AI Boom Drives Surging Demand for Utility Sector Stocks

As artificial intelligence technology demands more power, utility companies are seeing a significant increase in investor interest and stock performance.

• Investors are turning to utility stocks as a strategic investment to capitalize on the AI-driven surge in energy demand.
• Utility stocks, traditionally seen as stable but unexciting, are now at the forefront of the AI boom due to their critical role in powering data centers.
• Significant increases in electricity demand from AI applications are leading to new investments and growth in the utility sector.
• Goldman Sachs and other financial firms are creating investment baskets focused on utilities and data center equipment to leverage the AI expansion.
• Experts warn that the U.S. power grid may face challenges handling the increased load, prompting investments in grid infrastructure upgrades.

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The Japan Times Fortune Financial Post