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Yahoo Finance host Julie Hyman joins Brad Smith on Wealth to discuss the recent surge in utility stocks (XLU), the sector leaning into volatility over rising demand for AI data centers and the energy needed to power them.
Traditionally a stable industry, utilities are now facing shifting dynamics, exemplified by the growth in power generation and expansions into solar, wind, and nuclear. Vistra Corp.'s (VST) 300% rise and Constellation Energy's (CEG) nuclear reactor deal with Microsoft (MSFT) highlight this.
Mizuho Americas managing director and senior analyst Anthony Crowdwell cautions investors, stating the firm has "struggled with valuation" for Constellation.
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Josh Lynch