Utilities and AI: A Powerful Combination?

Supported by lower bond yields and subdued inflation, utilities stocks performed much better in the first half of 2024 compared to their dismal performance in 2023. The S&P 1500 Utilities Index led the market in May, fueled by optimism from artificial intelligence (AI) and data center advancements. In this recording, CFRA’s Senior Equity Research Analyst, Daniel Rich, CFA, discusses the expected impact of artificial intelligence (AI) and data centers on U.S. electricity demand. He highlights the potential benefits for fully regulated utilities in electric generation and transmission infrastructure, as well as opportunities for independent power producers and nuclear operators.