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How Comfort Systems USA Is Playing a Crucial Role in the AI Revolution
Key Points
Its backlog grew to $12.45 billion, and management is optimistic about growth for several more quarters.
The commercial HVAC company has seen its shares rise by almost 100% over just the past 12 months.
The artificial intelligence (AI) revolution is mostly associated with data centers, semiconductors, and hyperscalers. We don't normally think of heating, cooling, and plumbing companies in that mix. Strangely enough, this is an oversight. Comfort Systems USA (NYSE: FIX), a commercial heating, ventilating, and air-conditioning (HVAC) and mechanical services company, is one of the less-obvious winners of the AI infrastructure boom.
AI models require an incredible amount of computing power, which creates significant heat. Heat is generated in data centers, which range in size from thousands to millions of square feet. These facilities require complex thermal management systems to prevent overheating.
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Image source: Getty Images.
Comfort Systems specializes in such commercial and industrial cooling systems. The company has been scooping up contracts for AI build-outs, significantly increasing its backlog.
Shares of Comfort Systems have spiked nearly 100% in the past year. The stock's forward P/E ratio has risen substantially from early 2025 and now stands at 47. Because of this, Comfort Systems appears to be trading at a premium now. Still, with a backlog of $12.45 billion and organic revenue growth of 51% year over year this past quarter, the price is justifiable for long-term investors.
Comfort Systems also announced in late April a $0.10 increase in its quarterly dividend to $0.80 per share.
Investors need to remember that when tech and AI companies hog the headlines, other overlooked companies benefit from their massive spending. Comfort Systems USA is just such a company.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Comfort Systems USA. The Motley Fool has a disclosure policy.