Stocks That Could Benefit From AI-Driven Power Demand
21 minutes ago
Power demand for data centers in the U.S. is expected to triple by 2030, fueled by artificial intelligence applications, Mizuho Research analysts said.
The rise in demand could drive growth for electric utilities stocks, the analysts said, as well as companies in the renewable energy industry, and more.
Electric utilities stocks such as Constellation Energy (CEG), Duke Energy (DUK), and NextEra Energy (NEE) could be poised to benefit, the analysts said, as well as infrastructure providers including Equinix (EQIX).
The analysts said they expect AI to increase demand for renewables like solar and wind energy as well, given the tech sector’s climate commitments. They added that based on their models, clean energy resources could supply more than half of electricity in the U.S. by 2030, supported by heightened demand driven by AI data centers.
First Solar (FSLR), GE Vernova (GEV), and Nextracker (NXT) are among the stocks that could get a boost from this trend, they said.
The analysts also said natural gas demand is expected to rise in the near term to keep up with the growing power needs of data centers.
They named Chesapeake Energy (CHK) and EQT (EQT) as natural gas stocks that could gain, as well as infrastructure picks including Kinder Morgan (KMI) and Williams Companies (WMB).
Palo Alto Networks Rises Ahead of Earnings Report
2 hr 5 min ago
Palo Alto Networks (PANW) is set to report results for its fiscal fourth quarter after markets close on Monday, with investors likely watching for a strong 2025 outlook and updates on its “platformization” strategy.
Analysts project revenue to grow to $2.16 billion from $1.95 billion a year ago, according to estimates compiled by Visible Alpha. Net income is expected to come in at $234.97 million, or 66 cents per share, a slight increase from the year-ago period but also a sequential drop.
Spending fatigue among Palo Alto Networks’ customers has been a major theme of the company’s results in recent quarters, signaling headwinds in the cybersecurity industry. Palo Alto Networks’ guidance has been used as an indicator for the sector.
Palo Alto Networks has been leaning into its platformization efforts, where it consolidates its cybersecurity services on its platform and bundles offers, a bid to become a one-stop shop and offset spending fatigue.
While Palo Alto Networks has indicated that platformization has been positively received by customers, the recent global outage caused by a faulty CrowdStrike (CRWD) update could raise questions about the outlook for the market.
Palo Alto shares were up 2.2% Monday afternoon, trading near their highest level since February.
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AMD Expands Its Reach Into AI
4 hr 38 min ago
Advanced Micro Devices (AMD) took another big step in expanding its reach into artificial intelligence (AI) with the purchase of data center infrastructure provider ZT Systems.
AMD said the cash-and-stock deal was valued at $4.9 billion, which includes a contingent payment of $400 million if certain milestones are reached after the close.
AMD CEO Lisa Su called the acquisition “the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers.” Su said that adding ZT Systems “will significantly strengthen our data center AI systems and customer enablement capabilities.”
AMD shares were up nearly 2% in early trading Monday.
Futures Point to Flat Open for Major Indexes
6 hr 19 min ago
Futures tied to the Dow Jones Industrial Average were fractionally lower.
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S&P 500 futures were up less than 0.1%.
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Nasdaq 100 futures were also up less than 0.1%.
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