There’s little doubt that market volatility can be intimidating. Yet, for those who choose to look at a stock’s long-term return potential, these sharp price movements are somewhat rare opportunities to buy high-quality businesses at attractive prices. Furthermore, market noises force investors to take a step back and fundamentally reassess whether existing growth opportunities are legitimate or if a stock’s current momentum is short-lived.
There will always be something to be nervous about in the stock market, but investors who can prioritize logic over emotions can find compelling opportunities in the industrials sector. Here are three picks that are worth monitoring.
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Cipher Digital (NASDAQ: CIFR) leases AI data centers to tech giants, essentially making it a landlord for the AI buildout. Cipher Digital provides the power and infrastructure, while tech companies must bring their AI chips.
The stock has gained more than 500% over the past year, but it would be easy to forget those wins after a 32% year-to-date decline. Shares are down by more than 50% from all-time highs, with macroeconomic pressure playing a key role. Some investors are also concerned about the significant capital that is required to build AI data centers, but it is better to focus on how Cipher Digital’s position in a hypergrowth industry can translate into substantial growth over the next few years.
Some of that growth has already materialized. Cipher Digital has signed lucrative contracts with tech leaders that will dwarf its current earnings. One of its deals from last year was a 15-year, $5.5 billion contract with Amazon Web Services that will deliver 300 megawatts of capacity. Cipher Digital also secured a 200 megawatt site in Ohio to wrap up 2025, indicating that it is still expanding its capacity while waiting for the AI opportunity to fully materialize.
Just recently, Cipher Digital announced another 15-year deal with a hyperscale tenant. The company simultaneously secured a $200 million revolving credit facility backed by multiple big banks. While it would have been nice to know the terms of the deal and who the new customer is, this announcement further proves the strong demand for Cipher Mining’s services.
Caterpillar (NYSE: CAT) is a construction stalwart that has been in business for more than 100 years. It’s in the middle of a correction right now, but it is still up by more than 10% year to date.
