Today, we examine AI infrastructure through the physical and digital layers required to deploy AI at scale, and discuss stocks poised to benefit from this phase of the AI supercycle (see our industry note titled (The AI Infrastructure Cycle: Constraints, Complexity and Value Creation Beyond Computing). Across record capex spending and operating earnings on AI infrastructure companies, we favor stocks of companies well positioned to monetize further gains from labor, power, and reliability constraints. We believe NWPX Infrastructure, a manufacturer of water related infrastructure, including engineered pipeline systems and precast products, could see the benefit from increasing AI infrastructure demand in the form of increased bids for water transmission systems. Data centers pump cold water into pipes to cool servers in buildings, and as such have created an incremental strain on water infrastructure. NWPX in 3Q:25 noted a hyperscaler's name showed up on a bid log for a water transmission project that had yet to be bid. We think the stock is more likely to see the benefit of thematic exposure to data centers (even if tangential) than any quantifiable P&L benefit in the near term. Longer term, we foresee potential for demand for water filtration systems (such as the ones NWPX's ParkUSA subsidiary offers) for ensuring cooling systems run efficiently and/or reducing overall water consumption. We raise estimates as we think NWPX will likely continue to benefit from increasing demand for water infrastructure; we think demand is rising from both private demand (i.e., the aforementioned hyperscaler) but also increasing public demand from federally funded infrastructure projects that have a meaningfully longer tail than other infrastructure projects (e.g., highways). We now model 2026 EPS of $4.02 (from $3.98) and 2027 EPS of $4.90 (from $4.77). NWPX Infrastructure exited 3Q:25 with net debt of $37 million ($3.79 per share), leverage of 0.5x and a debt ratio of 9%. The company's strong cash flow generation and conservative financial profile support our moderate risk rating. We note the peer group's increased valuation multiples as a result of (in our view) increased optimism around monetizing labor, power, and reliability constraints, particularly around the basket of E&C company peers that we assign one-third weighting to in our overall peer group for NWPX (with the other two-thirds going to Insteel Industries (NYSE: IIIN, NR) and Lindsay Corporation (NYSE: LNN, NC)). The peer group currently trades at an average of 20x media forward two-year P/E, with the E&C basket trading at 30.4x, LNN at 18.9x, and IIIN at 11.4x. Our newly raised $88 price target (from $72) is based on 18x (from 15x) our increased 2027 EPS estimate of $4.90 (from $4.77). The 18x multiple is a 10% discount to the peer group, which we view as fair.