Hammond Power Solutions (HPS.A) has seen its stock price surge by 83.3% as global demand for transformers intensifies, according to a recent analysis by Serenity. The company, humorously dubbed "Transformers in the Sky," is benefiting from a robust order backlog and a significant market share in the dry-type transformer sector. Serenity highlights that the true bottleneck in AI data center expansion is not GPUs but transformers and high-voltage switchgear, with HPS.A positioned as a "highly attractive long-term compounding company." Serenity's analysis points out that HPS holds a 23% market share in the dry-type transformer market and is a key supplier in the liquid-cooled transformer and switchgear supply chain, both facing supply bottlenecks of 2 to 5 years. As tech giants like Amazon and Microsoft compete for resources to build AI data centers, transformer component prices are expected to rise. HPS's strategic manufacturing presence in Canada, Mexico, and the U.S. positions it well to meet this demand, with major clients including Powell and Eaton integrating HPS transformers into their systems.