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While Nvidia (NVDA) has grabbed the headlines this year — most recently when its market cap topped $3 trillion — the AI halo effect has boosted an unlikely industry.
Utilities are typically known as one of the more boring sectors of the market. In a regulated industry whose rate structures are determined by states, power companies aren’t known for big growth. They’re seen as defensive because demand for electricity remains relatively constant through economic cycles.
Enter AI and the nearly insatiable power demand that comes with data centers.
“With the AI rush emerging here, power companies are the ones selling shovels into this gold rush,” Sophie Karp, KeyBanc equity analyst, told Yahoo Finance.
The S&P 500 Utility Index has rallied more than 10% this…
