Prysmian: AI's Next Bottleneck Runs Through Power And Fiber

Prysmian is uniquely positioned to benefit from AI-driven data center and grid expansion, supplying both power and optical connectivity infrastructure. A strong backlog (€17B Transmission), a proprietary installation fleet, and high EBITDA margins (21.2% Transmission) support forward visibility and pricing power.

Recent guidance upgrades—2026 adj. EBITDA midpoint of €2.85B and FCF of €1.70B reflect robust growth and reinvestment, excluding the pending Atkore acquisition. Despite a premium valuation (~16x EV/EBITDA), a credible path to higher earnings and deleveraging justifies a Buy rating with ~25% upside potential.

The typical narrative about artificial intelligence focuses on the competition to accelerate performance with increased computing power, or "compute," and memory, while overlooking the physical infrastructure necessary to This article was written by Simple Investment Ideas 10.89K Followers Follow "AWS Certified AI Practitioner Early Adopter"I am a DevOps Engineer for a major, wholly owned subsidiary of a large-cap Fortune 500. I have been the primary driver of Anthropic-based tooling in our company's division, and have successfully pushed for the division-wide integration of tools like Claude Code via AWS Bedrock. I am currently spearheading the implementation of AI-infrastructure in our division.

I am a true subject-matter expert on the actual buildout, deployment, and maintenance of AI tools and applications. I have increasingly deep knowledge on the science behind generative AI systems as a result of first-hand experience with machine learning algorithms, model training, and model deployment.

I contribute to Seeking Alpha as an outlet to share my AI and machine learning insights through an investment-focused lens.