Bull of the Day: Sterling Infrastructure, Inc. (STRL)

AI data center infrastructure stock Sterling Infrastructure, Inc. STRL soared 1,700% in the last five years, outpacing artificial intelligence powerhouse Nvidia’s 1,340% and blowing away the rest of the Magnificent 7.

The U.S. infrastructure company, which specializes in site development and mission-critical electrical services, is riding massive growth trends across the AI data center boom, tech-focused reshoring such as semiconductor fabrication, e-commerce distribution expansion, and beyond.

Sterling Infrastructure is positioned to benefit from these critical megatrends, which are driving the U.S. economy, for years to come. STRL more than quadrupled its earnings between 2020 and 2025 and doubled its revenue.

The AI data center infrastructure company posted an impressive beat-and-raise Q4 report in late February that helps Sterling Infrastructure land a Zacks Rank #1 (Strong Buy).

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STRL is projected to grow its revenue and earnings by 25% in 2026. Plus, STRL stock found some support at some key technical ranges recently after its post-earnings pullback.

All in, investors looking for an infrastructure stock that provides long-term upside exposure to AI data centers, reshoring, e-commerce, and other critical economic trends should consider buying Sterling Infrastructure now.

Buy AI Data Center Infrastructure Stock STRL Now and Hold

Sterling, which traces its roots to the 1950s, is a leader in large-scale site development and mission-critical electrical services for data centers and beyond.

STRL began pivoting its business to become the higher-margin, growth-heavy firm it is today roughly a decade ago. The company was able to looked ahead and see the massive growth pipeline across e-commerce, data centers, and more.

The infrastructure company doubled its sales between 2020 ($1.23 billion) and 2025 ($2.49 billion), including 18% YoY growth in 2025.

Sterling grew its GAAP earnings per share (EPS) by 525% between 2020 and 2025, soaring from $1.50 a share to $9.38 last year.

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STRL operates across three core segments: E-Infrastructure, Transportation, and Building Solutions.

E-Infrastructure is by far its largest revenue contributor (59% in 2025, 69% in Q4) and driver, with sales up 59% YoY in 2025. Sterling completed its acquisition of leading specialty electrical and mechanical contractor CEC Facilities Group in September 2025 to “significantly expand” its E-Infrastructure capabilities.

This growth also makes sense considering that Sterling operates essential large-scale site development and services and mission-critical electrical services for AI data centers, semiconductor fabrication, manufacturing, e-commerce distribution centers, power generation, and more.

These five areas—AI data centers, semiconductor fabrication, manufacturing, e-commerce distribution centers, and power generation—could arguably become the growth engines of the entire U.S. economy.

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The AI capex boom is heating up in 2026, driven by Nvidia NVDA, the AI hyperscalers, and more, as everyone races not to get left behind in the AI arms race.

The U.S. is reshoring critical industries such as semiconductor manufacturing, with heavyweights Taiwan Semi and Micron actively expanding their fabrication bases in the U.S.

The power-hungry AI data center boom, the broader electrification push, and years of underinvestment are leading to once-in-a-generation growth of the energy sector from nuclear power to grid expansion.

Meanwhile, Sterling’s Transportation Solutions, as the name suggests, is focused on highways, bridges, airports, rail, and more. Its Building Solutions segment is centered around concrete foundations for homes, parking structures, and commercial buildings.

The "Strong Buy" Stock’s Growth Outlook

The firm posted another solid beat-and-raise performance when it reported its Q4 results on February 25, offering robust 2026 guidance that helped Sterling earn its Zacks Rank #1 (Strong Buy).

Sterling ended 2025 with a signed backlog of $3.0 billion, which grew 78% from year-end 2024 (and 49% on a same-store basis). STRL said that its “signed backlog, unsigned awards, and future phase opportunities give us visibility into a pool of work approaching $4.5 billion.”

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This backdrop is why its FY26 earnings estimate jumped another 15%, with its FY27 outlook 5% higher, extending its impressive run of upward EPS revisions.

Sterling is projected to grow its revenue by 25% in 2026 and another 9% in 2027 to reach $3.38 billion. Meanwhile, it is expected to expand its adjusted EPS by 26% and 15%, respectively.

More Reasons to Buy AI Data Center Infrastructure Stock STRL

STRL has skyrocketed ~1,700% in the past five years to blow away its highly-ranked industry’s 140%, the S&P 500’s 75%, and even outclimb Nvidia’s 1,340%. This is part of a much larger surge over the past 10 and 25 years.

Sterling stock has surged 260% in the past 12 months. Yet, its recent pullback after its earnings report has it trading 8% below its peaks.

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Valuation-wise, STRL trade 22% below its recent highs at 31.1X forward 12-month earnings.

The stock found support at its 50-day and its longer-term 10-week moving averages in the first week of March.

Sterling's recent jump has it on the cusp of possibly breaking out to its all-time highs and then into a new trading range.

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

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This article originally published on Zacks Investment Research (zacks.com).

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