These 5 stocks will power the AI revolution as data centers spread and electricity demand doubles, says Bank of America

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The rise in power demand for data centers is also whetting investors' appetite for grid tech providers, energy companies and some commodity names.

When it comes to investing in artificial intelligence, investors are beginning to turn to companies beyond tech — and instead to real estate, energy and utilities. The rise in power demand for data centers — which are booming from the need to support a new world of AI technologies — is also fueling demand for the providers of data center parts.

Management is raising its own capital expenditures for the first time in a decade to meet the power demand for data centers, BofA added. Caterpillar stock has 7.6% potential upside, according to BofA's price target of $385. Shares have added nearly 20% this year, but are down 3% over the past week. Buy-rated REITs Digital Realty Trust and Equinix are "starting to capture the very early beginnings of AI demand, but ...

 

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