New York, NY – As excitement around artificial intelligence (AI) continues to grow, investors are turning their attention to utilities companies for potential gains. Wells Fargo has identified a trend where AI data centers will require substantial amounts of electricity, with natural gas likely to play a vital role in meeting these power needs.
The Utilities Select Sector SPDR Fund (XLU) has seen a 6.8% increase in May, outperforming the Technology Select Sector SPDR Fund (XLK), which experienced a 5.2% rise during the same period. This surge in popularity for utilities is attributed to the increasing demand for electricity in AI-related operations.
Wells Fargo has compiled a list of dividend-paying utilities that could benefit from the excitement surrounding AI. These companies stand to gain from the growing importance of electricity in AI infrastructure, presenting a unique investment opportunity for those looking to capitalize on this trend.
In another development, meme stock favorites GameStop and AMC experienced significant gains in extended trading on Monday. The resurgence of “Roaring Kitty” sparked a rally in these stocks earlier in the day, with GameStop climbing over 7% and AMC soaring nearly 15%. The increased volatility led to multiple interruptions in trading for GameStop throughout the day.
Meanwhile, Games Global Limited announced the postponement of its initial public offering (IPO) scheduled for May 14. The online casino game supplier cited concerns over market conditions as the primary reason for delaying the IPO. The company had planned to issue 14.5 million shares priced at $16 to $19 per share.
In the financial markets, stock futures showed minimal changes on Monday, indicating a cautious approach among investors. The uncertainty surrounding various economic factors has contributed to the lack of significant movements in stock futures, reflecting a wait-and-see attitude among market participants.
Overall, the intersection of AI technology, stock market volatility, and IPO postponements highlights the dynamic nature of the financial landscape and the importance of staying informed and adaptable in today’s ever-changing market environment.