Dec. 15 at 4:31 PM
Evercore ISI initiated coverage on seven industrial stocks with "Buy" ratings, highlighting companies focused on power and automation technologies to meet the rising demand for electricity, driven by AI data centers and reshoring manufacturing. The stocks include Siemens Energy , GE Vernova , Hubbell and Schneider Electric , as well as automation technology providers Honeywell , Emerson Electric , and Siemens.
The firm adopted a "picks and shovels" strategy, which refers to providing essential tools to support a trend, similar to selling mining equipment during the California Gold Rush. The idea is that these companies will benefit from sustained demand for electricity, driven by AI growth and reshoring.
According to Evercore, U.S. electricity demand is projected to grow 3% annually over the next two decades, up from the 1% annual growth over the last 20 years. This surge in demand is expected to trigger the strongest equipment cycle in 20 years.
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