CWEN - The Unknown Picks And Shovels Of A.I.
2024-05-17 12:44:40 ET
Summary
- The A.I. boom has led to increased investment in products and services that fuel A.I., such as data centers and GPU makers like Nvidia.
- Energy producers have not been priced in as key suppliers of A.I., despite the significant increase in electricity demand from data centers.
- Data center development is location-specific, with areas like Northern Virginia experiencing rapid growth, presenting opportunities for energy producers in those regions.
Anytime there is a major economic trend, there are multiple ways in which to capitalize. One of the most famous examples would be picks and shovels in the gold rush. Although not gold themselves, picks and shovels were a key piece of the supply chain in the pursuit of gold.
Similar logic has been applied to the artificial intelligence ("A.I.") boom. In addition to companies that execute the A.I. directly, there has been a surge of investment in many of the products and services that fuel A.I. Many of these are already known to the market and have priced up thousands of percentage points. Others are less known, with one in particular not being priced in at all....
The Unknown Picks And Shovels Of A.I.