted skyrocketing data center construction applications and stressed that Nucor has a hand in filling the centers, not just building them.
Nucor's data systems business supplies materials for the production of AI server cabinets and support structures. With some new growth investments nearing completion and others on schedule to begin production late next year, Nucor's long-term growth potential still looks good.
