1. Utilities sector outpaces Big Tech in 2025, up 23.4% year-to-date. 2. Increased AI and data center demands drive utility stock performance. 3. Utilities forecast significant growth due to rising electricity demand. 4. Key players include Entergy and Constellation, capitalizing on high demand. 5. Utilities remain undervalued, trading 15-20% below market average.
The utilities sector's rise could positively influence S&P 500 due to demand dynamics. Historically, increased investor focus on sectors like utilities has often led to broader market gains.
The article highlights fundamental changes in utility demand tied to AI growth, suggesting a shift in investment strategies that could benefit the entire market, including the S&P 500.
The ongoing transition to AI and electrification suggests sustained demand for utilities over years. Past trends reveal long-term growth in sectors adapting to technology changes.