Broadcom And 2 More Power Grid Technology Stocks With Deep Backlogs

Global markets are wrestling with stubborn inflation risks, volatile energy prices, and shifting central bank expectations, which is pushing many investors to look more closely at real world infrastructure. The power grid sits at the heart of that topic, linking AI data centers, electrified transport, and everyday homes to reliable energy. Our Power Grid Technology Stocks screener filters for profitable companies that build and equip this backbone, focusing on those already earning money from critical hardware and construction services. In this article, you will see 3 stand out stocks from that list and how each fits this demanding macro backdrop.

Bloom Energy (BE)

Overview: Bloom Energy builds and sells solid oxide fuel cell systems that sit on a customer's site and turn fuels like natural gas, biogas, or hydrogen into electricity through an electrochemical process. It also offers electrolyzers for hydrogen production, targeting power hungry sectors such as data centers, healthcare, manufacturing, and utilities.

Operations: Bloom Energy generates essentially all of its US$2.0b revenue from electric equipment, with about US$1.6b coming from the United States and roughly US$0.4b from other countries.

Market Cap: US$33.5b

For investors focused on the grid build out, Bloom Energy offers direct exposure to on site power systems that aim to address data center and critical infrastructure energy constraints, backed by a large order backlog reportedly in the US$6b to US$20b range and 2026 revenue guidance around US$3.1b to US$3.3b. The business is still loss making and carries funding, dilution, and valuation risks. Analysts have published expectations of revenue and earnings growth over the next few years, citing factors such as AI related demand and long term clean energy policies. Recent partnerships, such as a US$5b agreement with Brookfield Asset Management for data centers and entry into the Bloomberg 500 Index, highlight Bloom’s role in the evolving power grid story that many investors are only starting to study in depth.

Bloom’s large backlog and data center focus are getting attention, but many investors are skipping the full risk and reward picture hiding in the 2 key rewards and 3 important warning signs

Argan (AGX)

Overview: Argan is an engineering and construction group that designs, builds, and maintains large power plants, industrial facilities, and telecom infrastructure, covering everything from turbines and boilers to underground fiber and high voltage lines across the US, UK, and Ireland.

Operations: Argan generates most of its roughly US$944.6m revenue from Power Services at about US$756.5m, with Industrial Services at US$167.6m and Telecom Services at US$20.6m, primarily in the United States.

Market Cap: US$7.2b

Argan provides focused exposure to the build out of power and data infrastructure, supported by record sales of US$944.6m, net income of US$137.8m, and a project backlog reportedly above US$2.9b that is tied into AI data centers, grid upgrades, and energy projects. Earnings growth has recently outpaced both the broader US market and the construction sector, supported by double digit margins and a history of beating expectations. Governance metrics such as an experienced board and below peer CEO pay suggest a relatively disciplined culture. However, fixed price contracts, rising labor and material costs, and a volatile share price all raise questions about how durable those margins and earnings forecasts may be.

Argan’s record sales, solid margins, and hefty project backlog hint that the story might be shifting from cautious contractor to power infrastructure heavyweight, but the real question sits inside the 2 key rewards and 2 important warning signs

Broadcom (AVGO)

Overview: Broadcom is a large chip and software company that supplies the AI accelerators, high speed networking gear, and infrastructure software that power hyperscale data centers, private clouds, telecom networks, and industrial systems worldwide.

Operations: Broadcom generates about US$41.2b from its Semiconductor Solutions business and around US$27.1b from Infrastructure Software, giving it a sizable mix of hardware and recurring software revenue.

Market Cap: US$1,466.1b

Broadcom deserves investors’ attention because it sits at the center of AI infrastructure, with custom accelerators and Ethernet switches feeding a reported US$110b backlog tied to hyperscale customers. The VMware deal is reshaping its profile toward recurring, high margin software. The appeal is reinforced by very strong recent earnings growth, expanding profit margins at 36.6%, and high returns on equity around 31.3%. At the same time, heavy reliance on a small group of AI customers, elevated debt above US$66b, and ongoing insider selling show that execution and balance sheet discipline really matter here. The full story lies in how those growth, quality, and concentration pieces fit together for long term grid and data center investors.

Broadcom’s AI engine is roaring, but the real story is how that US$110b backlog, 36.6% margins, and 31.3% ROE stack up against customer concentration and US$66b in debt in the 4 key rewards and 2 important warning signs

The three stocks covered here are only a starting point. The full Power Grid Technology Stocks screener surfaces 23 more companies with equally compelling grid upgrade stories that could matter for long term portfolios. Use Simply Wall St to identify, filter, and analyze the specific catalysts and narratives that matter to you so you can focus on the highest conviction power grid opportunities.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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