Do you have energy-sector stocks in your portfolio that could benefit from the growth of large data centers and AI?
I read an interesting post here about Siemens Energy ($ENR.DE), which has surged this year and is incredibly strong. These companies will now be hugely important for firms that build data centers and develop their own AI.
This sector needs to grow at about the same rate as AI companies; otherwise there won’t be enough energy and it won’t be able to operate.
I have Chevron as a dividend stock
I only hold shares of $NEE, and it's questionable whether NextEra Energy will actually benefit significantly from AI, since the benefits of this technology for a predominantly regulated energy business remain rather uncertain for now.
As far as I know, Siemens Energy (SE) focuses on fossil fuels, so I hope the energy sector will move more toward nuclear power—ideally modular reactors. SE was loss-making until recently and now has net margins of only about 3%. It more or less makes turbines at a loss and mainly earns from service. I must admit I don’t understand that growth at all, so I’m quite likely overlooking something fundamental.