Prim stock | AI play

 Updated 12/19/2025 12:59 PM ET

There are more ways to play the artificial intelligence space than buying Nvidia (NVDA) or Micron Technology (MU). Indeed, Primoris Services (PRIM) is a stealth AI stock that is eyeing a fresh entry amid robust earnings growth.

The Dallas-based company provides maintenance services for power plants and refineries. While it is an engineering and construction firm, it is considered an AI play because it builds specialized high-voltage substations and transmission lines needed to power AI data centers. It competes with fellow highflier Quanta Services (PWR) in the space.

Primoris is a strong all-around performer, which is reflected in its IBD Composite Rating of 97 out of 99.

The company operates across two segments: utilities and energy. The utilities segment installs and maintains new and existing natural gas and electric distribution and transmission systems. It builds substations and fiber-optic networks that enable AI data centers.

The energy segment's activities are broad in scope and include engineering, construction, retrofits, bridge construction, demolition, pipeline construction, and site work.

Primoris stock is potent from a fundamental perspective, with its Earnings Per Share Rating sitting at a near top-shelf 98. Per-share earnings have risen an average of 75% over the past three quarters, easily surpassing the 25% growth level sought by disciples of The IBD Methodology.

However, it's worth noting that growth is expected to slow going forward. Analysts expect full-year earnings to rise 42% this year, then rise by 7% in 2026.

Primoris Services Stock Analysis

Primoris Services' stock has formed a consolidation with an ideal buy point of 146.16, according to MarketSurge analysis.

This is a second-stage pattern, which is a bonus. IBD research has found that such early-stage bases are more likely to net good returns for investors.

However, one immediate challenge for the stock will be reclaiming its 50-day moving average. This has been an area of resistance in recent sessions, so moving back above the level will be a good sign for bulls.

The relative strength line has been moving sideways of late. It is also off recent highs. A sharp upward spike would help drive a breakout.

The AI stock has made good progress so far in 2025, rallying nearly 63%. It's up slightly for the month.

Institutions have been net sellers of the stock of late, with its Accumulation/Distribution Rating coming in at D+. However, 61% of shares are currently held by funds, a high level of ownership. The highly rated Invesco Discovery Fund (OPOCX) is among the stock's notable backers.

Analysts Rate AI Stock

Wall Street analysts are currently bullish on the equity. It holds a consensus rating of buy with an average price target of 152.27, according to TipRanks.

UBS Analyst Steven Fisher is even more bullish, rating the AI stock as a buy with a 158 price target. Primoris' most recent earnings report will have "mostly satisfied" investors, Fisher said in a Nov. 3 note to clients.

"Overall, while some of the metrics were mixed, we think the bull case remains intact," he said. "Growing power demand will drive energy backlog higher via both gas-fired plants and pipelines, while renewables steadies. At the same time, T&D (Transmission and Distribution) work and fiber demand will drive Utilities."

Transmission and distribution refers to the building, engineering, and maintenance of towers, poles, underground wires, and substations. The latter is particularly important for AI data centers.

Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.

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