Power demand is expected to surge over the next decade driven primarily by artificial intelligence and data centers, with natural gas , renewable and utility stocks poised to benefit, according to Goldman Sachs.
AI and data centers will consume 8% of U.S. power demand by 2030, compared with 3% currently, according to Goldman projections.
Natural gas will power 60% of the growth, while renewables are expected to make up the other 40%, according to the investment bank.
Goldman recommends that investors buy call options for stocks most levered to the coming power demand surge.
These buy-rated stocks are attractive because their current volatility is well below their median implied volatility, according to Goldman.
Persons:
Goldman Sachs, Goldman, Kinder Morgan
Organizations:
Southern Company, Southern