AI Needs Power: Invest in High-Yield Utility Stocks to Ride the Electricity Demand Wave
During Brookfield Renewable's (NYSE: BEP)(NYSE: BEPC) fourth-quarter 2024 earnings call, the company's CEO stated very clearly that, "Following several decades of modest electricity demand growth, we are experiencing a dramatic shift in demand driven by the AI revolution." That's basically the same sentiment that's being expressed by electricity providers across the board and it highlights an opportunity for investors broadly and income investors specifically.Brookfield's CEO went on to explain that he believes artificial intelligence (AI) is "one of, if not the most, significant advancement in technology in our lifetime." That may very well be true, but history is filled with massive technological advances and the investment lessons aren't great. Very recently there was the advancement of electric vehicles (EV), with Tesla effectively creating an entire new industry.Image source: Getty Images.Continue reading
During Brookfield Renewable's (NYSE: BEP)(NYSE: BEPC) fourth-quarter 2024 earnings call, the company's CEO stated very clearly that, "Following several decades of modest electricity demand growth, we are experiencing a dramatic shift in demand driven by the AI revolution." That's basically the same sentiment that's being expressed by electricity providers across the board and it highlights an opportunity for investors broadly and income investors specifically.
Brookfield's CEO went on to explain that he believes artificial intelligence (AI) is "one of, if not the most, significant advancement in technology in our lifetime." That may very well be true, but history is filled with massive technological advances and the investment lessons aren't great. Very recently there was the advancement of electric vehicles (EV), with Tesla effectively creating an entire new industry.
Image source: Getty Images.
