The post Energy infrastructure tipped to be the next big bet for AI investors appeared on BitcoinEthereumNews.com.

According to analysts ‘ projections, energy infrastructure is expected to be the next big area of focus for AI investors as they seek to power the highly energy-consuming data centers. This comes as the demand for AI products and services continues to grow, subsequently pushing the demand for electricity to power data centers. According to the Financial Times, this is creating a new class of attractive businesses, that is energy providers. As the tech firms become overvalued and too much for some investors, experts posit that there are other options in the AI wave. They argue that energy-related firms will be the next bet, although they may not be “as flashy as Nvidia’s semiconductors.” Energy infrastructure firms tipped to do well Reports show that energy consumption at AI and crypto mining data centers has been on an increase creating scope for the sector to look for sustainable energy use and green energy. James West, a senior analyst at Evercore ISI told the Financial Times that investors were looking for “a next derivative in AI.” “The technology investors that are calling us are asking about power.” West. “This is the next big bull market, especially as you have some of the other AI derivatives like the chips running out of capacity,” added West. This comes as tech giants like Nvidia, a key player in the AI sector saw a decline in share price performance after its latest earnings report in August. According to West, it is hard for Nvidia to grow its earnings further because “their capacity tightens.” West highlighted his top picks, that are likely to do well in the energy sector if the shift occurs to energy firms. He cited GE Vernova, a power and energy division of General Electric, spun off into a separate entity. He also mentioned…

---

Filed under: News - @ September 16, 2024 10:17 pm