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Why Electrical Equipment Makers, Including POWL and GEV, Are Climbing

Multiple electrical equipment makers are advancing significantly today after it was reported that three major companies will invest up to $500 billion in AI infrastructure in the U.S. in the next four years.

Among the electrical equipment makers rallying on the news are GE Vernova (GEV), Powell Industries (POWL), and Quanta Services (PWR). The data centers that create and provide AI require a great deal of electricity to function. GEV, POWL, and PWR are advancing 3.5%, 9%, and 4.6%, respectively.

A Huge Investment in the Expansion of AI

Oracle (ORCL), Japanese investment bank Softbank, and OpenAI have agreed to plow up to $500 billion into AI infrastructure in the U.S. in the next four years, President Donald Trump is expected to announce troday. The companies will initially spend $100 billion on the initiative.

AI Utilizes a Great Deal of Electricity

Spurred by the AI Revolution, data centers’ power consumption will grow 160% by 2030, Goldman Sachs predicted last May. And Doug Burgum, Trump’s incoming energy czar, recently stated that the U.S. needs to generate more electricity to support AI.

Of course, meaningfully increasing the amount of electricity produced often requires more power stations, and power stations utilize electrical equipment. Consequently, the rally of electrical equipment makers today was likely spurred by the news about the upcoming, large investment in AI infrastructure.

While we acknowledge the potential of POWL, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than POWL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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