「Stock God」 Serenity is bullish on the surge in demand for power transformers, betting that HPS.A has already risen by over 83%.

May 29 – Self-proclaimed "Stock God" Serenity shared in a recent post that Hammond Power Solutions (HPS.A) is closing in on a key milestone within its "2 million timeframe," noting the stock has surged 83.3% since he first highlighted the firm earlier. Serenity jokingly dubs Hammond Power "Transformers in the Sky," pointing to extremely high global transformer demand visibility, a robust order backlog, and a dominant ~23% market share in the dry-type transformer space. He describes HPS.A as a "highly attractive long-term compounding company" rather than a typical stock on a sharp parabolic rally. Earlier analysis from Serenity flagged a critical gap in AI infrastructure: the primary bottleneck to global data center expansion isn’t GPUs, but transformers and high-voltage switching equipment. He revealed he holds a long position in Hammond, which boasts a ~23% share of the dry-type transformer market and covers both liquid-cooled transformer and switchgear supply chains—key power components facing projected 2 to 5-year supply shortfalls. Driving demand, tech giants including Amazon, Microsoft, Meta Platforms, Alphabet, and Oracle Corp are competing aggressively for AI data center construction resources, leading Serenity to predict transformer component prices could keep rising, mirroring the trajectory of NAND flash memory costs. Citing industry data, he noted roughly half of U.S. data center construction projects have been delayed or scrapped due to power infrastructure shortages, while Canada and Mexico have emerged as critical high-power transformer suppliers for AI facilities. Conveniently, HPS maintains production capacity across the U.S., Canada, and Mexico. Serenity also highlighted that HPS counts major electrical equipment manufacturers like Powell and Eaton as core clients, who integrate Hammond’s transformers into their own switchgear systems.