| A Radical New AI Development |
Artificial intelligence hasn’t just fueled upside in tech stocks.
It’s also fueling massive upside in energy stocks.
But this is just the start.
As noted by Reuters, “some power companies are projecting electricity sales growth several times higher than estimates just months earlier. Nine of the top 10 U.S. electric utilities said data centers were a main source of customer growth, leading many to revise up capital expenditure plans and demand forecasts.”
Goldman Sachs is bullish on the industry, estimating about 47 gigawatts (GW) of additional power generation capacity will be needed to accommodate growth.
In addition, as noted by Zero Hedge:
“In addition, UBS expects the AI data center construction boom to generate structural tailwinds for the U.S. economy starting in 2026. In a recent conversation, one asset manager backing a mega data center project in Texas explained it's going to be sprint mode for the industry through the end of the decade. Adding this all up is not rocket science, and that's why a new UBS note maintains a bullish outlook on data center-driven power demand, particularly for natural gas-linked utilities and midstream names.”
“The firm added that natural gas infrastructure is quickly emerging as the most reliable backbone infrastructure for this explosive growth, creating a structural tailwind for nat-gas-levered midstream names.”
That could have a substantial impact on energy stocks such as:
PG&E Corporation. (PCG)
PG&E Corp. is a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers.
It specializes in energy, utility, power, gas, electricity, solar and sustainability. It’s also the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California.
Sempra Energy (SRE)
With a yield of 3.33%, Sempra is a leading North American energy infrastructure company focused on delivering energy to nearly 40 million consumers.
As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving the energy resilience of some of the world's most significant economic markets, including California, Texas, Mexico and global energy markets.
There are substantial reasons to buy and hold Sempra long term.
For one, while we wait for Sempra to push aggressively higher on data center power demand, we can collect its current yield of 3.33%.
Two, Goldman Sachs is bullish on the industry, estimating about 47 gigawatts (GW) of additional power generation capacity will be needed to accommodate growth. All of which is a substantial catalyst for stocks, such as Sempra.
Alerian MLP ETF (AMLP)
Or, if you’d rather diversify at a lower cost, there are ETFs like the Alerian MLP ETF (AMLP).
With an expense ratio of 0.85%, AMLP delivers exposure to the Alerian MLP Infrastructure Index (AMZI), a capped, float-adjusted, capitalization-weighted composite of energy infrastructure Master Limited Partnerships (MLPs) that earn the majority of their cash flow from midstream activities, as noted by ALPSfunds.com.
AMLP also holds a position in energy stocks such as Energy Transfer, Enterprise Products Partners, Western Midstream, Sunoco, Hess Midstream, and Cheniere Energy Partners to name a few of the top ones.
Trending Now: Your AI Income Playbook Awaits...
Imagine getting regular dividend payouts from the world's most innovative AI companies...
And watching your income grow year after year, as these firms unleash breakthrough after breakthrough...And knowing you're profiting from the greatest technological revolution of our time... while also securing a dream retirement!
Well, income investing legend Marc Lichtenfeld has turned that dream into a reality.
Today, he wants to give you his AI Income Playbook... FREE of charge!
Inside, you'll discover Marc's favorite AI dividend stocks...
Complete with their names, ticker symbols, and full breakdown of their massive income potential.
Simply click here now to claim your copy.
But please hurry! There's no guarantee how long Marc will keep this research online...
So request your playbook now - before this opportunity slips away!
Found this helpful? Share it with others.
Written by Ian Cooper