European stock pickers are shifting focus to utilities, data providers, and miners for AI investments.

From Investing.com: 2024-05-22 01:10:30

European stock pickers are turning to utilities, data providers, and miners to tap into the next wave of the AI boom, diverging from the previous focus on Nvidia and ASML. Demand for data centres is surging, with energy consumption expected to double by 2026, creating opportunities for utility companies.

As the AI market matures, investors are focusing on companies that will benefit long-term from AI advancements, such as utilities and data centre suppliers. Some European companies are quietly using AI to develop innovative products, offering more attractive valuations. Miners, especially copper producers, are also attracting interest due to increased demand from data centres and AI applications.

Copper prices have hit record highs due to a shortage of materials for delivery, with demand expected to increase by one million tons by 2030 from data centres and AI. This surge in demand for copper is part of the larger AI enthusiasm, showing the interconnected nature of the technology sector and commodity markets.



Read more at Investing.com: Analysis-Europe stock pickers go old-school to ride the next wave in AI By Reuters