Wells Fargo tells investors to get very long utility stocks on AI power demand

Investors ought to increase their exposure to utility stocks as companies build out energy-guzzling data centers to power an artificial intelligence boom, Wells Fargo advised clients. The bank initiated coverage of 33 companies across the utilities and power space, assigning a raft of stocks overweight ratings. "Power demand and tailwinds are structural, not cyclical, driving growth higher for the sector, which on a risk-adjusted basis looks favorable vs. S & P [500] earnings growth," analyst Shahriar Pourreza wrote Monday. AI-related investments could hit $375 billion this year and top $500 billion by the end of 2026, according to UBS . The flood of funds to the new technology has raised eyebrows among market experts, stoking concerns that the so-called AI bubble will eventually burst. Bu