Investment Strategies

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Q: What industries might be investment opportunities in the near future?

A: There is a case to be made for electric equipment and electrical power generation.

On March 7, 2024, The Washington Post ran the following headline: Amid explosive demand, America is running out of power.1

There are three new major factors which have simultaneously combined to make the demand for electricity skyrocket:

  1. Artificial intelligence (AI) data centers require huge amounts of electricity.
  2. EV (electric vehicles) are multiplying rapidly, and they all run from a fat electric cord.
  3. Crypto-mining currencies require a lot of electricity to mint and process transactions.

The state of Georgia recently announced that it was expecting – not a 17% increase in electricity demand – but a 17-times increase.  Jason Shaw, chairman of the Georgia Public Service recently said, “When you look at the numbers, it is staggering.”1

“The simultaneous growth of electric cars and AI, both of which need electricity, both of which need voltage transformers – I think, is creating a tremendous demand for electrical equipment and for electrical power generation.”  Elon Musk2

Siemens Energy CEO Christian Bruch, recently told shareholders at an annual meeting that electricity needs will soar, “That means one thing: no power, no AI, Or, to put it more clearly: no electricity, no progress.”3

Companies that fill the void in the electricity marketplace may offer an investment opportunity.

A discussion with your trusted advisor could be time well spent.

1https://www.washingtonpost.com/business/2024/03/07/ai-data-centers-power/

2https://newatlas.com/technology/elon-musk-ai/

3https://www.investorvillage.com/smbd.asp?mb=5028&mn=145128&pt=msg&mid=24770967

For more information about Aileron Investment Advisors visit www.investwithaia.com.

Investing involves risk, including the potential loss of principal. This is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Securities and advisory services are offered through Madison Avenue Securities, LLC (“MAS”), a registered investment adviser & member FINRA/SIPC.  MAS and Aileron Investment Advisors are not affiliated companies.  03/24

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