Last week, CNBC’s Jim Cramer interviewed Donald Trump at the NYSE and one thing stuck out for me: The President-elect said:
We’re going to be way ahead of AI, and we’ve got to produce tremendous amounts of electricity. It’s unbelievable when you think that we need more than twice what we already have. If you think, that’s for a specific industry, but we’ll be able to do it.
It’s going to be a tough task, as I’ve been writing for some time.
Here is a chart from Morgan Stanley this week highlighting the difficulty in hitting power-generation goals.
We’ve seen a dip in power-generation companies, in part due to rising Treasury yields (which hit the rate-sensitive utility sector) but it’s going to be an interesting battle between different technologies. My inclination is to see natural gas perform very strongly as those are the easiest facilities to build.