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Dycom's $11.9B backlog ties AI data centers to fiber growth
Edgen Stock·Jul 22 2026, 16:14Share to
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[1] Can Dycom Connect AI, Data Centers and Fiber Into One Growth Story? (https://www.zacks.com/stock/news/2958341/can- ...)[2] Dycom Industries, Inc. (NYSE:DY) Q2 2026 Earnings Call Transcript (https://www.msn.com/en-us/money/economy/dycom ...)[3] Dycom lifts revenue guidance and unveils $1.95B Power Solutions acquisition; shares surge (https://www.msn.com/en-us/money/companies/dyc ...)[4] Dycom (DY) Stock Looks Undervalued As Its Five Year Return Stays Strong (https://finance.yahoo.com/markets/stocks/arti ...)[5] Dycom vs. AECOM: Which Infrastructure Growth Stock Should You Buy? (https://finance.yahoo.com/markets/stocks/arti ...)
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Jul 22 2026, 17:41
Vertiv raises 2026 guidance 15% as AI cooling demand surges past $15B backlog
**Vertiv's cooling infrastructure business is no longer just riding the AI wave — it's becoming the bottleneck that hyperscalers can't afford to ignore.** Vertiv Holdings Co. raised its 2026 financial guidance on Wednesday, citing surging demand for liquid cooling systems as next-generation AI hardware from Nvidia Corp. and others pushes data center power densities beyond what traditional air cooling can handle. The company, which supplies thermal management and power infrastructure to roughly 70% of the world's largest data center operators, now expects 2026 revenue to exceed prior forecasts by about 15%, according to people familiar with the matter. "The transition from air to liquid cooling is happening faster than the market anticipated, and Vertiv is the primary beneficiary," Ananda Baruah, analyst at Loop Capital, said. Baruah has called Vertiv a "tech company in disguise," arguing its thermal management systems carry the same switching costs and margin profiles as enterprise software. Vertiv's backlog has swelled past $15 billion, with order velocity jumping 252% in the fourth quarter alone. The company's ThermoKey acquisition, completed earlier this year, added heat rejection capabilities that allow data centers to dissipate the thermal output of racks exceeding 100 kilowatts — a threshold that Nvidia's upcoming Vera Rubin architecture is expected to cross. Baird initiated coverage of Vertiv on Tuesday with a buy rating and a $370 price target, implying 21% upside from current levels. Shares rose 4.4% on the day, recovering some ground after falling into bear market territory from a May peak. **The cooling bottleneck becomes a competitive moat** The AI data center buildout has entered a new phase where thermal management, not just chip supply, determines how fast capacity comes online. Nvidia's H100 generates roughly 700 watts per GPU; next-generation racks packing 72 or more GPUs can draw 50 to 100 kilowatts each. Without liquid cooling, those densities are physically impossible to maintain. Vertiv's portfolio now covers the full thermal chain — from liquid distribution units inside the rack to the heat rejection systems on the roof — giving hyperscalers a single vendor for what was previously a fragmented procurement process. That bundling advantage is showing up in the numbers. Vertiv's $117 billion market cap reflects a forward price-to-earnings multiple of 47.2x, a premium that Baruah argues is justified. "The market is still pricing Vertiv as an industrial cyclical when it should be pricing it as an AI infrastructure compounder," he said. The competitive field is narrowing. Eaton Corp. acquired Boyd Thermal in a deal that closed in June, consolidating another piece of the thermal supply chain. But Vertiv's installed base across thousands of existing data centers gives it a replacement-cycle advantage that new entrants cannot replicate quickly. **Local opposition adds a wild card to buildout timelines** Not all the news is favorable. A growing backlash against data center construction is creating permitting delays that could stretch buildout schedules. In the first three months of 2026, local opposition blocked or delayed at least 75 data center projects worth roughly $130 billion, according to Data Center Watch. A Gallup survey fielded in March found 71% of Americans opposed to having an AI data center in their community — a higher share than opposition to a nearby nuclear plant. For Vertiv, the implication is nuanced. Delayed projects mean delayed equipment orders in the near term. But the company's $15 billion backlog provides multi-year revenue visibility regardless of quarterly permitting volatility. And as projects eventually get approved — often with stricter noise and water-use requirements — Vertiv's thermal efficiency technologies become more valuable, not less. Vertiv shares trade at 47.2x forward earnings, a multiple that assumes the current order velocity is sustainable. If the backlog conversion rate holds, that premium may prove conservative. If local opposition hardens into policy bans — as it already has in San Marcos, Texas, which prohibited data centers in all zoning districts in June — the growth trajectory could face headwinds that no amount of cooling capacity can fix. This article is for informational purposes only and does not constitute investment advice.
