From Yahoo Finance: 2025-04-20 09:18:00

Investment firm Morgan Stanley predicts electricity demand will stay strong due to data centers, despite potential recession from Trump’s tariff policies. Industrial demand may dip temporarily, but reshoring manufacturing to the US could help. Bloomberg forecasts US power demand from data centers to increase by 20-40% in 2025.

Morgan Stanley also forecasts a tenfold increase in electricity consumption from artificial intelligence by 2028. Energy stocks historically remain resilient during economic downturns, with just a 0.2% average demand drop since 1960. The firm notes utilities as favorable investments during recessions due to their defensive nature.

Despite potential challenges, Morgan Stanley is optimistic about AI infrastructure spending from tech giants like Meta, Amazon, and Alphabet. These companies are investing heavily in AI infrastructure to maintain a competitive edge. The selection of AI stocks in this article was based on news, stock analysis, and hedge fund popularity as of Q4 2024.

NVIDIA Corporation is facing potential hits from US licensing requirements for AI chip exports, impacting quarterly earnings by up to $55 billion. Despite this, NVDA ranks 4th on the list of top 10 AI stocks. While NVDA shows promise, other AI stocks may offer higher returns in a shorter timeframe. For an AI stock with significant upside potential trading at less than 5 times earnings, check out the report on the cheapest AI stock.

Read more: NVIDIA Corporation (NVDA) Faces AI Export Hit but Demand Stays Strong