AI's Energy Demands: A Growing Challenge
The world is witnessing an artificial intelligence (AI) revolution with capabilities doubling every nine months as tech companies and governments invest billions into this transformative sector. However, a significant roadblock is the energy demand required to support AI infrastructure. According to Wells Fargo, AI's power demands could increase by 550% by 2026, equating to the energy consumption of Japan.
Kinder Morgan (KMI): Riding the Natural Gas Wave
Kinder Morgan (KMI), one of the largest energy infrastructure companies in the U.S., is set to benefit from the AI-driven demand for natural gas. With over 83,000 miles of pipelines, mostly for natural gas, KMI is well-positioned to capitalize on this surge. Analysts predict a growth of 25.9% in the next quarter, and the company has already increased its dividend this year.
Pan American Silver (PAAS): Silver's Surprising Role
Pan American Silver (PAAS) may not be the first company that comes to mind when thinking of AI, but silver is crucial for the clean energy technologies, such as solar panels and electric vehicles, that AI will increasingly rely on. The company owns the massive Escobal mine in Guatemala, which could help close the global silver supply gap. PAAS has shown a revenue growth of over 7% recently and offers a dividend yield above the S&P 500 average.
Cameco Corp. (CCJ): Embracing Nuclear Power
With bipartisan support, the U.S. has passed the ADVANCE Act to facilitate the construction of nuclear reactors, which is promising for Cameco Corp. (CCJ). The company holds over 450 million pounds of uranium reserves, vital for nuclear energy production. CCJ's earnings have increased by 163% in the last quarter, with projected growth of 73.3% this year, positioning it well to meet the AI energy shortfall.
