There’s little doubt that market volatility can be intimidating. Yet, for those who choose to look at a stock’s long-term return potential, these sharp price movements are somewhat rare opportunities to buy high-quality businesses at attractive prices. Furthermore, market noises force investors to take a step back and fundamentally reassess whether existing growth opportunities are legitimate or if a stock’s current momentum is short-lived.
There will always be something to be nervous about in the stock market, but investors who can prioritize logic over emotions can find compelling opportunities in the industrials sector. Here are three picks that are worth monitoring.
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Cipher Digital (NASDAQ: CIFR) leases AI data centers to tech giants, essentially making it a landlord for the AI buildout. Cipher Digital provides the power and infrastructure, while tech companies must bring their AI chips.
The stock has gained more than 500% over the past year, but it would be easy to forget those wins after a 32% year-to-date decline. Shares are down by more than 50% from all-time highs, with macroeconomic pressure playing a key role. Some investors are also concerned about the significant capital that is required to build AI data centers, but it is better to focus on how Cipher Digital’s position in a hypergrowth industry can translate into substantial growth over the next few years.
Some of that growth has already materialized. Cipher Digital has signed lucrative contracts with tech leaders that will dwarf its current earnings. One of its deals from last year was a 15-year, $5.5 billion contract with Amazon Web Services that will deliver 300 megawatts of capacity. Cipher Digital also secured a 200 megawatt site in Ohio to wrap up 2025, indicating that it is still expanding its capacity while waiting for the AI opportunity to fully materialize.
Just recently, Cipher Digital announced another 15-year deal with a hyperscale tenant. The company simultaneously secured a $200 million revolving credit facility backed by multiple big banks. While it would have been nice to know the terms of the deal and who the new customer is, this announcement further proves the strong demand for Cipher Mining’s services.
Caterpillar (NYSE: CAT) is a construction stalwart that has been in business for more than 100 years. It’s in the middle of a correction right now, but it is still up by more than 10% year to date.
The company’s construction equipment has been seeing more demand in part due to the AI buildout. It requires a lot of equipment and construction services to build AI data centers, but that’s not the only way Caterpillar has been benefiting from the latest trend.
The firm’s power generators have been a big hit as AI data center providers and tech companies seek additional energy sources. Power generation sales surged by 44% year over year in Q4. It’s part of Caterpillar’s Power & Energy segment, which was up by 37% year over year. Construction sales were up by 11%, with resource industries down by 7%, showing that the demand for power and energy is the major growth driver in this cycle.
Sales for this segment were a bit sluggish in the first half of the year but picked up in the third quarter. That quarter featured 17% growth for the Energy & Transportation segment. If the AI buildout continues to boost the need for energy, Caterpillar should continue to extend its rally.
Argan (NYSE: AGX) provides engineering, procurement, and construction services for customers with power and renewable energy sites. The company has received a big boost due to the AI buildout, resulting in a $2.9 billion backlog at the end of fiscal 2026. That’s more than double Argan’s fiscal 2025 backlog, which sat at $1.4 billion.
While the AI buildout presents attractive opportunities, Argan mentioned in its Q4 FY26 earnings presentation that decades-old power assets will require urgent upgrades or replacements across the U.S. The company mentioned that 104 gigawatts are expected to be retired in aging power plants across the country by 2030. Argan will have to build new plants that are more effective to replace the old ones and make sure those gigawatts can remain online.
Argan stock surged by 38% on the day it released Q4 FY26 results, but has pulled back since the news. The construction service provider is enjoying multiyear tailwinds that can support future gains.
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Marc Guberti has positions in Cipher Mining. The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.
3 Growth Stocks Worth Buying Through the Volatility and Holding for a Lifetime was originally published by The Motley Fool



















