Jun. 22 at 7:22 PM
I’m still long and constructive on
$XLU and the broader utilities complex here.
This isn’t the most exciting part of the market, but it’s becoming one of the most structurally important. Utilities are quietly turning into a “second layer” AI trade - because no matter how advanced models get, power demand doesn’t go away, it compounds.
$NEE $SO $DUK $CEG AEP D VST are all different expressions of the same underlying reality: grid load is rising, not flattening.
What’s interesting is how this sector is being re-rated - not as pure defensive yield, but as infrastructure tied directly to data center expansion and AI compute growth.
If AI is the demand shock, utilities are the bottleneck pricing mechanism.
