O’Connell said EnerSys has expanded well beyond its roots as a lead-acid battery manufacturer and now offers “a full technology stack,” including batteries (with nine lithium chemistries), power electronics, software to manage and aggregate systems, and an in-house service organization staffed by EnerSys employees rather than subcontractors. He said the company avoids electric vehicle markets and broad commercial and industrial markets, instead focusing on segments where it can “application stack” and lever ...

Core Viewpoint - The technology sector, particularly mega-cap tech companies, is expected to lead the market in 2026, driven by significant capital expenditure (capex) in data center infrastructure and AI advancements [1][3]. Technology Sector Insights - The semiconductor companies, especially those involved in AI, are anticipated to be at the forefront of this trend, with ongoing investments in data center infrastructure [2][4]. - The focus is shifting towards the entire supply chain of infrastructure buildout, which includes power generation, management, cooling, and connectivity, rather than solely on chip makers [4][5]. Investment Opportunities - Companies like NextEra, Broadcom, and Eaton are highlighted as key players in the infrastructure buildout, with Eaton being particularly noted for its role in power management for data centers [6][7][10]. - Eaton's competitive positioning is strengthened by its partnerships with chipmakers like Nvidia, which enhances the design and management of data center infrastructure [10]. Market Dynamics - Nvidia remains a significant player in the AI chip market, but there is a growing conviction in other companies like Broadcom as secondary beneficiaries of the AI trend [11][12]. - Meta is expected to surprise positively in its upcoming earnings report due to its heavy investments in data infrastructure, despite being perceived as underperforming recently [14].