Recent market fluctuations have seen shares of AI infrastructure companies experience notable declines, despite having previously reached five-year highs. The downturn follows a surge in oil prices, which have surpassed $90 a barrel amid escalating geopolitical tensions related to the Iran War, prompting investors to reassess their strategies.
Companies such as Everus Construction Group, Sterling Infrastructure, and Flowserve Corp. are under scrutiny as their stock values have dropped significantly. Everus's shares fell by 9.1% in the last week, though the stock has appreciated 178% over the past year, with anticipated earnings growth of 5.3% in 2026. Sterling Infrastructure saw a 9.4% decline recently, yet it has gained 225% in the last year, with projected earnings growth of 25.8% in 2026.
Flowserve Corp. experienced a larger decline of 12.4% in its share prices. Despite these recent corrections, analysts suggest that the current pricing might offer potential opportunities for value investors, as none of the stocks are categorized as "cheap." The sector remains poised for continued investment, with hyperscalers expected to allocate over $500 billion this year towards building AI infrastructure.