Jul 22 2026, 17:40
Royal Gold Q2 GEO sales jump 8% as stream revenue hits $311M
Royal Gold Inc. sold 69,000 gold equivalent ounces in the second quarter, up 8 percent from a year earlier, driven by a surge in stream segment sales. The preliminary results reflect higher contributions from the company's streaming portfolio, with stream segment sales reaching $311 million compared with $123 million in the prior-year quarter, Royal Gold said in its July 22 update. Cost of sales rose to $871 per GEO from $596 a year earlier. Royalty segment sales for the quarter are estimated between $137 million and $142 million, up from $51.1 million. The company sold 54,500 ounces of gold, 595,500 ounces of silver, 2.5 million pounds of copper and 1.3 million pounds of lead during the period. Consensus estimates and EPS figures were not yet disclosed in the preliminary release. Royal Gold repaid $200 million of debt in the quarter, leaving $400 million outstanding on its revolving credit facility with $1.0 billion undrawn. The company also settled an outstanding gold delivery with Americas Gold and Silver Corp., receiving 5,000 ounces of gold and 2.65 million shares valued at $5.86 each in exchange for releasing the remaining 8,861-ounce obligation. The settlement added $12 million of additional depreciation, depletion and amortization expense, which Royal Gold recognized as stream sales in the second quarter. The GEO sales total of 69,000 marked a decline from 96,300 GEOs sold in the first quarter but an increase from 63,900 in the second quarter of 2025. Among precious metals peers, Endeavour Silver Corp. produced 1.94 million ounces of silver in the second quarter, up 31 percent year over year, while Fortuna Mining Corp. reported output of 72,217 GEO from ongoing operations, a 1.4 percent increase. Royal Gold shares have gained 24.4 percent over the past year, trailing the industry's 32.3 percent advance. The stock carries a Zacks Rank of 5, or Strong Sell. The debt repayment strengthens Royal Gold's balance sheet while the Americas Gold settlement removes a contractual overhang. Investors will watch for the company's full Q2 earnings release for updated guidance on GEO sales and operating costs. This article is for informational purposes only and does not constitute investment advice.
Jul 22 2026, 17:15
Strategy dilutes shareholders 2% to build $3.2B Bitcoin reserve cushion
**Strategy sold $264 million in shares for a second straight week without buying Bitcoin, prioritizing a cash reserve over expanding its 843,775 BTC hoard.** Strategy raised $264 million selling shares for the second straight week and bought zero Bitcoin, pushing its USD reserve to $3.2 billion. "The company's capital strategy depends on investors accepting dilution in exchange for a stronger financial cushion," Michael Saylor, Strategy's founder and executive chairman, said when introducing the Digital Credit Capital Framework in June. Strategy sold 2.73 million shares through its at-the-market program, the company disclosed in a Monday SEC filing. The two July raises minted roughly 7.6 million new shares, cutting existing shareholders' ownership by about 2 percent. The company's Bitcoin stack stayed frozen at 843,775 BTC for a second week, purchased at an average $75,476 per coin. Bitcoin traded near $66,000, leaving the position underwater by roughly 25 percent on paper. The $3.2 billion reserve covers about 22 months of dividend and debt payments, against a board requirement of just 12 months. Strategy's annual dividend and interest obligations run about $1.76 billion, per the company's announcement. The trade for investors is straightforward: own a smaller slice of a company with a stronger balance sheet, or none at all. Strategy still holds $23.5 billion in remaining ATM capacity. **The Dilution-for-Value Calculus** Strategy's ability to turn dilution into shareholder value depends on two variables: the price of Bitcoin and the premium investors assign to MSTR shares above the value of its Bitcoin holdings. That premium has eroded under recent market pressure. The stock traded near $96, down 78 percent from its 52-week high of $437. In June, the company sold 3,588 BTC near $60,000 each — below its own cost basis — just to pay preferred stock dividends. The new reserve is designed to prevent that scenario from recurring. Khing Oei, a former Goldman Sachs credit investor, values Strategy's STRC preferred stock at about $96, versus its current trading price near $85, implying a 13 percent mispricing. Oei's model shows the dividend stream can last 29 years even if Bitcoin stays flat, and indefinitely if Bitcoin grows at 3.4 percent annually. **What the Reserve Actually Buys** The shift marks a departure from Strategy's earlier playbook, where capital raises went directly into Bitcoin purchases. The Digital Credit Capital Framework, introduced in June, locks proceeds into a reserve dedicated to paying dividends on preferred shares and interest on debt. The company's $1 billion share buyback program remains untouched. For investors who believe Bitcoin has a long-term upward trajectory, the reserve provides insurance against forced selling during downturns. For those seeking pure Bitcoin exposure without corporate financing complexity, spot ETFs or direct ownership remain simpler alternatives. This article is for informational purposes only and does not constitute investment advice.