• One Industry That Will Outperform in 2025: Utilities

  • Sep 25 2024
  • Length: 4 mins
  • Podcast

One Industry That Will Outperform in 2025: Utilities

  • Summary

  • https://www.alainguillot.com/utility-industry/ What do artificial intelligence, cryptocurrencies, and electric vehicles have in common? They all consume an enormous amount of electricity. Companies in the AI, crypto, and EV sectors will struggle to secure enough electricity to maintain normal operations. Electricity demand is so high that Microsoft is considering building a nuclear plant to meet its own power needs. Utilities have performed exceptionally well over the past 12 months, and they are poised for another strong year. Utilities uptrend during 2024. +26% It’s been a nice ride. 26% gain during the last 12 months. It’s been a great ride, with a 26% gain over the last 12 months. As AI continues to expand, energy consumption is expected to increase significantly. The energy required to run AI tasks is accelerating at an annual growth rate of 26% to 36%. It’s important to note that neither fossil fuels nor renewable energy sources alone are sufficient to meet the growing energy demands. Therefore, the energy and renewable energy sectors are also likely to see significant gains in 2025 and beyond. Utilities are also well-protected from competition; you can’t simply decide to open a new electricity plant overnight. It typically takes anywhere from four to ten years to establish a new utility company, with enormous costs involved. As a result, utility companies are expected to continue their bullish trend for the foreseeable future.

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