Quanta Services stock dropped Thursday after Goldman Sachs slashed its price target for the electrical infrastructure company, reflecting growing skepticism about the artificial-intelligence spending boom.

Quanta (2382 TT), a Taiwanese server and notebook contract manufacturer, reported September revenue of NT$325.3 billion, down 23.3% from August but up 76.7% year over year. The company attributed the monthly decline to the timing of customer shipments and a tough comparison with August, the Economic Daily News reports. It says Nvidia’s GB-series systems are being produced smoothly, with shipments in line with customers’ schedules. Q3 revenue totaled NT$1.12 trillion, up 7.6% from Q2 and 125.2% year over year.

Quanta’s new guidance floor is above their old ceiling. Not a beat, a full range shift. Backlog: $53.4B, up 49% year over year. This is the company that builds the wires and substations. The constraint was never just chips. $PWR #GRID# #infrastructure#

AI server maker Quanta (2382 TT) says its 2027 expansion will focus on electrical infrastructure upgrades. Its SMT equipment is largely ready, but newer AI racks consume more power and take longer to test. We think that investors tracking $NVDA's manufacturing partners need to look beyond assembly-line capacity. The ability to power and test completed racks also affects how quickly hardware can ship. At its Nov. 11 earnings briefing, CFO Tim Yang said the company needs to keep increasing factory power capacity to support those requirements. SMT lines mount components onto circuit boards. Completed racks still need powered testing before shipment. Longer tests occupy testing capacity for more time, while higher rack power raises the electrical capacity needed to run them. Quanta expects total 2027 capex of NT$40bn–45bn.

Jim Cramer on $PWR Quanta Services: “I still think it is [a buy]. I think there is still a buildout. Right now, because of the election, it looks like things aren’t going to go well. I think when that’s over, you’re going to see more building going on. I like PWR.”

Bernstein Upgrades Quanta Services $PWR to Outperform, Raises PT to $775 from $748 • Sees EPS growing at ~25% CAGR vs. ~15% expected by the Street • Says the AI data center bottleneck is shifting from power availability to skilled labor, an area where Quanta has scale • Large transmission project pipeline has grown ~25% to $170B since 2025 • Expects higher-value transmission, MEP and fabrication work to support margin expansion • Forecasts ~$15B of free cash flow through 2030, giving $PWR more capacity for acquisitions and expansion Analyst: Chad Dillard