Dycom is a “a very, very solid growth company”, Gordon Reid says

Goodreid Investment Counsel president and CEO Gordon Reid says Dycom Industries (Dycom Industries Stock Quote, Chart, News, Analysts, Financials NYSE:DY) is an AI infrastructure play rather than a traditional technology stock.

Speaking on BNN Bloomberg’s Market Call on Sept. 9, Reid said Dycom benefits from demand for fibre and network capacity tied to hyperscaler growth.

“It’s not a tech company. It’s basically a picks-and-shovels company,” Reid said.

The investor explained that Dycom lays fibre and other network infrastructure needed to connect data centres, homes and businesses as demand for AI and data capacity grows.

Reid said the company’s revenue is concentrated among its largest customers, making results more volatile from quarter to quarter because of weather, project timing and customer delays.

Still, he called Dycom “a very, very solid growth company” over the long term.

Reid said the stock can trade with hyperscaler sentiment because it is a derivative AI infrastructure play, but he expects the company to perform well over time.

The stock is up 17.6% over the past 12 months and 316.9% over five years.

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