If you’ve been watching the stock market lately, you know that AI is the talk of the town. But what if I told you that the real opportunity lies not in the AI companies themselves, but in the energy sector that powers them?
That’s right. While everyone is busy chasing the next big AI stock, the smart money is quietly positioning itself to profit from the massive surge in energy demand that AI is creating. And if you act now, you can ride this wave to potentially life-changing gains.
As my good friend Eric Fry recently pointed out in his article, “AI Will Generate Gains for All Kinds of Energy Stocks“, tech giant Alphabet Inc. (GOOGL) is investing billions in new data centers to power its AI ambitions. The result? A whopping 17% increase in data center electricity consumption and a 50% surge in carbon emissions since 2019.
And that’s just one company. As Eric notes, “The spike in electricity demand due to AI will only continue to increase, especially as tech giants like Google pour their resources into creating newer and bigger data centers.”
So what does this mean for you as an investor? It means that now is the time to position yourself in both renewable energy and natural gas stocks. Because as Eric explains, while renewables are part of the long-term solution, they can’t meet the surging demand in the short term due to infrastructure challenges.
“This infrastructure lag means that while renewables are part of the long-term solution for energy demand, they can’t single-handedly meet the surging demand in the short term.”
Eric Fry
But here’s the kicker: renewable energy stocks have been beaten down so badly over the last three years that they’re now primed for a massive rebound. As these companies start converting their profit potential into real profit growth, we could see their stock prices soar.
Meanwhile, natural gas is set to fulfill a staggering 60% of the increased energy demand from AI, according to Goldman Sachs. That’s why Wells Fargo is projecting a seismic shift in gas consumption, with daily demand potentially surging by 10 billion cubic feet by 2030.
The bottom line? As Eric puts it, “We investors do not need to ‘choose sides.’ We can invest opportunistically in both renewables and fossil fuels.”
So here’s what I recommend:
- Take a hard look at your portfolio and make sure you have exposure to both renewable energy and natural gas stocks. If you don’t, now is the time to start building those positions.
- Keep a close eye on the major AI players like Alphabet, Amazon, Microsoft, and Meta. Their investments in data centers and AI infrastructure will continue to drive energy demand higher.
- Stay tuned to Market Monitors for more in-depth analysis and specific stock recommendations in the energy sector. We’ll be keeping a close eye on this trend and alerting you to the best opportunities as they arise.
The AI energy boom is here, and it’s only going to get bigger. Don’t miss out on this once-in-a-decade opportunity to power your portfolio to new heights.
P.S. For Eric Fry’s latest recommendations on how to play both sides of the energy sector, learn how to join him at Fry’s Investment Report. Trust me, you won’t want to miss his insights.
