The AI revolution has created obvious investment opportunities in semiconductor stocks like Nvidia (NASDAQ:NVDA | NVDA Price Prediction) and even those supplying the chipmakers like ASML (NASDAQ:ASML). But with the data center boom underway and hyperscalers like Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) committed to spending hundreds of billions on new facilities, investors may be overlooking a hidden investment opportunity in the companies actually constructing the data centers: Fluor (NYSE:FLR) could be the best hidden stock to capitalize on the AI boom.
Building the Future of Industry
The company organizes its work into three core segments. The largest and fastest-growing is Urban Solutions, which includes advanced manufacturing (such as chip fabs), mining, metals, and life sciences. This segment now accounts for 73% of Fluor’s total backlog, reflecting strong demand in high-tech and future-focused markets. The other two segments — Energy Solutions (oil, gas, and chemicals) and Mission Solutions (government contracts for defense and environmental projects) — round out the portfolio and provide diversification.
What sets Fluor’s financial model apart is its heavy reliance on reimbursable contracts. In these deals, clients cover the project costs and pay Fluor an additional fee, which significantly lowers the company’s exposure to cost overruns.
In the third quarter, 82% of the company’s $28.2 billion backlog was reimbursable — up from earlier periods and a clear sign of disciplined contract selection. That same quarter, revenue reached $3.4 billion. Urban Solutions led the way with $2.3 billion, driven by increased activity on major mining and life-sciences projects. Energy Solutions contributed $262 million (affected by a one-time legal charge), while Mission Solutions added $761 million from steady government work.
Key Semiconductor Deals and CHIPS Act Impact
Fluor serves as a major EPC provider for semiconductor facilities, directly benefiting from policies like the CHIPS Act, which has driven massive investments in domestic chip production. The company supports key projects for Samsung Electronics, including its major Texas expansion backed by CHIPS funding, and Taiwan Semiconductor Manufacturing (NYSE:TSM), whose Arizona fabs represent billions in total investment. These efforts involve the construction of specialized cleanrooms and infrastructure for advanced chip nodes. Backlog growth has been supported by these awards in advanced manufacturing, with the overall figure standing at $28.2 billion in the third quarter.
Beyond semiconductors and AI infrastructure, Fluor’s reach extends to pharmaceuticals, where it handles life-sciences facilities for companies like Merck (NYSE:MRK), including precision-engineered, cGMP-compliant plants. In automotive and EV sectors, the company builds assembly and battery facilities that support the shift to electric vehicles. Recent awards have included U.S. life-sciences contracts and mining projects, further strengthening Urban Solutions’ backlog to $20.5 billion.
Fluor is also positioning itself in the hyperscale data center market, a direct play on AI-driven demand. The company has secured a master agreement with a U.S. data center provider, starting with a co-location project in the $500 million to $1 billion range, with potential for much larger hyperscaler builds worth multiple billions.
Fluor leverages its expertise in modular construction and complex megaprojects to handle tight timelines, supply challenges, and massive power requirements. It was recognized as a top data center constructor in 2025 and sees meaningful growth ahead in North America, where hyperscalers continue aggressive spending.
Key Takeaway
Trading around $44 per share, Fluor offers an attractive valuation, trading for just 2 times trailing earnings and 18 times next year’s estimates. That unusually low P/E stems from the sale of 15 million shares of NuScale Power‘s (NYSE: SMR) stock last October with a weighted average price of around $40 per share. It represents a gain of over 300% since NuScale went public in May 2022 at $10 per share. Fluor still owns 111 million shares of NuScale’s Class B stock — about 39% of NuScale’s equity — but it plans to sell all of its position by the middle of 2026.
So don’t think of Fluor as undervalued in the classic sense based on that metric; it also trades at a fraction of its trailing 12-month sales. The EPC stock is expected to generate steady revenue and earnings growth in the coming years from its expertise across numerous industries, but with the AI revolution showing no signs of slowing, Fluor is perfectly positioned to capture its growth out of the spotlight.
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