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Political pressure on electricity rates creates uncertainty for utility stocks in 2026, despite the sector delivering 16% returns so far this year driven by AI data center demand.
A recent Bank of America survey reveals a significant shift in investor sentiment, with 42% of global fund managers now forecasting that international stocks will be the top-performing asset class in 2026. This pivot away from a U.S.-centric view comes amid a complex global economic landscape, where a persistent bullish narrative on U.S. artificial intelligence clashes with a weakening dollar and mixed domestic economic signals.
A Bank of America survey shows global fund managers' cash reserves have fallen to a record low, signaling extreme bullishness. This has triggered a historical contrarian indicator to sell equities, suggesting markets are increasingly vulnerable to economic shocks.
Angeleno Group and Energy Impact Partners have committed AUD$50 million to IND Technology, a firm specializing in grid reliability. The investment is aimed at accelerating the global deployment of IND’s Early Fault Detection (EFD™) system to enhance the stability and safety of electrical infrastructure.
OGE Energy announced a $6.5 billion, five-year investment plan to upgrade its infrastructure. The move aligns the utility with rising energy demand from the AI sector, boosting its growth outlook and attracting investor attention.
Dominion Energy's stock has declined 21% over the past five years, creating a disconnect with its 12% average annual EPS growth. This underperformance comes as the broader utility sector is being repriced as a growth industry, driven by immense power demand from AI data centers.