They’re all customers of the same little-known company.

A company most investors have never heard of. A company trading for a fraction of what the big AI names command. Yet a company that’s absolutely essential to making AI work.

I can’t name it in this email (compliance reasons), but I can tell you this:

Without companies like this one, the AI revolution stops dead in its tracks. They provide the high-speed connectivity that links AI superclusters together. Remove them, and even the most powerful AI chips become useless.

That’s why the smart money isn’t just buying Nvidia. They’re buying the entire ecosystem.

Our latest report reveals 3 of these “hidden” AI plays:

• Mystery Stock #1: Just settled a patent dispute that was holding back its stock – now clearing the way for massive new customer wins
• Mystery Stock #2: Launching a new platform targeting $1 billion in sales by 2028 – already seeing 217% revenue growth
• Mystery Stock #3: Works behind the scenes with 5 of the world’s largest tech companies – profit margins improving from 9% to 23%

Each of these stocks is flying under the radar while delivering the fundamental building blocks of AI.

The question is: Do you want to know their names?

Click here to get your free copy of this report

Some opportunities hide in plain sight. These three are hidden in the AI supply chain.

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Just For You

Generac Stock Rallies: Why AI Matters More Than Earnings

Submitted by Jeffrey Neal Johnson. Article Posted: 2/13/2026. 

At a Glance

• Generac is successfully pivoting its business model to become a primary supplier of backup power solutions for hyperscale data centers, driving the artificial intelligence boom.
• Management issued optimistic forward guidance that projects significant revenue growth in the commercial and industrial segment for the upcoming fiscal year.
• The company is aggressively expanding its manufacturing capacity and has secured a robust order backlog to meet the surging demand for critical infrastructure power.

On Feb. 12, 2026, Wall Street witnessed a classic market paradox. Shares of Generac Holdings Inc. (NYSE: GNRC) jumped roughly 18% to trade near $214.84 — immediately after the company released its fourth-quarter earnings report, which missed analyst expectations on both the top and bottom lines.

At first glance that seems counterintuitive. The company reported revenue of $1.09 billion (below the $1.16 billion estimate) and adjusted earnings of $1.61 per share (below the $1.81 forecast). Yet Generac shares pushed to new 52-week highs.

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The explanation is the gap between backward-looking results and forward-looking potential. Investors largely discounted the soft late-2025 results as temporary weather noise and instead bought into the company’s bullish 2026 guidance. The market is effectively betting that Generac is shifting from a weather-driven business into a critical infrastructure partner for the artificial intelligence (AI) era.

The AI Power Pivot: Data Centers Demand Energy

The primary catalyst for the rally was projected growth in Generac’s Commercial & Industrial (C&I) segment. Management guided to roughly 30% C&I growth in 2026 — a sharp acceleration driven largely by hyperscale data-center demand.

As AI models grow in size and complexity, the data centers that run them consume enormous amounts of electricity and cannot tolerate downtime. At the same time, the U.S. power grid is showing increasing strain: a recent North American Electric Reliability Corporation (NERC) report warned that nearly half of the U.S. population lives in areas at risk of power shortfalls over the next five years.

This grid instability creates an opportunity for Generac. During the earnings call, management highlighted several developments that support the strategy:

• Pilot programs: The company has advanced to pilot stage with two major hyperscalers to provide backup power solutions.
• Backlog growth: The order backlog for industrial products has swelled to about $400 million.
• Capacity expansion: Generac is ramping its Wisconsin manufacturing facility to exceed $1 billion in production capacity.

Not all of this growth is organic: roughly 25% of the projected C&I expansion will come from the recent acquisition of Allmand, a mobile power equipment manufacturer. The Allmand deal, which closed on Jan. 5, 2026, secures immediate capacity and market share in the mobile rental sector and helps meet surging industrial demand.

Margins, Buybacks, and Lower Rates

The company’s broader 2026 outlook also reassured investors. Management expects total net sales to grow in the mid-teens, a notable rebound from 2025’s decline.

To underline confidence in the plan, the board approved a new $500 million share repurchase program. Buybacks are commonly viewed as a bullish signal: they indicate management believes the stock is undervalued and are intended to reduce the share count.

Key financial drivers for 2026 include:

• Margin expansion: Adjusted EBITDAmargins are forecast to expand to 18%–19%.
• Lower interest costs: With interest rates easing, interest expense is expected to fall to $65 million–$69 million in 2026.
• Free cash flow: The company projects approximately $350 million in free cash flow for the year.

Rising margins, lower debt costs, and active buybacks create a favorable setup for earnings growth, helping investors look past the disappointing fourth quarter.

Clearing the Decks: Why the Loss Didn’t Matter

To understand the bullish reaction, it helps to unpack the weak fourth-quarter results. Residential product sales fell 23% as late-2025 experienced fewer severe storms and outages than historical averages. For a company that sells home generators, relatively calm weather is a near-term headwind — but investors generally treat weather as cyclical rather than structural.

The quarter also included a one-time $104.5 million provision related to a product liability settlement, which drove a GAAP net loss of $24 million.

Rather than frightening investors, the charge was interpreted as “clearing the decks.” Resolving a long‑running product-liability issue now removes a substantial source of legal uncertainty. Many investors prefer a one-time hit to eliminate ongoing litigation risk, allowing attention to shift to operational execution in 2026.

From Storm Chaser to Grid Saver

The sharp move in Generac’s stock price reflects a changing market narrative. The name was long treated as a weather-dependent or “storm” stock; the 2026 outlook suggests it may increasingly be valued as a critical infrastructure play that supports the energy transition and the AI-driven data economy.

The rally’s speed was likely amplified by market mechanics. Heading into the report, short interest was about 7.1%, so a sharp price move would have forced some short-covering and accelerated the advance.

Valuation remains an important consideration. Trading near 40 times trailing earnings, the stock is priced for substantial growth. To justify that multiple, Generac must execute on its data-center expansion. With the legal overhang largely removed, a sizable backlog, and a clear strategy to serve the data economy, the market is betting that the company’s best days may lie ahead. Ultimately, the paradox of an earnings-miss rally is resolved by a simple idea: investors care more about where a company is going than where it has been.

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