Wells Fargo stated that the AI investment boom and data center expansion are increasingly influencing the overall performance of US stocks. The bank believes that as computing power demand continues to rise, industries related to power supply and infrastructure construction will receive more direct support, with the utilities sector benefiting the most.
Public utilities benefit more directly
Wells Fargo points out that data center construction requires a stable and continuously growing power supply, which is giving utilities greater attention in the current AI industry chain. Compared to software, chips, and other popular sectors that have already been repeatedly traded in the market, the benefits for power-related companies are more direct and easier to see in new projects.
The bank believes that AI demand will not only drive chip and server procurement, but will also continue to propagate to the power grid, transmission, generation, and related infrastructure. As large technology companies increase capital expenditures, the importance of the power system's carrying capacity is also rising.
Data centers drive infrastructure development
The report notes that data centers have become a crucial platform for AI investment. Both model training and inference services require higher-density computing power deployment, which typically translates to higher electricity consumption, cooling needs, and investments in land and equipment.
- AI computing power expansion drives data center construction
- Data center construction increases power and supporting infrastructure demand
- The utilities sector may receive greater support.
The AI-driven market trend is spreading to more sectors.
Against this backdrop, market attention to data center-related assets is expanding from the performance of individual technology companies to the broader infrastructure chain. Wells Fargo believes this shift is changing how some sectors perform in the stock market.
From this perspective, the main theme of AI trading is gradually extending from front-end hardware and platform companies to the energy, power transmission, and data center supporting sectors. The impact of AI on the stock market is no longer limited to a few large-cap tech stocks.
