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 ...