Utility stocks offer AI exposure and a hedge against a slowing economy at a good price, Goldman says
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Utility stocks are an affordable way to gain exposure to the artificial intelligence trend and hedge against a slowing economy. Utilities have gained nearly 18% in the past three months to become the best performing sector in the S & P 500. The sector's long-term growth prospects are improving due to rising electricity demand from data centers and AI. The utilities' capital expenditure is expected to increase by roughly 36% over the next three years. NextEra, Xcel Energy, Sempra, and Southern Company offer the best exposure to the data center power demand surge. Utilities also offer a way to play defense against a slowing economy. Interest rates, however, are a potential headwind for the sector.

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https://www.cnbc.com/2024/06/01/utilities-offer-ai-exposure-hedge-against-slowing-economy-goldman-says.html