Sunbelt Rentals sees $35 billion valuation with hedge funds increasing positions amid AI-driven equipment demand and a $1.5 billion buyback.
Nearly a dozen hedge funds increased holdings in Sunbelt Rentals (SUNB) during Q1, targeting the $35 billion equipment rental firm as AI data center construction drives demand for heavy machinery and power systems. The stock trades at 20x forward earnings, a discount to peers despite growth potential.
Sunbelt Rentals, valued at $34.5 billion, provides industrial equipment and power systems, sectors benefiting from AI infrastructure expansion. Management initiated a $1.5 billion share buyback, citing undervaluation and confidence in long-term growth.
The move highlights hedge funds’ shift toward under-the-radar plays tied to AI, diverging from traditional large-cap favorites like hyperscalers or UnitedHealth Group (UNH).