Data Center Frenzy Propels Commodity and Industrial Stocks to New Peaks

The artificial intelligence revolution has transcended pure-play tech stocks to catalyze a broad-based rally in global markets, setting the stage for the S&P 500 to hit record highs and powering industrial giants to new strengths. Amidst a complex landscape of stronger-than-expected earnings and shockingly weak jobs data, investors are pivoting towards growth narratives rather than safe havens; this dynamic brings five stocks nearing critical buy points across a spectrum ranging from steel to copper into the spotlight.

From Steel to Copper: The New Wave of Industrial Giants

The construction of AI data centers and the surge in infrastructure spending have exploded demand for raw materials, allowing sector leaders like Nucor and Freeport McMoRan to capitalize on this wave.

■Nucor (NUE): The steel producer is expected to see earnings per share soar by 133% for the full year, breaking out from a cup base with a 270.90 buy point. Supported by Trump tariffs and infrastructure spending, the stock has rallied more than 66% year to date.

■Freeport McMoRan (FCX): The copper producer surged 11% for the week as copper prices hit $6.70 per pound, driven by Congo's export ban and draining global inventories. The stock is now just 4% below its 72.28 buy point after recovering the 10-week line.

Picks and Shovels Strategy: ASML and Quanta's Ascent

Companies building the physical backbone of the AI ecosystem, specifically in equipment and construction, are offering early entry opportunities as technical indicators strengthen.

■Quanta Services (PWR): As a primary "picks and shovels" beneficiary of the data center boom, the engineering and construction firm reported a staggering 71% increase in EPS. While eyeing a 788.75 buy point, a move above 708.06 offers an early entry for investors looking to capitalize on its 35% projected revenue growth.

■ASML Holding (ASML): Holding a monopoly on extreme ultraviolet (EUV) lithography systems, the chip equipment maker has flourished with a 59% gain in 2026 so far. A decisive move above the 50-day moving average could signal a new entry point, supported by a forecasted 47% EPS gain for the full year.

Consumer Power and Market Dynamics: Ralph Lauren

Alongside industrials, Ralph Lauren (RL) is standing out in the retail sector with robust performance, driven by a solid balance sheet and surging sales in China.

■Ralph Lauren (RL): The designer apparel stock moved back above its 10-week line after earnings grew 22%, bringing it within 5% of its 421.60 buy point. The company’s ability to grow revenue by 14% in a tough retail environment, alongside projections for a fourth consecutive year of above 20% earnings growth, underpins its superior investment rating.

Global capital flows are currently signaling a shift to "risk-on" mode, but this transition is not limited to classic tech stocks. The movement we see in Nucor and Freeport McMoRan reflects the massive demand for "real assets" driven by the AI boom. Investors are allocating capital to steel, copper, and engineering companies that build the infrastructure behind digital assets, creating a synthesis of growth and protection against inflationary pressures. However, the market's record-breaking rally despite weak employment data serves as a warning that volatility risks may not be fully priced in just yet.