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Brazil’s WEG invests $77M to expand U.S. transformer plant amid AI-driven demand

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Brazilian motor manufacturer WEG announced Tuesday it will invest $77 million to expand its Washington, Missouri specialty transformer plant, aiming to increase production capacity by 50% as demand surges from AI data centers, industrial manufacturing, and U.S. grid stability needs.

The investment, to be deployed over three years, will bring the additional capacity online no later than 2028, WEG U.S. managing director Peter Barry told Reuters. While the facility previously focused on renewable energy applications like wind power, Barry said the shift toward AI and data center infrastructure is now driving growth.

Despite President Donald Trump’s 50% tariff on Brazilian imports, Barry said the company’s decision was unaffected, citing strong and sustained growth in the North American market. “The North American growth for WEG over the last number of years has been very strong, and I would see that continuing,” he noted.

Key points from the plan:

  • Capacity expansion will be pre-sold, reflecting strong forward demand.

  • Investment will emphasize automation, though around 50 new jobs will still be created.

  • WEG remains open to additional U.S. investments as the AI and energy markets evolve, stressing a strategy of flexibility.

The expansion underscores how the AI boom is reshaping industrial supply chains, with transformers becoming critical components for powering vast data centers and stabilizing electricity grids.

EPAM Systems Raises 2025 Revenue and Profit Forecasts on Strong AI-Driven Demand

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EPAM Systems boosted its annual revenue and profit outlook on Thursday, driven by robust demand for its software services as companies continue heavy investments in artificial intelligence technologies. The company also exceeded second-quarter earnings expectations, pushing its shares up over 5% in premarket trading.

The software provider, known for its consulting, cloud, AI transformation, and engineering services, reported broad-based revenue growth across key industry sectors including financial services, healthcare, software, and consumer goods, as well as across global regions.

“As our clients prioritize their AI-readiness and preparatory actions, they are increasingly turning to us to build out their data and AI foundation,” said Chief Revenue Officer Balazs Fejes, who is set to become CEO in September.

EPAM now projects 2025 annual revenue growth between 13% and 15%, revised upward from a previous range of 11.5% to 14.5%. Analysts had expected 13.4%, according to LSEG data. The company also raised its adjusted earnings per share forecast to between $10.96 and $11.12, surpassing the prior guidance of $10.70 to $10.95 and analysts’ estimate of $10.85.

For the third quarter, EPAM anticipates revenue of $1.37 billion to $1.38 billion and adjusted earnings per share between $2.98 and $3.06, both above market expectations.

In Q2, the company posted revenue of $1.35 billion, an 18% increase year-over-year that beat estimates of $1.33 billion. Adjusted earnings per share of $2.77 also surpassed the forecast of $2.61.

Palantir Shares Surge Nearly 9% After Raising Revenue Forecast on Strong AI Demand

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Palantir Technologies (PLTR.O) shares jumped nearly 9% in early trading Tuesday after the company raised its annual revenue forecast for the second time this year. The data analytics and defense software firm is benefiting from strong demand for its AI-driven services across governments and enterprises.

Palantir’s stock has doubled this year and climbed more than 600% over the past three years, making it the top performer on the S&P 500 through the last close. Jacob Falkencrone, Saxo’s global head of investment strategy, said Palantir is evolving from a government vendor into an essential partner for enterprises in the AI revolution.

Wedbush analysts project Palantir could reach a $1 trillion market capitalization within the next few years, up from $379.14 billion as of the latest close. Co-founded by Peter Thiel in 2003 and publicly listed in 2020, Palantir has secured multiple U.S. government contracts this year, including a $30 million deal with Immigration and Customs Enforcement.

The Trump administration’s renewed focus on national security has fueled growth, with the U.S. Army indicating it may spend up to $10 billion on Palantir’s services over the next decade. Sales to the U.S. government surged 53% in Q2 to $426 million, accounting for over 42% of Palantir’s roughly $1 billion total revenue for the quarter.

Valuation Concerns:
Despite its rapid growth, some analysts warn Palantir’s valuation is extremely high, trading at more than 200 times 12-month forward earnings—far above AI peer Nvidia’s multiple of 34.81. Morningstar analysts noted the company’s robust competitive advantages but cautioned that the valuation is increasingly difficult to justify.

Palantir also expects higher expenses in Q3 due to seasonal hiring amid competition for AI talent from major tech firms. Nevertheless, at least eleven brokerages raised their price targets on the stock following the earnings release.