CMI

As AI stocks experience a selloff, Zacks highlights three non-AI stocks with strong fundamentals and growth potential: Cummins (engine/powertrain manufacturer benefiting from data center boom), Argenx (biotech with blockbuster autoimmune drug Vyvgart expanding to new indications), and PACCAR (commercial truck manufacturer with 87 years of profitability). All three are trading at discounts from recent highs with positive earnings outlooks.

While AI stocks experienced a selloff, three non-AI companies present attractive long-term investment opportunities: Cummins (CMI), a historic engine manufacturer benefiting from data center demand and trading 29% below summer highs; Argenx (ARGX), a biotech firm with its blockbuster autoimmune drug Vyvgart expanding to new indications; and PACCAR (PCAR), a truck manufacturer positioned to benefit from fleet refreshes and constrained freight capacity.

Generac Holdings maintains its $350 million 2026 free cash flow forecast while increasing capital spending to 4.5% of sales to expand production capacity for its booming data center business. The company has secured $1.6 billion in data center backlog and two multi-year supply agreements, with capital investments expected to pay back in under 12 months. Competitors Caterpillar and Cummins are also benefiting from strong data center power demand.