Apple (AAPL) May Have Kicked Off a Utility Stock Bonanza

24/7 Wall St. Key Points:

• Apple’s (NASDAQ: AAPL) $500 billion U.S. investment will heavily fund AI-focused server farms, increasing domestic energy demand and creating growth opportunities for utility providers.
• Utilities like Dominion Energy (NYSE: D), Entergy (NYSE: ETR), and Vistra (NYSE: VST) are well-positioned to benefit from rising electricity needs, offering stable dividends and exposure to the AI infrastructure boom.
• The shift away from wind energy under current U.S. policies is driving renewed investor interest in solar power and small-scale nuclear as key sources for future server farm energy demands.
• Apple is one of the greatest investments of all time, but The Next Nvidia stocks look much better headed into 2025. Click here to see what has the smart money so excited right now.

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Transcript:

[00:00:04] Doug McIntyre: Well, something else that they’re doing is that a lot of this money is going to go towards server farms

[00:00:09] Lee Jackson: In Houston, I saw a big AI server production facility.

[00:00:15] Doug McIntyre: I’m going to tell you something that I believe very strongly. US AI companies are going to have server farms in the United States, period. Okay. So I don’t care who I am. If I want to make an announcement about making a big investment in US infrastructure, I’m going to talk about servers first. These big tech companies do not want their server farms in China.

[00:00:39] Doug McIntyre: No, absolutely not. They probably don’t want their server farms in Canada. They want their server farms in the United States. And I think that when people talk about Microsoft’s (NASDAQ: MSFT) investment, Google’s (NASDAQ: GOOG) it’s a lot of money, but in the olden days, you would take that money and you’d go to the place with the cheapest electricity.

[00:00:57] Doug McIntyre: Or, you go to the place where you could say, I’m going to save money by plugging my servers into, the electricity grid in Mongolia. AI is such a mission critical part of these tech companies right now. That, and then you pointed this out to me, this makes utility stocks look great.

[00:01:19] Doug McIntyre: Owned by your great grandparents. I love utility stocks right now because. There is not going to be location of AI server farms outside the United States.

[00:01:33] Lee Jackson: No, I think you’re exactly right and it’s interesting because they’re talking about small nuclear power. They’re talking about, net gas generated power out in the Permian and servers, server farms there.

[00:01:47] Lee Jackson: And, yeah, I mean, when they’re really gobbling the electricity up, they use as much as a small town does. And so, they have to keep the locations here for, not only just for electricity and power needs, but for safety and security.

[00:02:05] Doug McIntyre: It makes me love the utilities, though. Some of the big names in utilities I really, like now, and they were sort of very boring for a while.

[00:02:13] Doug McIntyre: Well, they were very boring, but some, and some of the, they had a big run last year. because people started to front run this energy trade and some of them have backed up. One of the ones that we like a lot is Dominion Energy, which is symbol D on the New York exchange. And they’re down in the South Carolina and the Carolinas, and it pays us.

[00:02:35] Doug McIntyre: Solid four and a half plus dividend. It’s huge. They have a ton of customers and you know That’s one to look at but again some of the other ones have had a big run But they backed up recently which gives folks a better chance to get involved and for many people It’s a safer way to play AI.

[00:02:54] Doug McIntyre: Yeah, it is but a couple of the other ones you like utilities.

[00:02:57] Lee Jackson: Well, Entergy is probably a good one, and I think the symbols ETR on that, the Vistra, which, is kind of in the Washington DC area and in the, where there is a ton of server farms.

[00:03:13] Lee Jackson: A lot.

[00:03:14] Doug McIntyre: It may be the biggest concentration of server farms in the country.

[00:03:17] Lee Jackson: Yeah, and I think that’s one of the reasons they’re trying to move away from that because they’re just really sucking the electricity there. And it’s going to be interesting to see how they pull this off. I mean with Musk’s gigantic server farm in Memphis, which is going to be just north of where I am. Where are they going to grab all the power for that?

[00:03:40] Doug McIntyre: I’ll tell you but wind is being crippled by the current administration So I would not look to win for, additional electricity. To me, this makes solar look good.

[00:03:51] Lee Jackson: think solar gets a much better look than wind because the wind is just, the people see the huge blades piled in the ground that they’re going to have to cover up and bury.

[00:04:02] Lee Jackson: And when they break down, there’s it’s all sorts of issues, getting up to fix them. And I think people just don’t like it. And the wind doesn’t always blow. Now the sun doesn’t always shine, but at least it’s not such a hideous thing across the landscape as wind farms. And I think you’re right. I think Trump has zero interest in the administration and wind farms.

[00:04:21] Doug McIntyre: Right. Which is one of the reasons I love solar, because the modular nuclear reactors, the smaller ones, those probably won’t be tested, approved, up to speed for four or five years, the problem with hydropower is that all the big lakes and and rivers are drying up. So I don’t know that hydro has. So anyway, to me, it makes me like solar.

[00:04:42] Lee Jackson: I like it too. And what we’ll do is we’ll come back and really get some good names that we can show folks that, and also some of these ones that are more, some of these, energy companies that are more scaled to renewables, they pay a solid dividend as well.

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