Artificial intelligence is reshaping energy markets, infrastructure spending, and portfolio construction. Trends driving the market include AI’s physical requirements, such as power, cooling, and grid stability. Small- and mid-cap companies are quickly moving up the cap table, offering opportunities for investors.

Energy reliability is crucial for data centers, leading to a shift towards nuclear power. This has accelerated growth for specialized players in the nuclear industry. Efficiency inside data centers is becoming increasingly important as AI workloads expand, drawing investors to companies with cutting-edge technology and limited competition.

Actively managed ETFs are gaining traction as they aim to identify companies in the AI space earlier and hold them through various growth phases. However, risks exist, particularly with financially weak companies leveraged to electricity demand. Van Eck advises against overweighting AI themes in portfolios, emphasizing the importance of active rebalancing and clear risk management.

As investors bring the AI theme into their portfolios in 2026, experts recommend a targeted approach to avoid chasing peaks or panicking at drawdowns. This includes understanding the risks associated with AI investments and actively managing portfolios to stay invested without excessive exposure to volatility.

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1. Retail sales in the U.S. dropped 1.3% in May, a larger decline than expected. This is the second consecutive month of decline, signaling a potential slowdown in consumer spending.

2. The Federal Reserve announced plans to raise interest rates twice by the end of 2023, as the economy continues to recover from the pandemic. Inflation is also expected to rise.

3. Tesla CEO Elon Musk announced that the company will start accepting Bitcoin as payment once miners use more clean energy. This comes after Tesla suspended Bitcoin payments in May due to environmental concerns.: Small companies rising quickly to rival Big Tech as AI ‘s best trade