As I mentioned earlier, the main bottleneck won't be the chips themselves, but basic transformers and everything related to powering our "casino."
After dozens of hours of analysis, I've selected a few companies that look like top contenders in this space: strong contracts, solid financials, and long-term leaders in their sector 💡
• Eaton Corporation (ETN) – a multinational giant in smart power management. The company produces highly complex electrical equipment: transformers, switchboards, uninterruptible power supply (UPS) systems, circuit breakers, as well as components for hydraulics and the aerospace industry.
• Powell Industries (POWL) – a manufacturer of complex, custom electrical equipment: switchgear, motor control centers, and modular Power Control Rooms (PCRs) for heavy industry, energy, and data centers.
• GE Vernova – the former energy division of the legendary General Electric, which spun off into an independent company in 2024. They are a global powerhouse in the energy sector.
• Vistra Corp (VST) – an integrated energy company and the largest independent power producer (IPP) in the US.
� Right now, they have already surged and look significantly overbought due to their vertical growth. They are on my watchlist and I'm waiting for a pullback before entering.
P.S. Investing in electricity is a bet on a structural deficit that cannot be fixed overnight. It serves as an energy hedge in an AI portfolio.