1、North America Equity Research21 November 2025J P M O R G A NSMid Cap IndustrialsUnderappreciated AI Plays:Adding VMI to AFL,Removing AWINorth America Small and Mid Cap IndustrialsTomohiko Sano AC(1-212)622-Ethan Coyle(1-212)270-Brendan Shea,CFA(1-212)622-J.P.Morgan Securities LLCKey SMid Cap Industr

2、ials Research:Initiations:VMI,MIR,GTES,RRXDeep Dives:MIR,RRXAI-driven electricity demand and data center expansion are fueling a multi-year infrastructure supercycle.Reflecting this outlook,Valmont(VMI)is newly added to our U.S.Analyst Focus List(AFL)as a Value idea,while Armstrong World Industries(

3、AWI)is removed.Valmont,Mirion,Gates Industrial,and Regal Rexnord are well positioned to benefit from grid modernization,nuclear momentum,and rising data center investments,making them attractive plays in the evolving industrial landscape.We will host our webinar“Underappreciated AI Plays”at 9:00am E

4、T/14:00 UK on 11/21(Register Here).Valmont:Powering the Grid Transformation:Valmont(VMI)stands at the intersection of powerful megatrends such as electrification,grid modernization,and renewable integration.With a$1.7 billion backlog and double-digit EPS growth projected,VMI is uniquely positioned t

5、o benefit from surging utility capex and the multi-year supercycle in grid infrastructure upgrades.Strategic investments in capacity and operational efficiency further enhance its ability to capture organic growth.As utility capex increases,Valmonts premium utility portfolio and disciplined capital

6、allocation make it a compelling play in the evolving infrastructure landscape,in our view.Mirion:Enabling the Nuclear Renaissance:Mirion(MIR)is critical to the nuclear sectors response to rising global electricity demand,driven by AI and data center expansion.Supporting over 95%of nuclear power plan