Hubbell: Pure play on US electrification demand driven by AI and grid investment cycle

Leading provider of critical electrical products to utilities is seeing accelerating growth linked to the massive investments required to upgrade electrical grids in a positive load growth world

Welcome to the 16th investment case, 14th resilience, 8th reshoring/sovereignty and 7th AI & data center idea on Crack the Market (and the most comprehensive Hubbell investment case you will find online)! Join me as I dissect this pure-play on US electrification demand driven by multiple growth drivers across end markets (including AI and grid upgrade investment cycles).

Twice a week, I will release deep dives into stocks and sectors that fit into the three themes that I see winning in this age of tariffs and deglobalization: resilience, sovereignty & reshoring, China. I will then deep dive into the opportunities in the AI data center value chain.

Take advantage of this once in a generation opportunity to build long term wealth by investing in great stocks that will deliver returns for your portfolio for years to come.

You can already read my first 15 deep dives, all of which I see as winners in this new world of tariffs and deglobalization:

• ASML (reshoring & China idea): The most innovative company in the world will 2.5x its EPS by 2030.

• LKQ (resilience idea): The most defensive business in the auto industry is a tariff winner and could become a compounder.

• Atlas Copco (resilience, reshoring & China idea): The best industrials business in the world is on sale, extremely resilient and will benefit from US reshoring.

• Badger Meter (resilience idea): The perfect business in the perfect end market, water meters are the definition of resilience.

• Knorr Bremse (resilience idea): Who knew making brakes was this lucrative? Rerating with self help story and upside from German infra plan.

• Flex (reshoring idea): The electronics manufacturing giant building Nvidia’s servers and enabling reshoring is becoming a better business.

• Itron (resilience & reshoring idea): Riding the grid investment super cycle and enabling smart grids.

• Roper (resilience idea): A resilient cashflow compounder in the software space with inflecting growth.

• RELX (resilience idea): The company to own forever – one of the very best businesses on Earth.

• CPKC (resilience & reshoring idea): The rail connecting Canada/US/Mexico and benefiting from reshoring.

• Novo Nordisk (resilience idea): The most exciting pharma company in the world is misunderstood and its growth engine is ready to roar back to life.

• Kurita (resilience, reshoring & China idea): Water services expert with improving margins and benefiting from reshoring of semiconductor production.

• Halma (resilience idea): High quality compounder in safety, health and environmental technologies.

• Quanta Services (resilience & reshoring idea): Countercyclical compounder riding a multi decade infrastructure buildout.

• Infineon (China idea): Power semiconductor leader with strong structural drivers (AI power and China auto) amidst a cyclical recovery.

After reading this article, you will understand why this company is so special thanks to a unique position as the leading supplier of critical electrical products to utilities, why it is so defensive and is seeing accelerating growth given the massive investments required to upgrade electrical grids in a positive load growth world (for the first time in decades), why the recent selloff in electrical names has made the company even more attractive.

In this article I go through:

1. Hubbell’s business and how it dominates the fragmented market of supplying critical products to utilities and has scope to consolidate it.

2. How the company has transformed into a pure play on US electrification demand and grid investments driven by multiple megatrends.

3. How the company aims to deliver MSD-HSD growth backed by growing multi-year capital investment plans from its customers.

4. How the recent pullback on electrical names post DeepSeek and disappointing results has created an interesting entry point into a resilient and growth story at the crossroads of electrification, reshoring and AI.

Hubbell Investment Case