When a stock has delivered eye-popping returns in recent quarters, Foolish investors have to ask whether the business behind the move is improving fast enough to support that rally.
Especially in fast-growing industries like artificial intelligence (AI) and digital infrastructure, it’s easy to get caught up in the hype. That’s why investors need to pay attention to a company’s fundamentals before investing and find out whether it owns assets that remain valuable no matter how the market feels.
Keel Infrastructure (TSX: KEEL) is one of those cases. Notably, the stock has already risen nearly 190% so far in 2026 to currently trade at $9.35 per share with a market cap of about $5.7 billion. Let’s take a closer look at whether Keel Infrastructure can continue building on its impressive momentum.
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A business tied to a powerful industry
If you don’t know it already, Keel Infrastructure is a North American digital infrastructure and energy company that develops and owns data centres and energy infrastructure for high-performance computing (HPC) and AI workloads.
That puts Keel close to one of the biggest bottlenecks in the AI boom: power. AI data centres need massive amounts of electricity, reliable grid access, land, and cooling. Keel’s strategy is built around that need.
The company has a 2.2 gigawatt (GW) development pipeline, with established grid interconnections already in place across Pennsylvania and Washington in the United States, and Quebec in Canada. That pipeline is the heart of its growth story.
Execution is now the key thing to watch
The recent rally in KEEL stock is easy to understand as it’s already turning its plans into action, with work underway at several key sites.
In the first quarter of 2026, Keel secured zoning approvals and continued advancing site development at Panther Creek, Sharon, and Moses Lake. While land development and environmental permits are still in progress, these sites are important because the company expects to advance them toward lease execution in 2026.
In addition, Keel also has a solid liquidity position to support this push. As of May 8, it had about US$533 million in total liquidity, including US$336 million in unrestricted cash and US$197 million in unencumbered Bitcoin. That gives the company some breathing room. It also reduces near-term funding pressure as it tries to move from a transformation story to an execution story.
The risk factor you should know
Still, investors should not ignore the financial picture. Keel’s first-quarter revenue from continuing legacy operations fell 23% year-over-year to US$37 million. Its operating loss widened to US$98 million, compared with an operating loss of US$35 million a year ago.
Some of that pressure came from transformation-related items, including professional fees tied to its U.S. redomiciliation, U.S. generally accepted accounting principles (GAAP) conversion, and the Paso Pe sale. A large fair-value loss on digital assets also weighed on its results.
Foolish bottom line
So, clearly, this is not a low-risk stock. For that reason, Keel may be best suited for investors who can handle sharp price swings and judge progress by project milestones, lease signings, and development updates.
On the one hand, the company’s 2.2 GW pipeline, progress at Panther Creek, Sharon, and Moses Lake, and US$533 million liquidity position give it the strength it needs to grow. On the other hand, its widening losses and early-stage infrastructure buildout mean expectations need to stay realistic.
That said, for investors comfortable with risk, Keel stock still looks attractive as it’s aimed at markets that could keep expanding for years.
