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Atlas Energy Solutions (AESI +13.47%) stock was the solution for an ailing portfolio on Friday. The company, which provides equipment and materials used to extract oil and gas and has recently branched out into power generation, saw its shares rocket nearly 14% higher on the signing of two advantageous new contracts.The reimbursement premium Before market open that morning, Atlas revealed that two wholly owned, indirect subsidiaries had signed cost reimbursement agreements. The counterpart is what the company described as a "leading" frontier artificial intelligence (AI) lab that it did not name. The work involves providing supporting equipment and incremental power-generation assets for data centers.
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Atlas currently has a global framework agreement (GFA) with heavy equipment company Caterpillar; the two new contracts will involve Caterpillar power generation hardware.
In its press release announcing the twin deals, Atlas quoted CEO John Turner as saying, "This customer's willingness to enter into cost reimbursement agreements is a clear sign of commitment to these projects as we work together toward the execution of long-term power purchase agreements."
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New(ish) kid in town Companies directly involved in the construction and modification of AI data centers have received plenty of investor attention recently, as the great AI arms race continues. Perhaps due to its recent pivot into power generation, Atlas remains something of an under-the-radar player in this game. As such, I'd say it's a potential sleeper stock worth watching.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.