By Paul R. La Monica

The artificial-intelligence stock boom is no longer confined to semiconductor stocks, hyperscalers and data centers. "Old" economy industrial companies focusing on energy, cooling and construction equipment are getting an AI boost as well.

Take a look at Atlas Energy Solutions. The company develops private power grid systems and also runs a 42-mile-long electric conveyor belt that brings fracking sand from Texas to New Mexico. It also benefits from AI demand. Atlas announced a deal in March to buy $840 million in power-generation equipment from Caterpillar to meet increased demand for energy related to AI.

"The build-out of AI infrastructure and manufacturing reshoring are driving unprecedented power demand growth, and grid limitations are pushing industrial customers to seek alternative power solutions through private grid systems," said Atlas Energy CEO John Turner in a news release about the Caterpillar deal in March.

Analysts at Citi are bullish on Atlas as an AI play, saying in a report Monday, "We see a growth path for their power business that is bigger...than we originally envisaged." The Citi analysts reiterated their Buy target on the stock, even though it has already more than doubled this year.

Caterpillar has also gotten a big AI lift because of its power business. Shares are up nearly 60% this year, making the heavy equipment maker the best performing stock in the Dow Jones Industrial Average this year.

"AI is not just about tech. It's about industrial companies as well. You have to look at where the capital expenditures are going. Caterpillar now is an AI play," said Harold "Jay" Bowen III, president and chief investment officer of Bowen, Hanes & Co., which runs a Florida pension fund for firefighters and police officers and has a position in Caterpillar.

Bowen told Barron's that several other industrial stocks that his firm owns have also emerged as stealthy AI stocks, such as electrical component supplier Eaton and motion and control sytems manufacturer Parker-Hannifin. He said these are firms that are "right at the heart of industrialization that are disguised as technology companies."

These stocks aren't necessarily cheap though. Wall Street is starting to catch on to the fact that they are an important part of the AI narrative. Caterpillar trades at nearly 38 times earnings estimates for this year while Eaton's forward price-to-earnings ratio is 31.

But strategists at 22V Research argue that the industrial AI winners have more room to run. They wrote in a report Monday that AI is a "once in several generations productivity tool." And that makes it "very difficult" to bet against them.

"The stocks that benefit the most from the AI buildout are still longs," they added, despite the fact that returns have been "extraordinary." The 22V strategists pointed specifically to companies involved in liquid cooling, which is essential for AI data centers.

The strategists cited Eaton as one of the stocks that is part of this trend. And they also pointed to HVAC companies Carrier, Johnson Controls and Trane as potential winners. The 22V strategists added that recent initial public offering Madison Air, which began trading last month, still looks attractive as well.

Madison Air's stock is up more than 50% from its IPO price and Wall Street is still bullish. Several analysts launched coverage on the stock with Buy ratings on Monday. So as the AI trade continues to broaden out beyond tech to the industrial sector, investors should be able to find more winners.

Write to Paul R. La Monica at paul.lamonica@barrons.com

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May 11, 2026 13:17 ET (17:17 GMT)

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