Quick Read
- Helios Technologies (HLIO) posted a 23% YTD share price return in 2025, signaling solid momentum.
- AI’s soaring energy demands are straining global infrastructure, highlighting the need for robust energy and control solutions.
- AMD’s Helios rack-level AI systems are fueling optimism, with analysts projecting up to 40% stock upside for AMD in 2026.
Artificial intelligence is changing the investment landscape—and the world itself—faster than most people realize. In 2025, the relentless growth of AI is testing the limits of global power grids, driving up electricity prices, and sparking a new wave of infrastructure innovation. But while chipmakers and cloud platforms dominate headlines, the less glamorous players—the energy infrastructure specialists—are quietly becoming the backbone of this technological revolution.
AI’s Insatiable Energy Appetite: Helios at the Crossroads
Every time a large language model like ChatGPT runs a query or updates itself, it draws enormous amounts of power. According to InsiderMonkey, some data centers now consume as much electricity as small cities. The world is pouring billions into AI, but few are asking: where will all that energy come from?
Sam Altman, OpenAI’s founder, openly warned: “The future of AI depends on an energy breakthrough.” Elon Musk went further: “AI will run out of electricity by next year.” These warnings aren’t just rhetoric—they’re signals that energy infrastructure is becoming the ultimate bottleneck for AI’s continued advance.
Enter Helios Technologies (HLIO), a company that, while not a household name, sits at the nexus of energy, infrastructure, and the AI-driven future.
Helios Technologies: Quiet Growth, Real Innovation
Helios Technologies has quietly outperformed in 2025, posting a 23% year-to-date share price return and a 21% one-year total shareholder return (Yahoo Finance). Despite a recent wobble, the stock’s momentum is strong, and its current valuation suggests there’s more upside ahead. Analysts peg its fair value at $65.20, about 16% above its latest close.
Why the optimism? Helios is riding the wave of electrification in mobile and industrial equipment. As original equipment manufacturers (OEMs) seek more sophisticated electro-hydraulic and electronic control solutions, Helios delivers—through products like Enovation Controls and Cygnus Reach. This isn’t just about incremental improvement; it’s about enabling the next generation of smart, IoT-enabled infrastructure that can handle the demands of AI-powered industry.
But there’s caution too. The company trades at a price-to-earnings ratio of 53.7—well above the industry average. While its innovation and growth potential justify some premium, investors must weigh these strengths against risks like cyclical market exposure and slow adoption of advanced tech.
Energy Infrastructure: The Real AI Enabler
As AI’s hunger for power intensifies, the companies that own and operate energy infrastructure—especially those with expertise in nuclear, LNG, and renewable fuels—are poised to benefit most. The “toll booth” operators of the new digital economy, as InsiderMonkey describes them, will profit from every watt consumed by data centers and AI systems.
One such company, highlighted for its debt-free balance sheet and massive cash reserves, isn’t just providing energy. It’s also deeply involved in engineering, procurement, and construction (EPC) for large-scale projects across oil, gas, and renewables. This diversification makes it a critical player as the U.S. ramps up LNG exports under President Trump’s “America First” energy doctrine, and as manufacturers onshore operations to dodge new tariffs.
In short, AI needs energy. Energy needs infrastructure. And infrastructure needs builders like Helios with scale, experience, and execution power.
AMD’s Helios Systems: The Tech Side of the Equation
While Helios Technologies focuses on infrastructure, AMD is capturing headlines for its AI-focused chip systems—specifically its rack-level Helios AI platforms. According to TradingView, AMD’s data center segment hit a record $4.3 billion in Q3, driven by the MI300 and upcoming MI400 accelerators. Analysts see up to 40% upside for AMD stock as its Helios systems win deals with cloud giants and AI leaders like OpenAI and HUMAIN.
Piper Sandler’s Harsh Kumar and Raymond James’ Simon Leopold both cite AMD’s Helios rack-level AI systems as a core growth engine. These systems are designed for high-performance, scalable AI workloads—making them essential for the next wave of intelligent applications. The ROCm software ecosystem further strengthens AMD’s position, creating a virtuous cycle of hardware and software integration.
What ties all these threads together? The accelerating race for AI capacity is driving demand not just for chips, but for the power and infrastructure to support them. As more talent and capital flood into AI, every part of the stack—from energy generation to hardware innovation—becomes a potential growth story.
Risks and Reality: Is the Market Overpaying?
Despite the bullish narrative, risks remain. Helios Technologies’ high valuation means investors are betting heavily on continued innovation and market adoption. If cyclical end markets slow or IoT-enabled solutions lag in uptake, those bets could turn sour. Likewise, the broader AI boom could strain infrastructure faster than companies can expand capacity, raising the specter of energy bottlenecks and higher costs.
Still, the fundamentals are shifting. Wall Street is waking up to the critical role of infrastructure in the AI age. Hedge funds and institutional investors are quietly accumulating shares of these less obvious plays, betting that the convergence of AI, energy, and onshoring will drive outsized returns in the coming years.
Helios Technologies stands at a pivotal crossroads: its expertise in electrification and control systems, coupled with the global surge in AI-driven energy demand, positions it as a potential linchpin in the future of industrial innovation. But with valuations running hot and adoption risks in play, smart investors will need to look beyond the hype, weighing real growth prospects against the realities of a rapidly shifting market. As AI continues to disrupt every corner of the economy, the companies building its foundation—like Helios—may ultimately prove to be the real winners of the decade.