Investors gave up on this AI play, but charts suggest it's worth a look, Jay Woods says
This stock grabbed traders attention in early 2026 as momentum drove shares up over 75%. But the sentiment was too euphoric.
TL;DR
- Dycom Industries builds the fiber networks and electrical systems that connect and power data centers, crucial for AI infrastructure.
- The stock surged over 75% in early 2026 but subsequently fell nearly 50% from its peak.
- Despite the price drop, Dycom's fundamentals remain strong, with a growing backlog and sustained data center demand.
- Technical analysis suggests the stock has reached a support level, with indicators turning higher from oversold conditions.
- The article suggests a potential buying opportunity for both short-term traders and long-term investors, with defined risk levels.